80 G
Ranjeet Singh chauhan
(Querist) 19 April 2010
This query is : Resolved
Hi all,
I got my NGO registered under societies registration act 1860 section 21 on November 2009.
Now, I want to have 80G certificate for my NGO. Is My NGO is eligible to get 80G (as we have registered ngo 6 months back).
I discussed it with CA and he informed that I have to pay Rs. 15000/- for that and I will get the certificate.
Can anyone help me with this and can proced me the procedure to obtain the same.
Is is mendatory that I have to get 80G through CA only and I mylself can't apply for the same.
Raj Kumar Makkad
(Expert) 19 April 2010
You can also apply but there are various accounting processes and requirements which can be fulfilled at least by some authentic person so it is better either to consult and take services of any taxation side lawyer or CA. Bargain with them for fee.
A V Vishal
(Expert) 19 April 2010
In order to claim exemption, an NGO should make an application to the Commissioner of Income Tax for registration of the NGO. Such application is to be made in Form 10A. The following documents are required to be submitted :
i) Form 10A
ii) The original instrument under which the NGO is established, or the Bye Laws & Memorandum of Association evidencing the creation of the NGO should be enclosed.
iii) Two copies of the Accounts of 3 previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of lesser No. of years may be submitted.
Prior to the changes made by Finance Act 2007, the application for registration by an organization should have been made before expiry of one year from the date of creation of an organization. Organisation which made delayed application was allowed exemption with effect from the 1st day of the previous year in which application is made. The Commissioner of Income Tax had power to condone the delay in filing application.
Provisions after to 1st June 2007
The above provisions were amended by the Finance Act 2007. According to the amendment, the power of the Commissioner of Income Tax (CIT) to condone the delay has been withdrawn w.e.f. 1st June 2007.
Implications of the above amendment
Any delay in the filing of application for registration by the organisations cannot be condoned by the CIT. The exemption shall be given from the 1st day of the previous year in which the application was made and if the organisation has any income in the previous years prior to filing the application, shall be subject to tax. Thus the onus of availing exemption of Income from the Income Tax Department lies on the organisation itself.
The application is to be submitted Income Tax - Registration Procedure to the Commissioner of Income Tax in whose area the NGO is located.
GRANTING & REFUSAL
The Commissioner of Income Tax, on receipt of an application for registration of an NGO, shall call for such documents or information, as he thinks necessary. While processing such application, the concerned authority normally concentrates on the genuineness of the NGO. Once the genuineness of the activities & creation is established, then it is incumbent upon the authority to pass an order in writing, registering the NGO.
OPPORTUNITY OF BEING HEARD
The Commissioner of Income Tax has the power to reject an application for registration. It may be noted that such powers cannot be used arbitrarily without subtantiating adequate reasons for such rejection. Under the current laws it is statutorily required that, an opportunity of being heard should be provided to the applicant, before rejection of any application.
CAN WE APPEAL AGAINST REJECTION
Under the provisions of Section 253 of the Income Tax Act an appeal can be made to the Income Tax Appellate Tribunal against an order rejecting the application for registration. Under such circumstances if an NGO sincerely believes that an unjust order has been awarded against it, then it can file an appeal.
TIME LIMIT FOR PASSING THE ORDER
Under income tax laws the order for either granting or refusing registration shall have to be passed within six months from the end of the month in which the application was made.
WHAT IF NO ORDER IS PASSED WITHIN THE TIME LIMIT
Here it is worthwhile to note that, both FCRA and Income Tax laws in India are vague and ambiguous in this regard. Ironically it has been clearly mentioned in the Income Tax Act that an order has to be passed within 6 months but nothing has been mentioned about the fate of the application if it is not cleared within 6 months. Some sort of amendment is required in this regard. A deeming provision for automatic registration may not be a bad idea. Under FCRA Laws if an NGO applies for prior permission to receive Foreign Funds and if the application is not processed within 90 days, the application is deemed to have been automatically granted. But as far as registration is concerned both Income Tax Act & FCRA are silent.
CAN REGISTRATION ONCE GRANTED BE CANCELLED
The Finance Act, 2004 has inserted a new sub-section to section 12AA. By virtue of this newly inserted sub-section 3, the Commissioner with effect from 1st day of October, 2004 shall have the power to cancel the registration, if he or she is satisfied that the acitivities of such trust/institution are not genuine or are not being carried out in accordance with the objects of the Trust or Institution. Before such cancellation, the Commisioner has to provide a reasonable opportunity of being heard and an order in writing has to be passed for such cancellation.
CONDONATION OF DELAY
The application for registration should be made within one year from the date of creation of Trust. If application is filed after the period as said, then the Chief Commissioner or Commissioner can condone the delay after satisfying himself that sufficient reasons exist for delay. If condonation of delay has not been granted by the Commissioner, then the Trust or Institution would be eligible for exemption from the first day of the financial year in which the application is filed.
The power empowering the authority concerned to condone the delay, in case of Trust or Institution who makes an application before the expiry of one year from the date of creation of the Trust or the establishment of the Institution, whichever is later, still remains as it was before, as such authority concerned have power under the circumstances to condone the delay, after satisfying the reasons for delay and for reasons recorded in writing.
adv. rajeev ( rajoo )
(Expert) 20 April 2010
you can also voluntarily apply for the 80G exemption, but it requires knowledge to follow the procedure.
Ranjeet Singh chauhan
(Querist) 20 April 2010
thanks Vishal and Raj Kumar Ji for your invaluable response
