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:-
- 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.
- Construction of school buildings primarily for children belonging to the economically weaker sections of the society.
- Establishment and running of non-conventional and renewable sources of energy systems.
- Construction and maintenance of bridges, public highways and other roads.
- Establishment and running of educational institutions in rural areas, exclusively for women and children up to 12 years of age;
- Establishment and running of hospitals and medical facilities in rural areas, exclusively for women and children up to 12 years of age;
- Construction of hostel accommodation for women or handicapped individuals or individuals who are of the age of sixty-five years or more;
- Establishment and running of institutions for vocational education and training in rural areas or towns which consist of population of less than 5 lakhs.
- 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.
- Any programme of conservation of natural resources or of a forestation.
Information Required for 35AC Registration
- Title of project or scheme;
- Date of commencement;
- Duration and the likely date of completion;
- Estimated cost of the project ;
- Category or class of persons who are likely to be benefited from the project or scheme;
- 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