Registration u/s 35AC:
NGO can register itself u/s 35AC from the Central Government of India. Potential donors get 100% exemption for the amount donated towards 35AC.
Contributions made to a project/scheme notified as an eligible project or scheme for the purpose of section 35AC of the Income Tax Act, would entitle the donor to a 100% deduction of the amount of such contribution. Eligible projects and the schemes for exemption u/s 35AC include one or more of the following:
1. Construction and maintenance of drinking water projects in rural areas and in urban slums, including installation of pump-sets, digging of wells, tube-wells and lying of pipes for supply of drinking water.
2. Construction of dwelling units for the economically weaker sections.
3. Construction of school buildings, preliminary for children belonging to the economically weaker sections of the society.
4. Establishment and running of non-conventional and renewable source of energy systems
5. Construction and maintenance of bridges, public highways and other roads.
6. Pollution control projects.
7. Promotion of sports.
The Central Government has constituted a National Committee to identify projects and schemes to be notified under section 35AC, such committee normally consists of eminent persons. All NGOs are entitled to apply to the National Committee to get its projects or schemes approved.
The application is to be made in 2 Sets, written either in Hindi or English to the:
National Committee for Promotion of Social & Economic Welfare,
Dept. of Revenue,
Govt. of India,
New Delhi – 1100012
The Application has to be submitted along with following documents:
1. Copy of registration certification;
2. Trust Deed /Certification of incorporation of company;
3. Copy of resolution passed by the Executive Body of Trustees/Company to undertake the work u/s 35AC of the Income Tax Act-1961;
4. Audited Accounts for the last three years;
5. Pattern of the proposed project and extent of Government grants /foreign aids likely to be available for the proposed project in next 3 years.
6. Location of project & date of commencement and completion;
7. Income criteria for selection of beneficiaries / concessional treatment of a patient belonging to poor/weaker Section of the Society;
8. Concession in fees etc. for training of poor/weaker section and assistance /equipments provided to the beneficiaries for Income generation activity;
9. Normal and subsidised fees pattern adopted by the Institute.
10. Blue prints alongwith professional cost estimate in support of construction activities if any;
11. Information regarding maintenance aspect of proposed project.
12. Information regarding recognition of school/ vocational training centre / Laboratory Technician training center etc. from the concerned Education / Technical Board;
13. Detailed break-up of recurring and non recurring expenditure on the project and provision for meeting them/ Estimated cost (with break up).
14. Area to be covered by Medical camps, other camps etc.
15. Information regarding availability of land/necessary infrastructure to execute the project;/land documents (to be enclosed);
16. Expenditure incurred as on date on the proposed project. This is to be noted that Application should be made for the same activity which the Trust is aleady running, otherwise it will be rejected.
17. Status Report for the projects approved earlier by NC, if any;
18. Extent of freeship/reservation available to beneficiaries belonging to economically weaker sections of the society. The National Committee approves projects on the satisfaction of the condition that freeship is provided to at least 50% of the beneficiaries who earn Rs. 18,000/- or less in a year. In case this is to be followed by your Institution/ Trust, a Resolution adopted by the Institution/Trust to this effect may be furnished;
19. Project Report in a focused manner.
20. Bio-data of Trustees with present & past activities.
21. Prescribed Form/Signatures of Trustees with seal of the Organization on last page of the Form;
22. Activities /Annual Reports;
23. 80G approval, if any;
24. FCRA approval, if any;
25. Please specify the clause of Rule 11K of IT Rules 1962 under which the proposed project qualify for approval.
26. English version of documents, which are in regional language.