35AC Registration Process and Benefits

Non Government Organizations are formed for the welfare of the society and socio – economic growth of the country. But welfare activities and socio economic growth is not possible without adequate funds. NGO can get funds from various sources like Government Funding, Corporate Funding, Foreign Funding, FCRA & Individual Donors. In order to get funding every NGO should get their Trust or Society registered under 12A, 80G and 35AC. In case of 12A, 80G a donor or a Funding agency who donates fund will get a benefit of 50% Tax Exemption of the total donated amount. FCRA registration will help them to get funds from foreign countries or foreign agencies who contribute funds for social development. To know about FCRA please follow our last blog on FCRA. Today our blog is all about 35AC Registration, Benefits etc.

Unlike 80G certificate 35AC is not given to any organization as a whole, but it is given to only eligible and approved organizations. The best part of 35AC is that a donor gets 100% tax exemption. But the amount donated must be towards an approved project or scheme.

These are some of the projects which are eligible for approval:-

1. Construction and maintenance of drinking water projects in rural areas and in urban slums, including installation of pump-sets, digging of wells, tube wells and laying of pipes for supply of drinking water.
2. Construction of school buildings primarily for children belonging to the economically weaker sections of the society.
3. Establishment and running of non-conventional and renewable sources of energy systems.
4. Construction and maintenance of bridges, public highways and other roads.
5. Establishment and running of educational institutions in rural areas, exclusively for women and children up to 12 years of age;
6. Establishment and running of hospitals and medical facilities in rural areas, exclusively for women and children up to 12 years of age;
7. Construction of hostel accommodation for women or handicapped individuals or individuals who are of the age of sixty-five years or more;
8. Establishment and running of institutions for vocational education and training in rural areas or towns which consist of population of less than 5 lakhs.
9. Establishment and running of institutions imparting education in the field of engineering and medicine in rural areas or towns which consist of population of less than 5 lakhs.
10. Any programme of conservation of natural resources or of a forestation.

Information Required for 35AC Registration

1. Title of project or scheme;
2. Date of commencement;
3. Duration and the likely date of completion;
4. Estimated cost of the project ;
5. Category or class of persons who are likely to be benefited from the project or scheme;
6. Affirmation that no benefit from the project or scheme other than remuneration or honorarium, will accrue to persons managing the affairs of the NGO.

All approved NGO’s are required to issue a tax exemption certificate in Form58A to donors for all donations received under 35AC.

Please contact us for more details. BR NGO Consultancy, Phone - 7503145802