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80G REGISTRATION
80G registration is a way for non-profit organizations in India to get tax benefits. This means that when people or companies donate to these non-profit organizations, they can get some money back on their income taxes. The registration is given under a certain law called the Income Tax Act, and it’s supposed to encourage people and companies to donate to these organizations. So, if you’re thinking about donating to a non-profit in India, you can check to see if they have 80G registration to get some tax benefits.
Benefits of 80G Registration
80G registration has advantages:
Tax Deductions for Donors
If you give money to an organization that has an 80G registration, you can get a tax deduction under Section 80G of the Income Tax Act. This means that people and companies can benefit financially by donating to registered organizations.
Enhanced Credibility
Getting an 80G registration for an organization makes it seem more trustworthy to people who might want to donate money to it. This registration shows that the organization has followed all the rules and laws, and that the government approves of it being a charity or religious group.
Continuity of Existence
Non-profit groups with an 80G registration can keep running even if their board or management changes.
Support from Government and Philanthropic Institutions
If an organization has a paper that says 80G, they can get help from the government and charities. This help can be money or working together with others to do more good things. This makes it easier for them to help more people.
Compliance and Transparency
To register for 80G, groups must keep good accounts, file tax returns every year, and meet other rules. This helps make them fair and open in how they run things.
Competitive Advantage
Getting an 80G registration can help organizations stand out when they are trying to get funds or grants. Having this registration can make a difference between registered and non-registered organizations and might improve the chances of getting financial help.
Increased Fundraising Potential
When organizations have 80G certification, they can get more donations easier. People are more likely to give money to organizations that can give them tax benefits. This can really help the organization gather more funds.
Increased Donor Confidence
When an organization has 80G registration, it means donors can trust that their money will go towards real charitable or religious work. This builds trust between donors and the organization, which can lead to long-term relationships and more donations.
Eligibility for Government Funding
If an organization has an 80G registration, they can get money from the government to do their work.
Access to Corporate Social Responsibility (CSR) Funds
Businesses give money to do good things. If a group has 80G registration, they can get some of this money to do more good things. This helps them work with others and get extra support.
Perpetual Benefit
When an organization gets an 80G registration, it is valid for a certain period (usually 5 years or more). This allows the organization to keep getting tax-deductible donations and use them for their charity or religious work without interruption.
Better Outreach and Visibility
Organizations that have registration under 80G can be found on the Income Tax Department's website. This helps them become more visible to people who might want to donate or support them. Being more visible can lead to more people knowing about them and being interested in them. This can also lead to more opportunities for the public to get involved with these organizations.
Documents required for 80G registration
- Pan card of Trust/Society/Section-8 Company.
- Certificate of Trust/Society/Section-8 Company.
- Deed/MOA & RR and AOA of Trust/Society/Section-8 Company.
- All Members/Trustees/Directors Aadhar card and pan card.
- List of Donors.
- Bills of Expenses.
- Photographs of work of organization.
- Bank Statement and Financial Statement of Trust/Society/Section-8 Company.
- List of events.
