Section 80G of the Income Tax Act registration enables an Income Tax Payee to claim deduction for donation made by them to certain NGO. This deduction is subject to certain conditions.
The amount of deduction depends on-
a). To whom the donation has been made.
b). The amount of donation. They are exempted from 100% to 50% of the amount of donation.
All institutions are eligible for registration provided they fulfill the following conditions:-
- The Institutions should not spend any income or assets for any purpose other than a charitable purpose.
- The Institution should not be for the benefit of any particular religion, community, or caste.
- The Institution should maintain regular accounts.
- The Institution should be registered under the Societies Registration Act or any other similar welfare Act.
- Their expenses on religious activity should not exceed 5% of total income.
- They should submit their income tax return regularly.
- Form No. 10G requires the following important information:-
- Name and Address of the Institution.
- Name and Address of the office bearers.
- Income tax Particulars.
- Amount of surplus and mode of their investments.
- Copy of the registration granted U/s 12A or copy of notification issued U/s 10(23) or 12(23C) if any.
- A note on the activities of the institution for the last three years.
- Copy of the audited accounts for the Past three years.
- Memorandum and Rules & Regulations.
- Copy of the registration Certificate of the society
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