80g

Crystal Consultancy has been established to cater to the needs of thousands of NGOs all over India and is the only organisation providing various services in respect of 12a and 80g besides ngo services and guidance in the whole of India.

1. Address :- Crystal Vision , 45B , Hasanpur Main Road,1st
Floor , I.P. Extension , Patparganj , Delhi-110092.
Webside :- http://www.80g.co.in
Contact :- 011-43557608 , 011-22235922 ,
9899647455

2. What is 80g?
•Section 80g offers a tax deduction for
donations to certain prescribed funds and
charitable institutions.

3. Benefits of 80g
•Those organizations who donate to
ngo under section 80g, they get
deduction of 50% in their tax.

4. Eligible Assesses for Eligible Assesses for
80g80g
This section is applicable to all Ngo, who make This section is applicable to all Ngo, who make
an eligible donation, whether an individual, HUF, an eligible donation, whether an individual, HUF,
NRI or a company. NRI or a company.

5. Applying for 12a
certification
• shall ensure the acceptance of
the organization by Income Tax
department. After getting the
12a certification the ngo
organization gets the perfect
legal entity.  The entire tax of
ngo is exempted.

6. Apply for 80g Apply for 80g
certificationcertification
 By showing their record of achievements in social By showing their record of achievements in social
welfare activities and by proving their service to the welfare activities and by proving their service to the
public. By getting this 80g certification, organization are public. By getting this 80g certification, organization are
privileged to provide tax exemption to the donors who privileged to provide tax exemption to the donors who
donates their organization. That is when an donates their organization. That is when an
organization receives donation from public, individual organization receives donation from public, individual
or from a group it shall issue 80g tax exemption to the or from a group it shall issue 80g tax exemption to the
donor, where donors are entitled to donate from their donor, where donors are entitled to donate from their
10% of gross total annual income. In that 10% of their 10% of gross total annual income. In that 10% of their
donation, donors shall receive 10% tax exemption for donation, donors shall receive 10% tax exemption for
their donation. So this type of certification, gives the their donation. So this type of certification, gives the
power to the organization to encourage their donation power to the organization to encourage their donation
to donate more .to donate more .

7. What is the validity What is the validity
period of the registration period of the registration
under section 12A and under section 12A and
80G of Income Tax Act?80G of Income Tax Act?
12A registration : Lifetime validity12A registration : Lifetime validity
80G registration : 1 to 3 years validity80G registration : 1 to 3 years validity

8. When you apply for 80 g you shall When you apply for 80 g you shall
check yourself for the fitness of 80g check yourself for the fitness of 80g
approval under the following factors.approval under the following factors.
1. If nonprofit Ngo organization is under going with any business, then they 1. If nonprofit Ngo organization is under going with any business, then they
have to maintain a separate account and should not mix the donations have to maintain a separate account and should not mix the donations
they receive for social cause. they receive for social cause.
2. Other than charitable cause the organization or its byelaw should not 2. Other than charitable cause the organization or its byelaw should not
represent any other causes towards spending of such donation amounts represent any other causes towards spending of such donation amounts
or the assets and incomes of the nonprofit Ngo organization. or the assets and incomes of the nonprofit Ngo organization.
3. The nonprofit Ngo organization shall not be able to apply for 80 g if it 3. The nonprofit Ngo organization shall not be able to apply for 80 g if it
support religion based, caste and creeds based activity. support religion based, caste and creeds based activity.
4. The nonprofit Ngo organization should have the qualification of 4. The nonprofit Ngo organization should have the qualification of
registration which might have been registered under Societies registration which might have been registered under Societies
registration act 1860 or registered under section 25 of Companies act registration act 1860 or registered under section 25 of Companies act
1956. 1956.
5. Proper annual returns, accounting, book keeping should be in manner 5. Proper annual returns, accounting, book keeping should be in manner
before applying for 80 g. before applying for 80 g.
6. If you have already received the 80 g certificate, then proper renewal is 6. If you have already received the 80 g certificate, then proper renewal is
must to hold such tax benefits. must to hold such tax benefits.
Income tax department has the power to approve or reject such approval Income tax department has the power to approve or reject such approval
upon disqualification of the nonprofit organization or dissatisfaction upon disqualification of the nonprofit organization or dissatisfaction
found by the department towards the nonprofit Ngo organization found by the department towards the nonprofit Ngo organization
activities.activities.

9. Donations with 100% deduction Donations with 100% deduction
without any qualifying limit .without any qualifying limit .
 Prime Minister’s National Relief FundPrime Minister’s National Relief Fund
 National Defence FundNational Defence Fund
 Prime Minister’s Armenia Earthquake Relief FundPrime Minister’s Armenia Earthquake Relief Fund
 The Africa (Public Contribution - India) FundThe Africa (Public Contribution - India) Fund
 The National Foundation for Communal HarmonyThe National Foundation for Communal Harmony
 Approved university or educational institution of national eminenceApproved university or educational institution of national eminence
 The Chief Minister’s Earthquake Relief Fund, MaharashtraThe Chief Minister’s Earthquake Relief Fund, Maharashtra
 Donations made to Zila Saksharta Samitis.Donations made to Zila Saksharta Samitis.
 The National Blood Transfusion Council or a State Blood Transfusion Council.The National Blood Transfusion Council or a State Blood Transfusion Council.
 The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air
Force Central Welfare Fund.Force Central Welfare Fund.

10. Donations with 50% deduction without Donations with 50% deduction without
any qualifying limit.any qualifying limit.

Jawaharlal Nehru Memorial FundJawaharlal Nehru Memorial Fund

Prime Minister’s Drought Relief FundPrime Minister’s Drought Relief Fund

National Children’s FundNational Children’s Fund

Indira Gandhi Memorial TrustIndira Gandhi Memorial Trust

The Rajiv Gandhi FoundationThe Rajiv Gandhi Foundation

11. Deduction amount u/s. 80g. Deduction amount u/s. 80g.

Donations paid to specified institutions qualify for tax Donations paid to specified institutions qualify for tax
deductionunder section 80G but is subject to certain deductionunder section 80G but is subject to certain
ceiling limits. Based on limits, we can broadly divide ceiling limits. Based on limits, we can broadly divide
alleligible donations under section 80G into four alleligible donations under section 80G into four
categories:categories:

a) 100% deduction without any qualifying limit (e.g., a) 100% deduction without any qualifying limit (e.g.,
Prime Minister’s National Relief Fund).Prime Minister’s National Relief Fund).

b) 50% deduction without any qualifying limit (e.g., b) 50% deduction without any qualifying limit (e.g.,
Indira Gandhi Memorial Trust).Indira Gandhi Memorial Trust).

c) 100% deduction subject to qualifying limit (e.g., an c) 100% deduction subject to qualifying limit (e.g., an
approved institution for promoting family planning).approved institution for promoting family planning).

d) 50% deduction subject to qualifying limit (e.g., an d) 50% deduction subject to qualifying limit (e.g., an
approved institution for charitable purpose other than approved institution for charitable purpose other than
promoting family planning).promoting family planning).