For NGOs in India, staying compliant with tax regulations is key to maintaining credibility and funding opportunities. Two important registrations under the Income Tax Act-Section 12A and Section 80G-play a vital role in this.

The ITAT ruled on a case involving Gujarat State Financial Services Ltd. regarding a ₹3.57 crore CSR donation to the Mukhyamantri Shree Swachchta Nidhi Gujarat. Initially, the assessee claimed a deduction under Section 80G, which the authorities disallowed, stating CSR donations were not eligible. However, the Tribunal found the donation qualifies under Section 80G and allowed the deduction.

The ITAT decided that a charitable society registered under Section 12A can still get tax exemption, even if it has a surplus from operations. The society, which runs eye hospitals, reported no income for 2017-18. The AO saw a surplus of 31.29% and classified it as taxable. However, the Tribunal concluded that the main activity was eye care, qualifying it for exemption, since it met the 85% application requirement.

The assessee, registered under Section 12A, applied for 80G approval under Section 80G of the Income-tax Act. The trust received school bus, tuition, and exam fees, but the Commissioner rejected the application, stating the receipts were not valid donations.

The High Court ruled that a statutory authority, recognized as a charitable institution under the Income-tax Act, was not covered by Section 2(15)Proviso for statutory development work done without profit motive. The assessee filed a nil income return for 2014-15, but the Assessing Officer added ₹21.62 crore, stating the first proviso was applicable.

Not-for-Profit Organizations (NPOs) are at the forefront of driving meaningful change. In their mission to build a better world, principles like accountability, transparency, and impact are not just expectations, but guiding principles. Earning the trust of donors, boards, regulators, and communities is both a privilege and a responsibility. Amidst this noble pursuit, Internal Audit stands out as a transformative tool. It not only strengthens systems and safeguards integrity

Lessons from working with 100+ NGOs at over the last 15 years at Aria CFO Services.

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The assessee was a public charitable trust registered under Section 12A of the Income-tax Act, 1961 (IT Act). Its primary charitable activit

The assessee, a public trust, applied for registration under Section 12A of the Income-tax Act, 1961 on February 6, 2006.

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