Tax Exemption- Steps for Getting an 80G Certificate

 

Do you want to donate in a non profit organization with minimal tax paying options? Here is an account for all seekers of such a provision. It is a complete account of information regarding the 80G certificate provided to the non-profit organization. 

A glimpse of 80G Certificate

The 80G certificate is granted to the non profit organizations by the Income tax department. Through this you can take tax benefits in your income tax filing. The main objective of 80G is to encourage the donors to donate to such funds and organizations. This would provide tax exemptions to the taxpayers.

Criteria to be Followed for Availing 80G Certificate for Tax Exemption

The non-profit organization that is required to apply for the 80G Certificate must follow the procedure given below:

Step 1: The organization must fill in an application for an 80G certificate to the Income Tax Commissioner.

Step 2: Another Form 10G must be filed for further procedures.

Step 3: An activity report for the past one to three years of the workings of the non-profit organization must be provided by the audited statement. In some cases, it is to be provided from the date of establishment.

Step 4: All the forms of the audited statement and other documents are submitted with the 80G Form to the department.

Step 5: After the scrutinizing of the application, an inspection is done at the premises of the organization by the Income Tax official.

Main Factors for the NGOs and Not-for-Profit Organizations to Avail the 80G Certificate

It's important to note that not all non-profit associations are eligible for this instrument. There's proper attestation and undisciplined procedures that must be done in order to achieve this instrument by the NGOs and not-for- profit associations. The below mentioned factors should be followed by the associations.

The points and objects of the association must be clear

In case the association is involved in any business- related exertion, also the finances raised by the donation shouldn't be used for the business work. The finances must be rigorously maintained for charity purposes only. In other words, the association shouldn't immingle the charity and social cause with the businesscase.However, also the 80G Certificate won't be handed under the Income Tax Act, If that's done.

Proper attestation and account of the association must be maintained

The association applying for the 80G Registration must achieve well- planned and organized account norms. The entire plutocrat in the form of donations must be used for a social cause only. This must be further reflected in the account and attestation of the association. The Income Tax Department will give the 80G Certificate after all the legitimacy and verification is done.

Unprejudiced towards any faith, belief, or culture

The association that applies for the 80G Certificate mustn't follow any kind of religious, estate, creed, or any other form of bias. In case any similar involvement is plant, also the instrument for duty impunity won't be issued by the Income Tax Department.

The association must be registered

The Non-profit association must be registered under the Societies Registration Act 1960 or under Section 25 of the Companies Act 1956. In case proper enrollment isn't done, also the 80G Certificate can not be profited.

Documents  Needed to Avail the 80G Certificate by the Benefactors

There's an entire procedure that has to be fulfilled in order to achieve the duty impunity policy under the 80G Certificate by the Income Tax Department. The benefactors are needed to fulfill the returned documents. The charity benefactors are also needed to give these documents with the usual set of documents to mileage of the 80G Certificate programs.

The documents includes

Damage issued by the non-profit association

The benefactors are needed to produce a damage for the donation or charity that they've made under the NGO Registration. It's obligatory to have damage, once a trust or fund receives a donation in any form. The damage is needed to be stamped by the authority of the association that's accepting the charity. The damage must also include the name, date, and the Visage Number particulars. The stamped damage is one of the most important documents needed to achieve the 80G Certificate affiliated duty deduction policy.

Filled-in Form 58

The donations, which are intended to be a 100 duty deduction, must produce a Form 58 for final procedures to be done.

The charity benefactors must note that it's important to have proper attestation of all these particulars in order to achieve the stylish possible results of the 80G Certificate. The policy is under keen observation by the IT Department and therefore, should fulfil all of the criteria according to them.

Form of Donations under the Income Tax Act for 80 G Certificate

It's important to note the forms of donation and charity. The forms can be multiplied, but the most applicable form of donation can help in the ease of a successful sale.

The benefactions to the particular fund or trust must be made in the form of cheques or demand drafts. This is the most accessible way to gain donations and charity under the 80G Certificate. There's no restriction on the quantum of donation involved in the sale of cheques and demand drafts.

No deduction shall be allowed in respect of donation of any sum exceeding 2000 rupees unless the sum is paid by any other mode than cash.

The sale of charity in any other form of gifting, food particulars, apparel, and much further won't be entitled under this act of the duty deduction policy of the Income Tax Department.

Conclusion

Getting an 80G Certificate is helpful for numerous and it's an important duty saving instrument. So if you're making donations, don't miss out on 80G instruments, as it'll exempt you from paying levies.