Overview
80G Certificate is issued to a non-profit organization or non-governmental organizations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organizations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income. To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organization.
A non-profit organization or non-governmental organization (NGO), a charitable trust or a Section 8 corporation, are qualified to apply for 80G registration as well as getting certification under section 12A. Both the certifications can be applied together and it can also be completed independently. When an NGO requires towards applying for both independently, then, it requires applying for registration u/s 12A, first. Getting 12A certification is a prerequisite towards applying for getting 80G registration as per the Income Tax Act, 1961.