Registration under section 35AC

INTRODUCTION

The Central Government approves certain NGOs and notifies them as eligible for project or schemes for the purposes of section 35AC. If an NGO succeeds in getting such an approval for its projects then it stands a very good chance of mobilising funds from the corporate and the business sector. Business houses making contribution to such approved projects are allowed the benefits of deducting such contribution as expenditure.

 

 NATIONAL COMMITTEE

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.

 

Documents Required

1. Company:

A. Memorandum of Association and Articles of Association with Certificate of Incorporation in case of Pvt Ltd Company
B. Particulars of Directors/ Members- Telephone No ,Address, email Id
C. List of Board of Directors with their residential address and telephone number
D. Pan card of company
E. Three photos of directors and member

 

2. Society

A. Memorandum of Association and Bye Laws with Certificate of Incorporation of Society
B. Particulars of President and Members of society
C. Pan card of society
D. List of Board of Directors with residential address and telephone number
E. Address proof of president and members.

 

3. Proprietor

A. Pan card of the applicant
B. Certificate of Incorporation of proprietorship.
C. Enter details like address, marital and occupational status of the applicant, the district/ ward circle
D. Address proof of proprietor like driving license, election card, voter Id card.

 

4. Trust

A. Pan card of Trust
B. Trust deed in case of a Trust
C. Memorandum of Association and Rules and Regulation of Trust
D. Particulars of trustees – address and telephone number
E. Three photos of trustees.
F. Address proof of trustees like driving license, election card, voter id card of trustees

 

5. Common requirement

A. The application for approval by the National Committee should be made to the Secretary, National Committee for Promotion of Social & Economic Welfare, Dept. of Revenue, Govt. of India, North Block, New Delhi – 110001.
B. The application is to be made in 2 Sets, written either in Hindi or English.
C. Audited Balance Sheet, Profit& Loss Account or Income& Expenditure Account for the latest year and two preceding years.
D. 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.
E. 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.
F. 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.
G. The National Committee may recommend or reject the project but when the approval is recommended then it is for a period of maximum 3 years and it could be further extended if the National Committee is satisfied with the performance during the period.
H. A certificate has to be issued to the donor in Form 58A. This certificate will enable the donor to claim exemptions.
I. The National Committee may withdraw the approval if the project is not carried out in accordance with the approved conditions. To withdraw a project National Committee should provide an opportunity of being heard to the aggrieved organization.
J. Section 35AC provides deduction from income from business and profession. Similar deduction is also available u/s. 80GGA, for assesses having income from other heads.
K. Such other information as the association or institution may like to place before the National Committee.

ADDITIONAL INFORMATION REGARDING THE PROJECT/ SCHEME To BE SUBMITTED

  • Title of project or scheme
  • Date of commencement;
  • Duration and the likely date of completion.
  • Estimated cost of the project
  • Amount of contributions.
  • Total amount of contribution received during the year
  • 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
  • Such Annual Report should reach the National Committee by 30th June, following the financial year in which the amount is received.