Registration under section 80g

Darpan Id is a mandatory requirement

It is mandatory for organisations requesting registration or revalidation under the revised requirements of section 80g to provide information about their registration number on the Niti Aayog website.

This is also required when the applicant organisation has received or plans to obtain grant funding from the federal government or a state government.

Issuance of Certificate

The PCIT or CIT shall issue a written order approving the application in Form No. 10AC and provide the applicants with a sixteen-digit alphanumeric Unique Registration Number (URN) upon receipt of the application under 10A. If necessary, the PCIT/CIT may also request more documentation from the applicant. Alternatively, they may decide to reject the application after giving the applicant a chance to be heard. Form No. 10AC will also be used to pass the rejection order. According to the new provisions of the legislation, as modified by the Finance Act 2020, the NGO's registration shall remain in effect.

So, you should see the matter on 80g deduction.

After receiving an application under 10AB, the PCIT or CIT shall issue an order of registration, rejection, or cancellation in Form No. 10AD. If registration is allowed, the PCIT or CIT shall also issue a sixteen-digit alphanumeric number URN. Additionally, in this situation, PCIT/CIT has the right to request more information from the applicant in order to confirm the validity of the trust or institution's activities and its adherence to any other laws currently in effect that are necessary for the trust or institution to fulfil its objectives.

Benefit amount

There is a cap on how much the donor may get in benefits. If the deduction to a charitable organisation or trust exceeds 10% of the Gross Total Income calculated under the Act (as reduced by income on which revenue is not payable under any provision of this Act and by any sum with respect to which the taxpayer is entitled to a deduction under any other provision of this Chapter), then the excess over 10% of Gross Total Income shall not qualify for deduction under section 80g.

In other words, the entire amount of donations must be determined before calculating an assessee's total income or determining the amount that qualifies as deductible under Section 80g. It is necessary to determine the 50% of such gifts, which should be kept to 10% of the overall annual revenue. If this sum is greater than 10% of the gross total revenue, the excess must be disregarded.

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