80G Registration
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80G registration for a charitable organization having foreign remittance of less than Rs.50 lakhs per annum.
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80G Registration
If you represent a charitable organization or are a donor seeking tax benefits, you’re in the right place. At Bmcs, we specialize in facilitating the acquisition of 80G registration under the Income Tax Act, enabling organizations to benefit from tax exemptions. Our proficiency and extensive experience ensure a smooth and hassle-free registration process for our clients.
What is 80G registration?
The Income Tax Act of 1961 includes a provision known as 80G registration, allowing donors to claim tax deductions for contributions made to eligible charitable organizations. This registration not only benefits the donor but also extends tax advantages to the recipient organization. Charitable entities registered under Section 80G can receive donations eligible for tax deductions, and donors can claim corresponding deductions when filing their income tax returns.
In 2020, the Finance Act introduced amendments to the 80G registration provisions in India. These changes mandate organizations with 80G registration to file annual returns, subject donees to verification by the Income Tax Department, and introduce the possibility of reassessing and revoking registrations for non-compliance. These amendments aim to enhance transparency, foster accountability, and ensure that donations are directed to legitimate charitable institutions. It is crucial for organizations and donors to acquaint themselves with these amendments to operate seamlessly in compliance with the updated regulations.
Eligibility Criteria for 80G Registration:
To qualify for 80G registration, charitable organisations must meet specific eligibility criteria set forth by the Income Tax Act 1961. The requirements include the following:
- The organization must be duly registered under the Societies Registration Act of 1860 or an equivalent legislation specified in Section 8 of the Companies Act of 2013. Additionally, it should hold registration as a trust, society, or nonprofit company in accordance with the pertinent laws in India. A crucial requirement is the possession of a valid registration certificate issued by the appropriate authorities.
- The organisation's objectives should not include provisions for utilising its income or assets for purposes other than charitable ones. The organisation must engage in activities under the "charitable purposes" definition specified in the Income Tax Act. These purposes include relief of people with low incomes, education, medical relief, preservation of the environment, promotion of art and culture and more.
- The organisation must comply with all income tax regulations and maintain proper books of accounts for its income and expenses. It should also submit its audited financial statements to the income tax department.
- The organisation should not have any income that is not exempt, such as income derived from business activities. If the NGO does generate business income, it must maintain separate accounting records and ensure that donations received are not used for purposes unrelated to charitable activities.
- The organisation should not work exclusively to benefit any specific religious community or caste.
- Under the revised provisions of Section 80G, it is compulsory for organisations seeking registration or re-validation to provide their registration number obtained from the Darpan portal of Niti Aayog. This requirement also applies when the applicant organisation receives or plans to receive grants or assistance from the Central Government or State Government.
Documents required for 80G registration:
- To apply for 80G registration, the following documents are typically required along with Form 10A/10AB:
- Self-certified copy of the incorporation document of the Trust/Society, whether created through an instrument or otherwise.
- Self-certified copy of the registration certificate issued by the Registrar of Companies, Registrar of Firms and Societies, or Registrar of Public Trusts, depending on the type of organisation.
- Self-certified copy of the registration under the Foreign Contribution Regulation Act (FCRA) if the applicant is registered under this Act.
- Self-certified copy of the existing order granting approval under clause (23C) of section 10.
- Self-certified copFor existing entities, copies of the annual accounts for up to three years immediately preceding the year when the application is being made.y of the existing order granting approval under clause (23C) of section 10.
- If the entity's income includes profits and gains from the business as per the provisions of the sub-section (4A) of Section 11: Copies of the annual accounts and audit report as per Section 44AB for the three years immediately preceding the year when the application is made.
- Details of the organisation's operations since its inception or for the last three years, whichever is shorter.
- It is important to note that specific document requirements may vary based on jurisdiction and the concerned income tax department. Our experts at Bmcs will guide you through the document collection process and assist you in ensuring that all necessary documents are submitted accurately.
Overview of 80G Registration Renewal:
Organizations seeking fresh registration under Section 80G must submit applications to the Principal Commissioner or Commissioner. Provisional registration, initially granted for three years, remains valid for three years from the Assessment Year in which registration is sought. For renewal, organizations must adhere to either of the following timelines, whichever comes first:
1. Submit the renewal application at least six months before the expiration of the current validity period.
OR
2. Submit the renewal application within six months from the commencement of activities.
The provisional registration, initially granted for three years, requires renewal following the specified timelines. The renewed registration is then valid for five years, with subsequent renewals necessary at the end of each five-year period.
Previously, under section 80G, existing registrations were valid indefinitely. However, changes introduced by the Finance Act 2020 mandate the re-validation of all existing 80G approvals. Organizations with existing registrations must apply for re-validation within three months. The re-validated registrations, under the amended provisions, remain valid for five years. Upon expiration of the five-year period, organizations must reapply for approval, ensuring submission at least six months before the expiry of the registration.
Our Registration Process:
To ensure a seamless and stress-free experience for our clients, we adhere to a streamlined registration process. Here’s an overview:
Consultation: Our experts conduct an initial consultation to comprehend your organization’s charitable activities, legal structure, and other pertinent details. Based on this information, we assess your eligibility for 80G registration.
Documentation: Once eligibility is confirmed, we assist you in gathering and preparing the necessary documents. This includes your organization’s registration certificate, audited financial statements, and project details.
Application Preparation: Our team meticulously prepares the 80G registration application, ensuring accurate inclusion of all required information. We also guide you on any additional documentation or clarifications that the authorities may require.
Submission and Follow-up: Acting on your behalf, we submit the application to the appropriate authority along with the supporting documents. Our team diligently follows up with the authorities to monitor the progress of your application.
Certificate Issuance: Upon successful verification and approval of your application, you will receive the 80G registration certificate. This certificate not only validates your eligibility for tax-deductible donations but also enhances your appeal to potential donors seeking tax benefits.
Why register with BmcsIndia?
Registering with Bmcs offers a host of benefits as we stand out as a premier provider of business compliance and registration services in India. Backed by a team of highly dedicated experts with extensive experience, we specialize in facilitating 80G registration for organizations, ensuring a seamless and efficient process. Opting for Bmcs means choosing a partner renowned for its expertise, proven track record, and commitment to excellence in securing 80G registration for numerous clients.
What sets us apart is our commitment to tailored solutions, designed to meet your specific needs. We handle all aspects of paperwork and compliance requirements, providing a hassle-free experience. Our dedication to timely completion, transparent pricing, and upfront detailing of fees adds to the appeal of choosing Bmcs . By partnering with us, you not only enhance your organization’s credibility but also gain access to valuable tax benefits. Embark on your 80G registration journey with confidence by contacting Bmcs today for expert assistance tailored to your requirements.
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