In this blog I will be writing about the Section 80g which presents the laws for tax exemptions on donations and fund spent on the NGOs. You will get the tax exemptions benefits when there is a donation for NGO’s. This law would encourage people to donate more fund for NGO’s and most of the companies run NGO’s to avail this benefit. This blog will explain the key points related to the donations and tax exemptions on that. If you have any questions on section 80g please post it in the comments section. Please subscribe to our future articles here.
- Income Tax Exemption and Rules on Gifts
- Tax Exemption for Donation Under Section 80G
- BUY: Income tax guide for the tax payer
Register Under Section 80g
The organization to be registered under the Section 80g. If the organization is registered under the Section 80g, the person or company making donations to such organizations are eligible to claim the Tax Exemption on the amount they donated. But, there is certain restrictions on how much can exempted from the whole donations are subject to the Income Tax rules under Section 80g. Please read the following sections to learn more about the details.
Conditions on Section 80g
There is few conditions to be fulfilled under the Section 80g.
- The NGO should not have any income which are not exempted, such as business income. If, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business.
- The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable.
- The NGO is not working for the benefit of particular religious community or caste.
- The NGO maintains regular accounts of its receipts & expenditures.
- The NGO is properly registered under the Societies Registration Act 1860 or under any law corresponding to that act or is registered under section 25 of the Companies Act 1956.
Tax Exemption Limit on Donations
There is a limit on how much money can be exempted from the Income Tax.
- If the amount of deduction to a charitable organization or trust is more than 10% of the Gross Total Income computed under the Act (as reduced by income on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.
- The persons or organization who donate under section 80G gets a deduction of 50% from their taxable income. Here at times a confusion creeps in, that the tax advantage under section 80G is 50%, but actually it is not so. 50% of the donation made is allowed to be deducted from the taxable income and consequently tax is calculated.
- The ultimate benefit will depend on the tax rates applicable to the assessee. Let us take an illustration. Mr. X an individual and M/s. Y Pvt. Ltd., a Company both give donation of Rs. 1,00,000/- to a NGO called Satyakaam. The total income for the year 2003-2004 of both Mr. X and Ms. Y Pvt. Ltd. is Rs. 2,00,000/-. Now assuming that the rates are 30% for the individuals and 40% for the Companies without any minimum exemption limit.
Summary
- Income Tax Exemption and Rules on Gifts
- Tax Exemption for Donation Under Section 80G
- BUY: Income tax guide for the tax payer
Thank you for reading this article. I hope now you have good understanding on how to calculate the Tax Exemption on the donations. Don’t stop just reading the article. Please donate to such organizations and help the needies. If you need any help on finding the NGO’s in, please comment me, I can help out. Happy reading!!!!
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June 11, 2010 at 7:47 pm
i want fund for my ngo .how can i apply for fund guide me please
June 19, 2010 at 12:35 am
Hi, We are running an ayurveda NGO since last 14 years. We have 80G tax exemption too. We are looking for donations to carry our activities. More details about the NGO (AADAR) can be available at http://ayurveda-academy.blogspot.com/
Kindly guide us from where we can get donations – national or international sources. We do have eligibilty to accept international donation.
Thank you.
Dr. Prerak Shah,
Secretary, AADAR
ayulink@hotmail.com
June 24, 2010 at 8:05 pm
We are NGOs collective network in the name of SOUTHERN COLLECTIVE FOR STRATEGIC ACTION[SCSA] for south part of tamilnadu.Our network members are 45.But we mobilize funds from localy.However we expect some donations from like minded persons.please help our ngos network.
Thankyou
yours sincerely
Mrs.P.SELVI
CHAIRMAN
SCSA-NGOS NETWORK
MAIN ROAD,KAYATHAR-POST
TUTICORIN-DISTRICT,PIN 628952
June 24, 2010 at 8:25 pm
Respected sir,
My name is karuppasamy.Age about 44.Iam married with four childrens.I have more experience candidate in service of voluntary organisations of our district fro 1986 to till the date.But now Iam sicking Kidney trouble,Kidney stone,with diabetic infected.But no any income atpresent.Now Iam suffering from daily food and my childrens education also.We requesting more ngos and well wishers for humanity support.But we will not yet received any donations for tratment of my above sickness.So,we kindly and humble requested to all the human mentality supported persons please help me.
Your support send by following address.
s.karuppasamy,
34-A/3,pudukottai-village
Pannirkulam-post
Kayathar-628952
Thoothukudi-district
Tamilnadu.
Bank:CANARA BANK[CODE-1051]
KAYATHAR-POST
TUTICORIN-DIST
ACCOUNT NO.8294[SB]
NB:If you want any more details please contact our mail.
June 25, 2010 at 2:11 am
Dear sir,
Can u give me the actual working for Benefit of Donation 80g
i.e. 10% of taxable income or 50% donation
if our Taxable is Rs.250000/- and Donation is Rs.30000/- then what is the Benefit amount of Donation.
July 7, 2010 at 10:24 am
Dear Sir or Madam,
Thank you very much. We collect your address from internet. SHELTER is a national level NGO in Bangladesh and works in deferent fields under funded Recherché, Consultant Social works, and partnership with UNICEF, IOM, GTZ, GOB of Bangladesh, Embassy of the Federal Republic of Germany, ITF UK, EVERGREEN UK, JICA, HOPE’87, ATSEC Bangladesh, VGD DWA, Ger man Embassy Funded Fresh Drinking water and Sanitation project Chowhali in Jomuna (River) Char and other organization.
We need your partners support for extent our programs and develop our organization performing and works to our country grassroots level.
Hope your cooperation is highly appraised for make our performances and good partnership with your organization from next communing days.
I welcome you visit our organization and working field from your convenient time and see our work.
Please see our profile in attest file. If you need any more information about us please write me any time.
Thanks for your cooperation and wish you good luck.
Best Regard,
Salim.
Chief Executive Officer.
SHELTER
Cell.01715022893
info@shelterbd.org
shelterngo@yahoo.com
http://www.shelterbd.org
Reg.Partner Support for NGO works.
July 22, 2010 at 7:36 am
Dear sir
we have an organisation, it is registered under Trust Act, and we have 80G registration, recently got a donation Rs.100000/- from a Government Employee, how much amount can deduct from the tax, his total income is Rs.600000/- per year. we are confusing to inform to that person, how much can deduct from the tax amount.
please provide the message as early as possible.
Krishna Murthy
August 30, 2010 at 3:23 am
Please tell Me the Procedure to Set up a Trust for the benefit of the needy Students for their Higher Education, where the Donor will get Exempted for the Donations Under Section 80G of Income Tax Act.
September 8, 2010 at 11:46 pm
I want to 80 G renewal for NGO.
September 20, 2010 at 6:55 am
dear sir,
i have 80g and 80g parment 12/a.i wont get any fund only for wellwisher and my friends.we are seved to poor and poorest and needy people.please donate our trust save the people and save the nation.mail me ppramod280@rediffmail.com
September 27, 2010 at 10:32 pm
i want to sale my N G O
it is education N G O and our N G O 10G and 80G Certification
10 year old Registration form PUNE
my email id jk256056@yahoo.com
October 8, 2010 at 12:53 am
Hi…We have a Trust which run a educational institution for children who cant afford high fees.. Our trust has an 80G registered under the government…I am new and do not know how to get funds from different organizations…Can you please please help…as its necessary for the children’s education doesn’t get hampered. or can you recommend me to someone who can help !!!!
October 9, 2010 at 7:11 am
Dear donors,
we(sawali ngo) working in HIV/Aids , health, education ,poverty,and other social fields and drop-out children s education fields.However we lack funds for further development actions/programmes.But our organisation is eligible to receive public donations under section of 80G.our execmtion up to march 2011. and FCRA reg.also.so,we welcome to kind donors for our ngos work support.
if you want any more details please visit our website,www.sawali samajikNgo@gmail.com
Thankyou.
Abhijeet p shinde. satara.maharastra.
October 19, 2010 at 2:29 am
Hi Krishna,
My Gross Salary is somewhere around Rs 6,00,000. I am planning to donate around Rs 2,00,000 to an Educational Institute. Could you please let me know how much deduction can I expect from my taxable income? Thanks!
December 22, 2010 at 4:29 am
my income is 1000000 annual / i donated 70000 to nGO , this year ,under 80 g
how much tax i have to pay now.
pls explian brefly.
December 23, 2010 at 9:48 pm
Hi, I want to know How can I register my Society under Income tax Act 1961 Under Section 80G . Please guide me in detail , Step by Step.
Thanks & Regards
.
January 17, 2011 at 10:58 am
how 80g benfits the donare
when he donates to the sports organisation or sports club?
January 31, 2011 at 12:37 am
Donation made to a NGO, coming under 80G. Exemption can be claimed from Employer side in TDS or not ?
February 4, 2011 at 12:05 pm
Dear donors,
SEWA BHASKAR working in health, education ,poverty,and other social fields and drop-out children s education fields.However we lack funds for further development actions/programmes.But our organization is eligible to receive public donations under section of tax exemption up to march 2011. so,we welcome to kind donors for our ngos work support.
if you want any more details please visit our website,www.sewabhaskar.com
Thankyou.
February 10, 2011 at 6:45 am
I donated Rs.1000/- each melmarvaruthar sidhar peedam, some orphanages with total donation amount is Rs. 5000/-. My income tax assessment is Rs.19,000/- Can i get Rs. 5000/- deduction from the tax burden? kindly clarify?
February 10, 2011 at 6:46 am
I donated Rs.1000/- each melmarvaruthar sidhar peedam, some orphanages with total donation amount is Rs. 5000/-. My income tax assessment is Rs.19,000/- Can i get Rs. 5000/- deduction from the tax burden? kindly clarify via e-mail?
February 16, 2011 at 7:48 am
how to get 80g for non profit ngo
February 24, 2011 at 8:48 am
what is 80GAA ?
March 17, 2011 at 11:17 pm
Can the employer deduct the donations paid u/s 80G from salary income
March 21, 2011 at 6:03 am
do i get income tax exemption if i donate to other NGO out side India who provide me receipt or prove? I did that in the past and have some prove of my donation but don’t know if it is eligible for tax exemption.
March 25, 2011 at 4:07 am
Dear sir,
Apna 1-Trust he. jiski 80/G RENEW Time 2010(Ass.yr.2010/11) tha. But mera C.A. saheb bole RENEW ki jarurat nahi.
hum kya kare? Log Bolte he ye certificate to 2010 tak valid tha…!
plz koi upay batane ka kast kare.
Apka
sarad
March 30, 2011 at 1:53 am
Respected sir,
My NGOis registered under socities sec. 1860 act & I want registered under act 80G. So please help me how to procedure of Income tax Dept.
Best Regard’s
Amar varma
president
A group of san technovision society,Ballarpur(M.S)
March 30, 2011 at 4:32 am
i want to information about 80G. i have a ngo of 13 years old.i want to transfer orto give in hand of some needy people.
April 21, 2011 at 8:59 pm
Our 80G(5) Exp 31/3/2011 RENUAL REQUITER ?
April 23, 2011 at 6:22 am
My NGO is registered since 2004 and Tax exempted under section 80G and 12A. I have license from UP government viklang kalyan vibhage and working on old age home project in vrindavan. I am looking for a person who can handle this project as a owner or Manager.
May 6, 2011 at 2:53 am
We provide Tax Deduction of 175% on the donations made to our Trust under Section 35(1)(ii) of Income Tax Act.
We seek support from Corporates/individuals for the same. In case of enquirers please contact at
9999474440 or bjstrust990@gmail.com
Regards,
Rajat
May 17, 2011 at 8:02 pm
Hi,
My client is running a charitable society mainly works for the help of needy cattles (mainly cows) i.e. Gaushala. The society is being working for last one year. Can they get registered under sec.80g for smoothly running of their donations?
Thanks,
Anil Bhateja
June 10, 2011 at 4:24 am
Respected sir,
our NGO National level Ragistered under section 12/A &
80G of the income tax act,Govt. of india F.C.R.A.MinistryofHome,35AC Ministry of finance,Govt.of India
OUR PROJECT”S :-
1. Old-Age Home (Mail &Fimel) 2.Sister Nivedita Seva Sadan Thalassemia Hospital &Research Center. 3.Food Processing. 4. Nurshery Project.5. Jute Project for Export.Etc
we are totaly WEST BENGAL WORKING &HELPLESS WOMEN”S HOUSING SOCIETY.
Any person can donation for rurning this project.
June 12, 2011 at 10:55 pm
Can a Pvt Ltd company get any Income tax benefit on Donations to approved list of charitable trust. Assessment year 2011-12, donation of Rs.1.00 lac
June 22, 2011 at 1:50 pm
thanx a lot for the information!!
June 27, 2011 at 2:17 am
Respected Ira Siva,
This is to answer Ira Siva
that you will get tax rebate for 50% on the taxable amount.
For further queries you can contact 9303128551, 9479374232.
We are Non Profit Organisation working for non profit all over the country with permanent 80G certificate and 12A certificate income-tax.
Thank you.
June 27, 2011 at 2:52 am
Respected Sir,
We are non profit organisation working from last 14 years all over the country and now we are in search of projects for our organisation as we are registered for permanent 80G and 12A certificate for income tax.
So if anyone intrested in giving projectsto this organisation please contact 9303128551, 9479374232.
Thanking you in anticipation.
With regards
August 26, 2011 at 2:16 am
after substracting all allowances from my income,my taxable income is 90,000.how can i exempt the tax on 90,000 by giving it to some charities…
September 1, 2011 at 8:12 am
Can the director of company formed u/s 25, donate money to the company and claim deduction u/s 80G. Please revert ASAP
October 7, 2011 at 9:57 am
Sir,
My taxable income after 80C savings + HRA exemption is Rs 6,35,467
I have donated 2,40,000 rupees to a non-profit charitable trust (Ashram). Please suggest me how much tax exemption I can get benefit?
I have another query on charitable trust. The charity trust is running in a small village and they are registered with govt of Andhra Pradesh. Please tell me the procedure so that they can issue 80G certificate to me.
October 23, 2011 at 4:30 am
we also work in devlopment of poor ladies in rurual area .i request to donet the fund to our instituion
November 11, 2011 at 9:29 am
Respected sir,
My NGOis registered under socities sec. 1860 act & I want registered under act 80G. So please help me how to procedure of Income tax Dept.we also work in devlopment poot&intigretete trybal boys&girls o to
11 years. and rurual areas.
Best Regard’s
vishnu v bhil
president
A Eklavya adivasi yuva sanshtra shirud(M.S)
919404576846,919404576846
November 16, 2011 at 9:03 pm
My organization (NGO) has an 80G certificate. An MNC wishes to make a grant to us in foreign currency (under FCRA). Will this be covered under 80G tax exemption
November 19, 2011 at 1:13 am
Hi..
I have a query which is very urgent..
A NGO has spent expenses on payment of brokerage to a Non- Profit Organisation which is collecting the donation for them, as a % of donation amount. Will this be considered as Expenses for charitable purpose from NGO point? and what about the doners who are donating Rs.100 but actually only Rs.93 is being utilised for NGO purposes? can the NGo issue Receipt to doner for tax saving of Rs.100? please clarify..
December 13, 2011 at 12:23 am
i need donation for my ngo women and youth traning programm
February 13, 2012 at 2:28 am
Dear Krishnas
Our NGO is actively working towards the development and uprising of poor citizens, tribals and disadvantaged children. And re-habitation of drugs users, HIV awareness… in the north-east India.
we want individuals/corporates to join/help in our mission.
Our organization has 80G of the Income Tax Act, 1961 and FCRA Registration.
thanking you
Sincerely
manni shimrah
09711566778
February 17, 2012 at 10:15 pm
we are calling to you for give donation a sansthan’s name
it is “maha veer shikshan evam seva sansthan”
it provide poor boys/girls free computer education and do
very social work it is a ngo registerd under socities registerd act 1860
February 22, 2012 at 4:02 am
my name is babloo sawant and i am coach of wushu gams and i am give free training in village so many children take training one student he name is akshay parmar is 12 years old.he was finish his training book of guinness world record we are fanecial problem please give me a donason to complet his record and you whach his video on facebook bmsawant083@gmail.com my contact no:9016240904 & 8866836991
February 29, 2012 at 11:18 pm
I want to start a NGO and wish to make it registered it under sec 88G and 12A certificate for income tax.
Please help me .
April 6, 2012 at 5:23 am
Dear sir,
we are working with poor women and childrens education releted works and we are taking 80G AND 12AA so please inform to me any help to our parivartana organization,
kollappa. secretary
parivartana
4th cross mastamma badavane
jogimatti road
chitradurga-577501
karnataka- india
ph-8971747758
9538888982