80G for NGO / Society and Trust

Section 80G of the Income Tax Act enables an Income Tax Payee to claim deduction for donation made by them to certain organization. This deduction is subject to certain conditions.

The amount of deduction depends on–

• To whom the donation has been made.
• The amount of donation. They are exempted from 100% to 50% of the amount of donation.

Charitable organizations/associations such as Society, Trust, etc can apply to the Department of Income Tax for registration under the provision of 80G in a prescribed form. NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The application should be made as early as possible just after the registration of the given organization. For renewal of 80G registration the same form can be used. The Income Tax Act has certain provisions which offer tax benefits to the “donors”. All NGO’s should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections.

Registration under 80G:

If an NGO gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income. The NGO has to apply in Form No. 10G As per Annexure – 29 to the Commissioner of Income Tax for such registration. Normally this approval is granted for 2-3 years.

The company has vast & varied experience in conducting all types of Audits for large & medium sized business entities. The Company also has the expertise to prepare financial statements not only in accordance with international accounting standards (IAS) but also in compliance with the generally accepted accounting principles (GAAP) especially US-GAAP. Our Internal/Management audits focus on:

• Critical evaluation of internal controls adopted by organizations and suggesting areas for strengthening
  Review of existing business processes, policies and practices with a view to suggest best practices, including a thorough benchmarking exercise.
• Review of Risk Management Framework and its effectiveness with a view to provide suggestions for strengthening the same.
• Constructive review of operations by keeping the client’s business needs in focus
• Identification and recommendation of areas for cost reduction, revenue optimization and improvement in operational efficiency followed by assistance in their implementation
• Providing result oriented and practical solutions followed by support for its implementation
• Confirmation of proper compliance with the various regulatory provisions and operational manuals
• Assisting in meeting the clients’ Corporate Governance requirements

Our Services Includes

• • Complete outsourcing of internal audit function
  • Compliance with management controls
  • System and process improvements
  • Financial impropriety and fraud audits
  • Due diligence for acquisitions and investments
  • Co-sourcing and supplementing internal audit function along with the existing capabilities of the client organization
  • Deputation of personnel to strengthen the internal audit function of client organization
  • Conducting concurrent audits with dedicated teams for more focused transaction audits as well as on-line auditing/pre-payment audits
  • Conducting operational audits through review of business operations, activities, etc
  • Conducting special purpose investigative audits
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Our emphasis is on ensuring strong internal control systems to minimize the risk of accidental or deliberate errors and omissions. Safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas of our procedures. Our objective is to ensure that resources of the organization are optimized to deliver maximum possible value.

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