SECTION 80G (IT ACT) & IMA !

IMA IS A SOCIETY  and  NOT FOR PROFIT ORGANIZATION. so every local IMA branch across india can be registered as a society under society act and could apply for section 80G & 12A. 

its advisable that every local branch to have its own building to conduct CME programs and other cultural and social responsibility causes. 

There is a notion that IMA is rICH MEN'S pOOR ASSOCIATION! EVERY IMA member should contribute&make this notion wrong.

IMA is a  SOCIETY FOR WELFARE OF ITS MEMBERS AND ALSO PUBLIC WELFARE.

HEALTH&well being, health education, vaccination and research,medical education ,support and security are some of its objectives. 

 

 Section 80G Registration : Section 80G Registration under the Income Tax Act, 1961 is provided to organisations working not for profit like SOCITIES,NGOs, charitable trusts, religious organisations, Section 8 companies. The main aim of this certificate is to encourage donors to provide donations. The donors making such donations are eligible to avail tax reductions. All they have to do is attach the receipt of the donation made, with information as to the name of the donor, date of donation and PAN of the organisation, to avail the exemption.

There are some crucial documents which are required to be provided while applying for Registration under Section 80G namely:

• Documents evidencing the creation of the trust or organisation (trust deed or any other instrument, certificate of incorporation, copies of MOA and AOA for Section 8 companies, MOA and registration certificate for societies)
• Copy of PAN of the organisation
• Form 10G
• No Objection Certificate (NOC) from the owner of the property where the registered office is situated
• Copy of the utility bills of the organisation
• List of donors with details of their address and PAN
• documents related to the book of accounts and income tax returns
• Details of welfare activities carried out by the organisation within the last 3 years
• Where the organisation is a trust, there is a detailed list of the board of trustees.

Benefits Of Obtaining Registration Under Section 80G – The direct beneficiary under 80G is the donors of these organisations, while the organisations also benefit as these benefits fuel ore donors to make sizeable donations to these non-profit organisations. The benefits arising under the 80G certificate are as follows:

• Tax exemption to donors

The donor is eligible to deduct a portion of the amount donated to these organisations from his/her taxable income.

• Increase in goodwill and credibility of the organisation

80G certificate gives legitimacy and credibility to the organisation and hence helps in increasing its goodwill, which will further encourage more donors to donate.

• Government funding

NGOs and other charitable organisations with 80G registration are likely to receive more government funding and international contribution.

Eligibility to obtain 12A and 80G registration

Registrations under Section 12A and 80G are provided to NGOs, charitable organisations, trusts and societies if they fulfil the following conditions:

1.     No income must be generated from the business.

2.     These organisations should either be charitable or trust or registered societies or Section 8 companies.

3.     These organisations must be using their assets or income only for the purpose of charity.

4.     They should maintain a regular book of accounts of the activities of the organisation

5.     The owners or trustees should not be deriving undue benefits from the organisation’s funds.

6.     The work should not be related to the benefit of particular religion or caste.

7.     If these organisations have income generated from any business, there should be a separate book of accounts for the same, and any donations received for charitable purposes shall be kept separate.