80G Certificate is issued to a non-profit organization or non-governmental organizations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organizations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income. To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organization.
These are some features are :
Following documents are required for registration purpose:
80G Registration about 45-55 working days.
The government offers Section 80G donation tax rebate as an incentive for donation. Under the Income Tax Act, Section 80G can be accessed via contribution to relief funds and charitable institutions. Further, it is possible to claim donations with 100% deduction (subjected to 10% of adjusted gross total income).
Section 12A and Section 80g. An NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations.
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