Why 80G and 80GGA Registration Is Crucial for NGOs in India
Non-Governmental Organizations (NGOs) have become very crucial in meeting social, educational, environmental and humanitarian issues in India. They are service oriented though financial sustainability is an issue. In order to promote true charitable activity, specific tax incentives are given by the income tax act, 1961 in the form of section 80g and section 80gga. In the case of ngos, registration by these provisions is not a procedural exercise but also a strategic need that has a direct influence on funding, credibility and future expansion. Knowledge of 80g and 80gga Registration What Is Section 80g Section 80g of the income tax act enables the donors to take deductions on the donations to the qualified charitable organizations. The ngos operating under this category are able to provide the donor with the deduction on the amount to be donated against a set limit and requirements. This is an important provision that promotes the philanthropic donation by the individuals and corpora...