Requirements
All The Documents of NGO.
Photos of activities done by NGO.
Resolution for the FCRA Registration.
THE 35AC APPLICATION AND ITS ENCLOSURE
The application is to be made in 2 Sets, written either in Hindi or English.
Details such as name, address and status of applicant, the district/ ward circle where assessed/PAN number.
Audited Balance Sheet, Profit & Loss Account or Income & Expenditure Account for the latest year and two preceding years
How is it constituted i.e. whether as a trust, society, etc. supported by relevant documents like trust deed, rules & regulation, memorandum of association etc. and registration certificate, if any.
Name & Addresses of the persons managing the affairs of the association or institution, including those who left the organization but were managing the affairs of the association or institution during the 3 years preceding the date of application.
If the association or institution is notified under section 10(23) (C) or is approved for the purposes of section 80G, the particulars of such approval granted.
Brief particulars of the activities of the association or institution during 3 years preceding the date of application or since inception if the association or institution is less than 3 years old.
Such other information as the association or institution may like to place before the National Committee.
ADDITIONAL INFORMATION REGARDING THE PROJECT TO BE SUBMITTED
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;
Such other particulars as the applicant may place before the National Committee.
35 AC Project
Importance of Sec 35 AC of the Income Tax Act
Non-Governmental Organizations are eligible for claiming exemptions under the income tax act but for this the Non-Governmental Organization has to get itself registered. Here the Organization is getting the benefits but the donors are not getting any benefits here comes the section 35AC in the limes light which provide all the benefits to the donors giving donations to the Organizations.
If there is an approval to any organization from the Central Government in respect of any particular project or scheme then the Organization has a large area of bringing in funds for the project from different business enterprises.
They won’t be facing any problem in bringing in funds as the business unit will be eligible for claiming the deduction under section 35AC for the amount paid to the Organizations as donations for any particular project or scheme.
In order to get any scheme approved by the central government the organization has to apply to the National Committee which was originally created to determine the projects or scheme that could come under the application of section 35AC. There is no restriction for any Organization to get its project approved; all the organizations can apply to the National Committee for any approval of the project or scheme.
“A certificate has to issue to the donor for claiming deduction under section 35AC” General obligation regarding the application for getting any project or scheme approved is that the company has to apply to the committee in two sets and in either of the languages that is Hindi or English and the application should consist of all the information regarding the organization like name of the organization, status of the organization its ward along with the PAN of the Organization. Along with the application the organization has to submit to the Committee its latest Audited Balance Sheet and the Balance Sheet of the last two years. The organization has to provide clarification as to how it was form, whether in respect of any trust or society along with the proof like the deed of the trust, rules and regulation or any certificate of registration. There are many other formalities that the organization has to comply along with the application for getting the project approved. All the information regarding the project should be incorporated in the application such as title of the project, commencement date, total amount to be contributed in the project along with the estimated time to be taken in completion of the project.
“There are many formalities to be complied with to get a project approved”.
Section 35AC is available to persons who have income under the head “Income from Business or Profession” but the persons not having income under the head are going to get the deduction under section 80GGA which generally provides for the donation made to these organizations. Here total deduction is available in respect of the amount paid as donation subject to the availability of the Income for claiming deduction as it cannot be carried forward as in case of Section 35AC.
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