Patna consultant provides 80G registration in Darbhanga. 80G Registration means registration of NGO under section 80G of Income Tax Act, 1963. 80G Registration gives donor of NGO exemption from payment of tax on the amount donated to NGO. They do not have to pay Income Tax. An application for 80G registration has to be made only when NGO has got registration under section 12A of Income tax act.

80G exemption is one time exemption benefits available to NGO. It provides benefits to the donor of the NGO. The donor gets tax exemption in his or her amount of income.

Procedure

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If a NGO gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income.
Earlier registration under 80G was given as one-time registration unless any specific restrictions are provided in the registration certificate itself but Finance Act 2020 has made some substantial changes in registration process and period for which approval will be given.

Who can avail tax savings under 80G?

A person who makes donation is entitled to avail tax exemption under 80 G.
Donations made to listed trust and organizations only get qualified for deduction u/s 80G

What are benefits of 80G Registration?

The donor avails exemption/deduction from its taxable income
It attracts donors to make donation to NGO

When application for 80G registration can be made?

Application for getting 80G Registration can be made after getting registration under 12A registration
Application for getting 12A registration can be made just after registration of NGO

ELIGIBILITY for 80G Registration

Charitable trust, religious trusts, societies and section 8 companies are eligible
Private or family trust or NGO are not eligible

Process of getting 80G Registration

NGO has to make application to commissioner of Income tax along with all required documents
On receipt of documents, the commissioner may ask for additional set of documents
On satisfaction of all information mentioned in application, the commissioner will pass an order in writing registering NGO under section 80G of Income Tax act, 1963.
The registration process may take time upto 3 to 4 months.

New Registration

An application for fresh registration under section 80G are going to be given to Principal Commissioner or Commissioner. A provisional registration for 3 years are going to be given to organisations. The registration once granted shall be valid for 3 years from the Assessment Year from which the registration is sought. Application for renewal of such new registration must be submitted

– a minimum of six months before the expiry of validity period or
– within 6 months from commencement if activities,
whichever is earlier.

The provisional registration so granted shall be valid for a period of three years and hence must be renewed at the top of the above mentioned timelines. The registration so renewed shall be valid just for 5 years and wishes to be renewed at the top of every 5 years.

Existing Registration- Validation & Re-approvals

Earlier the approval u/s 80G was valid for perpetuity. The Finance Act 2020 provides that each one the prevailing 80G approvals must be revalidated and therefore the application for an equivalent should be submitted within three months from 1st April 2021 i.e. on or before 30th June, 2021. As per amended provisions, the revalidation of registrations are going to be valid for a period of 5 years and thereafter approval for 80G has got to be again applied for a minimum of 6 months before the expiry of the registration.

Who cannot avail tax savings under section 80G?

If a donation is formed to a far off trust you can’t qualify for tax savings under section 80G.

If donations are made too one or more political parties you can’t avail or claim deduction for such donations.

Deductions can’t be claimed even for printing or publishing of brochures, flyers and pamphlets
Donations by NRI if made to eligible institutions and trusts also qualify for tax exemption under section 80G.
If donation is formed from salary and if the donation receipt carries the name of the employer then employees can claim deduction under section 80G
Percentage of Deduction under Section 80G
Payments made to Prime minister relief fund is eligible for 100% deduction u/s 80G with none limit
Deductions made to trusts like “Indira Gandhi memorial trust” is eligible for 50% deduction with none limit.
An approved institution i.e. institutions promoting and inspiring birth control is eligible for 100% exemption u/s 80G
Any public trust that falls under the list is eligible for 50% deduction u/s 80G.