We work by a code
Member Travel Policy & Forms
Those travelling on official Lions Clubs International (LCI) business must follow the prescribed LCI protocols. For information on travel policy and forms that must be completed, please click here. If you have any further queries about this, please call 011-2301 9974, 011-2301 9975 or fill in this form.
Play it by the rules
Helping people in need is a noble cause and can be carried out in different ways. You could join our club or start a charitable trust that will help the underprivileged.
If you want to form a
please read more information below.
Formation & Registration of a Charitable Trust
- A Trust is created by the Founder (author or settler) with a close group of persons called the Trustees (who are the body of Trust).
- A Trust should be registered with a "Registered office address of the trust" with proper landmarks.
- The Trust is created with a document named as a Trust deed.
- The Trust Deed is the only prima facie evidence for the existence of trust; it also simplifies devolution of trust property.
- The written trust and trust deed is essential for registration towards conveyance of Immovable property.
- It clearly defines the Objects of the Trust and is useful to control, regulate and manage the works and operations of the trust.
- It spells several procedures for appointment and removal of the trustees, and their powers, rights and duties.
- There are several procedures for creation of a trust deed. One needs to take the assistance of Chartered accountants (Auditors) and Lawyers (Attorney) to draft the Trust deed. After creation of Trust deed, That TRUST shall be registered with the Registrar or Sub-registrar office as per the laws relevant to the specific states.
- After the registration of trust, you can apply for PAN card, and you have to apply for proper Income tax registration with Income tax department (Here the 12 A plays the role).
- After you have received the Income tax certificate for the Trust (12A), you can also apply for tax exemption certificates like 80G, 35AC and other forms of income tax exemption as per the objects of your trust and as per the applicable rules
- A trust shall be a public charitable trust or Private trust. Public charitable trust is able to raise funds from public to serve the social causes of the nation.
- A trust must be registered whether with movable or immovable properties.
The Foreign Contributions Regulations Act 1976 or FCRA
FCRA is a law of Government of India which regulates receipt of foreign contributions or aid from outside India to Indian Territory. This is to ensure that the aid does not affect political or any other situation in India. For genuine donation the provision of the law is not difficult to comply. The regular compliance is limited to filling of Annual Return every year. This law is enforced by the Ministry of Home Affairs, Government of India.
- Organizations with a definite cultural, economic, educational, religious or social programme can accept foreign contributions. However, to do so they have to register themselves with the Central Government under section 11 of the FCRA Act.
- To be so registered with the government the organization must be in existence for a period in excess of 3 years. The funds so received by the organisation must be used only for the specific purpose for which they were received.
- To receive FCRA registration an application has to be made in the prescribed format with the Ministry of Home Affairs (MHA) as per the specified norms. The application is to be either approved or rejected within a period of 90 days. Registration once granted shall be valid for a period of 5 years.
- When Applying for FCRA Registration, the NGO has to open a separate Bank account which will be linked to your FCRA Reg. certificate and will be used only for Foreign Inward Remittance.
- You need to maintain accounts in separate books and file timely returns to avoid penalties & punishments towards any violations of the FCRA Act
Exemption for NGO under section 80 G
- As per Section 80G of the Income Tax Act, donations paid or given to any institution or fund established in India for a charitable purpose is eligible for deduction (normally 50%) in the hands of the donor subject to the following conditions:
- The income of the institution is exempt under section 11 or 10(23) or (23AA) or (23C) of the Act.
- The funds of the institutions are applied only for charitable purposes.
- The institution should not be for the benefit of any particular religious community or caste.
- The institution maintains regular accounts of its receipts and expenditure.
- The institution shall be approved by the Commissioner of Income Tax.
- Section 80G applies to donations given to any institution or fund, only if it is established in India for a charitable purpose and if it fulfils the following stipulated conditions.
- he instrument under which the institution or fund is considered does not, or the rules governing the institution or fund do not, contain any provision for the transfer for at any time of the whole or any part of the income or assets of the institution or fund for any purposes other than a charitable purpose.
- The institution or fund is not expressed to be for the benefits of any particulars religious community or caste.
- The institution or fund maintains regular accounts of its receipts and expenditure.
- The institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860, or under any law corresponding to that Act, in force in any part of India or under section 25 of the Companies Act, 1956, or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law or its is an institution financed wholly or in part by the Government or a local authority.
- The trust is necessarily required to be registered with the Commissioner under section 12A. A trust can apply for registration under section 12A and simultaneously seek approval under s. 80G (5).
- There is a time-limit of 6 months (from the date on which such application was made), within which the Commissioner shall pass an order either granting the approval or rejecting the application. However, any time taken by the applicant in not complying with the directions of the commissioner is excluded.
- The period of validity of approval is specified in the order of approval, which cannot exceed five assessment years. Before the expiry of this period, the trust should seek continuance the approval, by submitting the application in Form No. 10G again.
- The approval u/s. 80 G is issued in writing after the Commissioner is satisfied about the genuineness of the activities of the trust and after fulfillment of all conditions laid down in section 80 G (5) (i) to (v)
Income Tax Exemption under Section 12A of the Income Tax Act
- Income of an organization is exempt if the NGO has 12-A registration. This is a onetime registration.
- Application for registration under section 12A can be applied to the Commissioner of Income-tax having jurisdiction over the institution, just after registration of the NGO.
- Application for registration under section 12A and 8OG can be both applied together or separately. If some organization is wishes to apply for both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is a must for applying for registration u/s 80G of Income Tax Act.
Procedure for getting registration under section 12A and 80G of Income Tax Act
- Dully filled-in application will be submitted to the exemption section of the lncome Tax Department.
- NGO will receive notice for clarifications from Income Tax Department in 2-3 months after applying.
- Reply to the notice will be submitted by the consultant along with all relevant desired documents to the Income Tax Departments.
- Consultant will personally visit the Income Tax Departments to follow-up on the case on behalf of the applicant organization.
- Exemption Certificates will be issued.
Registration under Sec 12A & 80G have Lifetime validity
Tax Exemption limit on donations:
There is a limit on how much money can be exempted from Income Tax.
- If the amount of deduction to a charitable organisation or trust is more than 10% of the Gross Total Income computed under the Act (as reduced by income on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assesse is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.
- The persons or organisations who donate under section 80G gets a deduction of 50% from their taxable income and consequently tax is calculated.
Documents required for registration u/s 12A AND 80G:
- Dully filled in Form - 10B for registration u/s 12A registration.
- Dully filled in Form - 10G for registration u/s 80G registration.
- Registration Certificate and MOA /Trust Deed (two copies - self attested by NGO head).
- NOC from Landlord (where registered office is situated).
- Copy of PAN card of NGO.
- Electricity Bill / House tax Receipt /Water Bill (photocopy).
- Evidence of welfare activities carried out & Progress Report since inception or last 3 years.
- Books of Accounts, Balance Sheet & ITR (if any), since inception or last 3 years.
- List of donors along with their address and PAN.
- List of governing body, board of trustees members with their contact details;
- Original RC and MOA /Trust Deed for verification.
- Authority letter in favor of NGO Factory.
- other document I affidavit / undertaking I information asked by the Income Tax department.