Trusts are one of the types of non-government organisations that work for charitable purposes in India. Trust Registration has been provided to such types of entities under the Trusts Act of 1882. There are two types of trust that includes private trust and public trust. Public trusts are organisations that are working for charitable purposes. Mostly, non-government organisations like trusts are running on the basis of the donations they are getting. Similarly, trusts are also running through the donations they are getting. To promote donations to non-government organisations, the government gives tax deductions to the donors. But to get the benefit or advantage of tax deduction under the Income Tax Act of 1961, it is mandatory to have an 80g registration for trust in India. Under the Income Tax Act, there are two types of benefits that are 12a and 80g registration. But the current blog will discuss the 80g registration in detail.
What is 80g Registration?
Whoever donates to any non-profit organisation like a trust gets the benefit of tax deduction under the Income Tax Act, but to get that benefit, the NGO needs to register itself with the Income Tax Department, and that registration is known as 80g Registration. This registration will be given in the form of certification in two steps. Within 8-10 working days after the application is submitted for the same registration, one will get the provisional registration certificate. Within six months of getting provisional registration, one needs to apply for the final registration from the same department. This is how one can get 80g registration for trust in India.
Eligibility Criteria to get 80g Registration
To get 80g registration for trust in India, it is mandatory that a trust falls under the given criteria:
- Trusts that are taking the 80g registration must not have any income from any kind of business
- It must be an organisation that is working with a charitable purpose or objective
- Cannot use the assets of the trust other than the charitable purpose of the trust
- For trusts, it is necessary to maintain books of accounts that can show the receipt of the donation
- The amount of donation must not be used other than the objective or purpose of the trust
What is the Procedure to get 80g Registration for Trust?
To get 80g registration for trust in India is not an easy task. There is a multi-stage online procedure that one needs to complete to get this 80g registration for trust. The entire process must be done without any mistakes to get the registration certificate. Follow the steps given below to get hassle-free 80g registration in India:
Collect Required Documents
In the entire process of getting the 80g registration, documentation plays a very important role. Without the proper documents, one cannot get this registration. Hence, before starting the registration process, one must collect the following documents:
- KYC documents of all the trustees, beneficiaries and authors of the trusts. KYC documents include aadhaar card and PAN card of all the trustees, beneficiaries and authors of the trusts
- Collect one passport-size photograph of all the trustees, beneficiaries and authors of the trusts
- Business address proof of the registered trust that must be registered under the Trust Act of India
- Incorporation certificate of the registered trust that must be registered under the Trust Act of India
- Details of the authorised signatory of the registered trust that must be registered under the Trust Act of India
- Details of assets and liabilities of the registered trust that must be registered under the Trust Act of India
- Income details of the trust will be required at the time of the registration
- Details of the income received by the trust in the last three preceding years
- PAN Card of the trust that must be registered under the Trust Act of India
- List of the donors of the trust registered under the Indian Trust Act
- A copy of Form 10A is necessarily required
- Book of accounts of the trust
Online 80g Registration Process for Trust
Follow the steps given below to get 80g registration for trust in India:
- Visit the website or portal of the Income Tax department and create Login credentials
- Login through the same credentials on the official website of the Income Tax department
- Click on the option of “e-file” and then choose the “Income Tax Forms” option.
- After clicking on the “Income Tax Form”, choose the “File Income Tax Form” option.
- Out of the various options available, choose “Person not dependent on any source of Income.”
- Select Form 10A out of the various forms available after clicking on the “Person not dependent on any source of Income.”
- Fill in the assessment year and click on the option of Continue button, and then click on the “Let’s get started” option
- Now fill in all the required details for the 80g registration for trust and complete the e-verification process
- After completing the e-verification process, submit the form
- After that, the department will verify your application, and if you find everything is up to the mark, you will get the provisional 80g certification for the trust.
- Before completing the six months after getting the provisional registration, one also needs to apply for the final registration certificate under 80g for the trust.
Conclusion
Obtaining an 80g registration for trust in India is a crucial step for non-governmental organisations that rely on donations to carry out charitable work. This registration allows donors to claim tax deductions under section 80g of the Income Tax Act of 1961. Without this registration, trusts would miss out on potential financial support, and donors would not be able to avail of tax benefits. To be eligible for 80g registration, a trust must meet specific criteria, including having a charitable purpose, not generating income from business activities, and using donations solely for the trust’s objectives, etc. 80g registration is a vital requirement for trusts in India, facilitating both their mission and donor support through tax benefits. While the process may seem intricate, it is manageable with the proper documentation and online application.
