Revalidation of 80G and 12A: (Registration of 12A & 80G Registration)
The charitable institutions are eligible for certain tax exemptions and benefits in India. The exemptions (12A & 80G Registration) and benefits are dealt with under Sections 12A/12AA and 80G of the Income Tax Act, 1961. The institutions availing benefits under Section 12A and 80G had to revalidate their registrations under these two sections before August 2020 to continue to obtain the benefits. https://www.incometaxindia.gov.in/Pages/tax-services/registration-e-filing.aspx
The existing religious or charitable institutions or NGO’s had to re-apply to the Income Tax authorities for revalidation of the existing registrations. The charitable institutions cannot claim the benefits provided to them under 12A and 80G deductions without revalidation. This revalidation process focuses on whether the charitable activities of the institution or trust or NGO are genuine or not.
The Income Tax Department has introduced a new provision of section 80G of the Income Tax Act that will provide benefits to the donors of NGOs or charitable organizations. The section will allow for a deduction of up to Rs 1.5 lakh per financial year as long as the donation is made to an NGO registered under section 12A and not-for-profit entities. A donor can claim this deduction for donations made under sections 80C, 80D, and 80G so long as they donate to the same NGO.
What is Section 12A?
“This section of the Income Tax Act deals with exempting tax relief to the various charitable institutions and trusts that are allowed to receive donations from the general public and are in receipt of grants from public bodies.”
What is Section 80G:
“Section 80G of the Income Tax Act deals with deduction of interest paid by certain organisations and charitable institutions for making loans to institutions related to the same religion.”
If you want to know about the process of revalidation of registrations under Section 12A and 80G, read on to know what you need to do. https://ngotrust.in/
To know about Section 80G of the Income Tax Act, please take a look at the following post.
Section 80G of the Income Tax Act, 1961, is a section that has several tax saving provisions for various charitable activities. This section exempts certain income from tax. The exemptions provided under this section are aimed to reduce the tax burden on charitable activities undertaken by a charitable institution.
In the case of charitable institutions that were previously exempted from tax under Section 80C of the Income Tax Act, 1961, they can now re-apply for the same benefit through the process of revalidation.
An amendment was made to Section 80G of the Income Tax Act which prevents tax audit on revalidation.
Know much more for 12A & 80G registration visit us on : https://www.incometax.gov.in/iec/foportal
What are the benefits of charitable institutions under these sections?
As the name suggests, these two sections have a special benefit for charitable institutions. The charitable institutions are exempted from income tax on donations received by them.
The charitable institution or NGO is also entitled to tax deductions on certain expenses. For example, 80G exemption allows the NGO or charitable institution to claim a deduction for expenditure on examination, inspection, renewal or filing of the accounts. The charitable institutions or NGOs are allowed a deduction for some expenses including purchase of books, software, postage, training course and travelling allowance.
How to apply for revalidation of registration?
The applicant has to apply to the Commissioner of Income Tax with details of the relevant charity, the section under which it is registered and the activities, if any, which are being carried out in pursuance of its registration. The list of officers of the same charitable institution or trust, who are the members of the Income Tax Appellate Tribunal or other authority for adjudicating the complaints against the provisions of Income Tax Act, 1961, has to be submitted to the Commissioner of Income Tax along with the application for revalidation of registration. The Income Tax Commissioner will then decide whether to grant revalidation or not, based on the documents that have been submitted. Know the details fact :https://ngotrust.in/blog/
Filling up Form No. 60
The charity institutions or NGO’s can file the application form 60 with respect to the revalidation of registration under Section 12A and Section 80G as specified below. The application form would be issued by the Income Tax department as per the regulations provided under this section.
Form No. 60 has been provided by the Income Tax department under the Income Tax Act, 1961. Detailshttps://ngotrust.in/contact-us/
The above is the criteria for filing Form No. 60 as prescribed under the said section.
The charitable institution/NGO or religious or charitable trust/ NGO etc. listed under the below criteria should fill up the application form (Form No. 60).
Performing or executing any of the religious/charitable activities
The activities such as by any organization, religious or charitable trust/ NGO etc.
Procedure to be followed
A statutory notice with the revalidation notice had to be sent by the charitable institution or the NGO to the Income Tax Department on or before August 2, 2019.
For more details on 12A & 80G registration contact us on:
The notice had to be marked by hand or by post or electronically for e-revalidation or by hand and by post for physical verification and acknowledgement or not by hand and by post or electronically for offline verification or acknowledgement. https://www.incometaxindia.gov.in/Pages/i-am/trust.aspx?k=Registration
After receiving the notice, the institutions had to follow the procedure mentioned in the notice and send an acknowledgement along with the physical certificate to the Department by August 31, 2019.
The response to the acknowledgement should contain details like the physical certificate of the charitable organization or a trust and all relevant details about the revalidation application.
So if you still haven’t finalised your charitable donations for the Financial Year 2018-19, do take a look at this article. Use the points mentioned in this article and make your final tax-saving decision. Remember that there is no such thing as “free money”.
Buying physical gold with the intent of donating it to a charitable organization is legal and considered the legitimate way to make an unencumbered donation to a charitable organization. However, if you prefer to buy gold in exchange for cash, the legal approach is to sell the gold bullion and donate the cash amount to the charitable organization that has the intention of building or upgrading a memorial, building/upgrading a building for a religious purpose, or buying land to build a religious building.
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