80G Registration under Income Tax Act
Donations made to a NGO registered under section 80G are permissible for 50% deduction from the taxable income of the donation made for such a person or an organisation making the donation.
12A Registration under Income Tax Act :
Section 11 and 12 of the Income- Tax Act 1961 are the most important sections of Income tax for Religious and Charitable trusts.
The taxation of trusts formed with the objective of providing relief to the underprivileged, work for environment, general public benefit, religious purpose, etc fall under this section.
The section defines what part of Income of such trust is taxable and what is exempt. The Income can be derived from capital gain from the assets of the Trust, its activities, or from donations.
Section 12AA of the new Income Tax act defines how a trust can register under these sections.
An application is to be made using form 10A along with relevant documents to the Income Tax Commissioner.
This is one time registration and to avail Tax exemption, NGO needs to register under section 12A.
35AC Registration for Income Tax benefit :
To encourage businesses and corporate houses to donate for specific approved social welfare projects, a tax incentive has been produced under 35AC of the Income Tax Act.
This section offers full deduction of the entire amount paid by business for financing particular schemes or projects. There is no limitation for the donor to donate under section 35AC.
Some of the projects for which the 35AC is applicable are :
- Construction and maintenance of drinking water projects in rural areas and urban slums
- Construction of dwelling units for economically weaker sections
- Construction of schools for children belonging to weaker sections
- Relief and rehabilitation of handicapped children
- Establishment and running hospitals in rural areas exclusively for women and children.
Registration of NGOs with NGO Darpan under NITI Aayog, Govt. of India :
VOs/NGOs play a major role in the development of the nation by supplementing the efforts of the Government.
This portal enables VOs/NGOs to enrol centrally and thus facilitates creation of a repository of information about VOs/NGOs, Sector/State wise.
The Portal facilitates VOs/NGOs to obtain a system generated Unique ID, as and when signed.
The Unique ID is mandatory to apply for grants under various schemes of Ministries/Departments/Governments Bodies.
FCRA Registration of NGO in India
Compulsory FCRA Registration for NGO who wish to receive contribution from foreign donors
The Foreign Contribution Regulation Act is the most important registration for a NGO that wish to receive contribution from foreign donors.
Without FCRA registration an NGO cannot seek foreign donation in India. The Act is meant to regulate all donation foreign in nature received in India as donation for religious,
charitable, social or environmental cause, whether such donation are received from Foreign Individual, Company, Society, Government or organisation.
The approval for the registration is given by Ministry of Home Affairs (MHA), Government of India.
