35AC REGISTRATION (TAX REGISTRATION)

35AC Registration/ 35 AC Project

Government of India had approval Tax Deduction under section 35AC the Income Tax Act (Presently Finance Act). The donors can get tax rebate of 100% and more in the section 35AC and subsections of Finance Act. This helps a NGO to have potential donors. The entire section of 35 AC is one such useful benefit that could be availed by a NGO to support their donors. This makes the donors save their tax through the donation that they offer to the Non-Government Organizations (NGOs).

If a NGO succeeds in getting an approval like this, then it stands a very good chance of mobilizing funds from the business and corporate sector. Business houses offering contribution like these are approved with projects which are allowed the benefits of deducting such contribution as expenditure. So there are many NGO who take the advantage of this to attract donors who want to be of help to a cause but generally do not move their first step because they do not receive any benefits from the Income Tax dept. A 35AC registration is crucial for those NGOs who have a large number of corporate donors. This makes their NGO more reachable and more spread out in a society.

There are ways in which the entire application procedure is done along with submitting the supporting documents which is provided to the department with two set of application. There are consultants of ARE NGO consultancy who would be there to help NGOs in this regard. A National Committee has been constituted by the Central Government to identify the projects and the schemes that can be notified under section 35AC. Such a committee normally consists of well-known person. All NGOs can to apply to the National Committee to get their projects or their schemes approved. Thus, any organization can draw the benefits of 35AC Registration.

Rebate in 35 AC is not applicable so New Applications are not being accepted

According to the Present order of Central Board of Direct Taxes (CBDT) the approval beyond 31 March 2017 under section 35AC of the Income Tax Act shall not be considered or entertained; that means the 35 AC deduction shall not be applicable. So presently CBDT is not accepting new Registrations US 35 AC to get tax rebate.

You can check the revocation detail and order here: REVOCATION ORDER FOR 35 AC

https://ngosindia.com/ngo-resources/ngo-and-government-of-india/income-exemption-us-35ac-revoked/