80G Certificate for Trusts and Societies: Complete Compliance Checklist

The 80G certificate is a powerful tax-saving tool for donors contributing to charitable organisations. Issued under Section 80G of the income tax act, it enables donors to claim deductions on the amount donated to eligible trusts and societies. However, for trusts and societies to be eligible, they must meet specific compliance requirements and follow the prescribed registration process. Here is a comprehensive checklist to help you obtain the 80G certificate efficiently and stay compliant.

Why Is the 80G Certificate Important?

The 80G certificate not only helps your organisation attract more donations by offering tax benefits to donors but also builds credibility and trust. Many CSR-funded projects and individual donors prefer contributing to institutions that hold valid 80G registration.

Eligibility Criteria for 80G Certificate

Before applying for the certificate, ensure that your trust or society:

• Is registered under the Societies Registration Act, 1860, Indian Trusts Act, 1882, or a similar state act.

• Operates for charitable purposes such as education, relief of the poor, medical relief, or other public welfare causes.

• Does not use income or assets for purposes that benefit specific individuals or founders.

• Is not involved in any commercial activity, and if so, the activity is incidental and funds are used for charity.

• Has a proper bookkeeping system and is transparent in its financial dealings.

Documents Required for 80G Certificate

Prepare the following documents while applying:

1. Registration certificate of the trust/society.

2. PAN card of the organisation.

3. Memorandum of Association/Trust Deed.

4. NOC from the landlord if office premises are rented.

5. Details of trustees or managing committee members.

6. Annual reports of the past three years.

7. Audited financial statements for the last three years.

8. Activities report and proof of charitable work.

9. Existing registration under Section 12A (if applicable).

Step-by-Step Process to Apply

1. Register on the Income Tax Portal and log in using the organization's PAN.

2. Navigate to "Income Tax Forms" > "Form 10A" for new registration under 80G.

3. Fill in required details and upload scanned documents.

4. Submit the application using digital signature or EVC.

5. Wait for verification by the tax department. They may ask for clarification or conduct an inspection.

6. Upon successful verification, you will receive the 80G certificate, which remains valid for a prescribed duration.

Post-Registration Compliance

Once you receive the 80G certificate, your trust or society must:

• File annual returns and audit reports regularly.

• Maintain updated records of donations and donor details.

• Ensure that donations are used only for registered charitable purposes.

• Display the 80G certificate on your website or premises (recommended).

Conclusion

Obtaining an 80G certificate can significantly enhance your organisation's fundraising capability by offering tax benefits to donors. However, it requires strict adherence to compliance norms and timely documentation. By following this complete checklist, trusts and societies can ensure a smooth application process and long-term benefits from 80G registration.