80G Registration

80G Registration

Section 80g is of an incredible advantage to the corporates and worldwide organizations where yearly turnover are in crores. On the off chance that they give to NGOs having 80G enlistment, they will get 50% duty refund of the given sum. Note that when enlistment is allowed under Section 12A, it doesn't imply that Section 80G endorsements has been given i.e. enlistment under Section 12A won't give programmed endorsement under Section 80G. It must be connected independently. Section 80G applies only to altruistic trusts or organizations. It doesn't make a difference to religious trusts or organizations while plan of exception u/s 12A applies to both altruistic and additionally religious trusts. The applications for registration under Section 12A and 80G can be connected together or they can likewise be connected independently. On the other side that trust will apply both the applications independently, application for enlistment u/s 12A must be connected first as the enrolment u/s 12A is must for applying for enrolment u/s 80G of the Income Tax Act. Donations in kind do not qualify for deduction under section 80G (The Supreme Court of India in the case of H.H. Sri Rama Verma vs Commissioner of Income Tax).

Benefits of Registration under Section 80G:

1) Section 80G of the Income Tax Actí1961 provides deduction while computing the total income in the hands of donor. It provides deduction in respect of donations to certain funds, charitable institutions, etc.

2) The recipient of money or the donee gives a receipt of donation, based on which the donor is entitled to claim a deduction, provided the donee institution is approved under section 80G of the Income Tax Actí1961.