Introduction:-
The 80G certificate holds significant value for trusts and NGOs in India. It provides tax exemption benefits to donors, encouraging them to contribute to charitable causes. However, obtaining an 80G certificate involves a specific application process. In this guide, we will walk you through the step-by-step procedure to successfully apply for the 80G certificate.
Step 1: Understand Eligibility Criteria:-
Before initiating the application process, it's crucial to ensure that your trust or NGO meets the eligibility criteria set forth by the Income Tax Department. Your organization must be registered under section 12A of the Income Tax Act, and its activities should fall within the approved categories for 80G benefits.
Step 2: Document Compilation:-
Gather all the necessary documents required for the application. This typically includes:
- Registration Certificate: A copy of the registration certificate of the trust or NGO.
- Audited Financial Statements: Financial statements for the last three years, duly audited by a Chartered Accountant.
- PAN Card: A copy of the Permanent Account Number (PAN) card of the trust.
- Memorandum of Association (MOA) and Articles of Association (AOA): Copies of these documents outlining the objectives and rules of the trust.
- PAN and Aadhar of Trustees: Copies of PAN and Aadhar cards of all the trustees.
- Details of Activities: A comprehensive document detailing the activities and programs undertaken by the trust, along with supporting evidence.
Step 3: Form Submission:-
The next step involves submitting the application in the prescribed format. This includes Form 10G, which is the application form for 80G registration. It's important to ensure that all details are accurately filled in.
Step 4: Verification and Scrutiny:-
After submission, the Income Tax Department will conduct a thorough scrutiny of the application. They may request additional documents or seek clarification on certain points. It's crucial to respond promptly and provide any requested information.
Step 5: Inspection of Trust Premises:-
In some cases, the department might conduct an on-site inspection of the trust's premises. This is to verify the authenticity of the information provided in the application.
Step 6: Issuance of 80G Certificate:-
Once the scrutiny process is successfully completed, and the department is satisfied with the authenticity and compliance of the trust, they will issue the 80G certificate. This certificate is typically valid for a specified period and needs to be renewed periodically.
Conclusion:-
Obtaining the 80G certificate is a significant milestone for trusts and NGOs, as it opens up avenues for donations and contributions from individuals and corporates. By following this step-by-step guide to the 80G application procedure, you can ensure a smooth and successful process. Remember to keep all documents updated and in compliance with the regulations to maintain the benefits conferred by the 80G certificate.