NGO Compliance

Which registration is needed for an NGO to be exempted from the payment of income tax?

• 12A
• 10A

• 80G

• 12A & 80G both

Answer explanation

• 12A registration is a one-time registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation.

What is the expiry of a Registered Trust?

• 5 years

• No Expiry

• 10 Years

• Depends on the State law

Who regulates charitable societies registered under Societies registration Act?

• Registrar of Societies - State Govt

• Ministry of Corporate Affairs

• Registrar of Societies - Central Govt

• Directly under State Govt

Answer explanation

Societies are membership organizations that may be registered for charitable purposes. They are usually managed by a governing council or a managing committee and are regulated by the Societies Registration Act which has been modified and adopted by various states. Unlike trusts, societies may be dissolved.

What is the expiry period for Sec 8 Companies?

• 5 years

• No Expiry

• 3-7 years varies from State to State

• 15 years

What FCRA Stands for?

• Foreign Contribution Registration Act

• Foreign Currency (Regulation) Act

• Foreign Contribution (Regulation) Act

• Foreign Contribution Regulation Association

80G signifies for what % of exemption to Donors?

• 50% only

• 50% or 100%

• Up to 50%

Answer explanation

The deduction under section 80G can be claimed on the amount donated to eligible institutions or funds. The deduction can be claimed up 50% or 100% of the donated amount, depending on the institution or fund to which the donation has been made.

Who is eligible to claim deduction under Section 80G? Choose the correct Option

• The following taxpayer can claim a deduction under this section: Individuals ,Companies ,Firms , Hindu Undivided Firm (HUF), Non-Resident Indian (NRI), Any other person

• The following taxpayer can claim a deduction under this section: Individuals ,Non-Resident Indian (NRI), Any other person

• The following taxpayer can claim a deduction under this section: Individuals ,Companies ,Firms , Hindu Undivided Firm (HUF),

Answer explanation

Eligibility to claim deduction under Section 80G

The following taxpayer can claim a deduction under this section: 

• Individuals 

• Companies 

• Firms 

• Hindu Undivided Firm (HUF)

• Non-Resident Indian (NRI)

• Any other person

However, all donations are not eligible for deductions under Section 80G. Only donations made to prescribed funds qualify as a deduction. 

Deduction under 80G is not available if an individual taxpayer opts to pay taxes under the new tax regime (115BAC). True or False ?

• TRUE

• FALSE

Expiry period for Charitable Societies?

• 5 years

• 1-5 years for some States & No Expiry in most States

• No Expiry

• Depends on the Charitable Societies Will

Section 8 /25 companies are regulated by which entity?

• Respective State Govt

• Ministry of Corporate Affairs - Central Govt

• Ministry of Commerce

• Income Tax Department