80G Licenses
80G is a certificate that exempts you part or fully from paying taxes, if you have made donations to charitable trusts or section 8 company or organizations that are registered to offer you exemptions from taxes. For e.g. A charitable organization or trust registered under section 12 A, allows you to avail tax exemption under section 80G. There is however a maximum allowable deduction criteria. The criterion is if the aggregate of the amount you donate exceeds 10% of the total gross income, then the excess amount will not qualify for tax benefit. 80G certificates made its way into law book in the year 1967-68 and it continues to be an important tax saving certificate.
Documents Needed
The application can only be made by a public charitable trust, registered society, recognized educational institution or an institution funded by the Government.
The trust/institution applying for the certificate must be duly registered under the Societies Registration Act, 1860; or Section 25 of the Companies Act; or any other relevant Acts.
Applicants of the certificate must not represent any religion based or caste and creeds based activity.
The respective trust/institution should only utilize the donated funds for charitable purposes.
The registered trust/institution should not hold any income which is not exempted.
Entity's pursuing any other businesses are required to maintain a separate account, so that the donations received are not confused with savings of any other kind.
The applicant should have maintained the appropriate annual returns, accounting and book keeping before applying for the certificate.
The recipient of the certificate must ensure the timely renewal of certificates, so as to receive the eligible tax benefits.