Company us 8

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amarendra shah

amarendra shah (Querist)
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12 December 2014 do company registered u/s 8 make the donor tax exemption of 100%?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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12 December 2014 they need to get certificate from charity commisioner.

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amarendra shah

amarendra shah (Querist)
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12 December 2014 which certificate can u elaborate plz.
is it income tax charity commisioner or other one?

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Asha Kanta Sharma

Asha Kanta Sharma

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19 July 2024 Companies registered under Section 8 of the Companies Act, 2013 in India are typically not-for-profit entities that are formed with the primary objective of promoting charitable causes, art, science, sports, education, research, social welfare, religion, protection of environment or any such other charitable purpose. These companies are regulated by the Ministry of Corporate Affairs (MCA) in India.

Here are the key points regarding tax exemptions for donors to Section 8 companies:

1. **Section 80G of Income Tax Act**: Donations made to Section 8 companies are eligible for deduction under Section 80G of the Income Tax Act, 1961 in India. This deduction allows donors to claim a deduction from their taxable income, subject to specified limits and conditions.

2. **Certificate under Section 80G**: To avail tax benefits, Section 8 companies can apply to the Income Tax Department for registration under Section 80G. Once registered, the company will issue a certificate to donors who contribute funds. This certificate is proof that the donation qualifies for tax exemption.

3. **Charity Commissioner or Income Tax Department**: While the Charity Commissioner may oversee certain aspects related to charitable activities and compliance, the issuance of certificates under Section 80G for tax exemption is managed by the Income Tax Department.

4. **Eligibility Criteria for Section 80G**: To qualify for registration under Section 80G, Section 8 companies must meet certain conditions laid down by the Income Tax Department. These conditions relate to the nature of activities, utilization of funds, and compliance with reporting requirements.

In summary, donations made to Section 8 companies registered under Section 80G of the Income Tax Act are eligible for tax exemption. Donors should ensure that they receive a valid 80G certificate from the company, which they can use to claim deductions while filing their income tax returns. It's advisable for Section 8 companies to maintain compliance with all applicable regulations and to periodically renew their registration under Section 80G to continue offering tax benefits to donors.