35AC Registration

As part of our Online Services, we register non-governmental and non-profit organizations under Section 35AC of the Income Tax Act in India.

Under Section 35AC, organizations with income from business or profession can claim a 100% deduction. Charitable organizations carrying on a business can register themselves for this purpose. The Central Government specifies project categories of national need that charitable organizations can raise donations for.

Approval under 35AC isn't permanent. When the National Committee approves a project, the approval runs for a maximum of 3 years, and can be extended further if the Committee is satisfied with performance during that period. The Committee may withdraw approval if a project isn't carried out according to the approved conditions, but must give the organization an opportunity to be heard before doing so.

Requirements

• A duly registered organization
• A detailed project plan for charitable purposes (our Documentation Services can help with this)

Documents & Information We Need

• Applicant's name, address, status, district/ward circle, and PAN number
• Audited Balance Sheet and Profit & Loss / Income & Expenditure account for the latest year and two preceding years
• Formation documents — trust deed, bylaws, memorandum of association, and registration certificate if applicable
• Names and addresses of those managing the organization during the preceding 3 years, including anyone who has since left
• Details of any existing 10(23)(C) notification or 80G approval
• Brief particulars of the organization's activities over the preceding 3 years (or since inception, if younger)
• Any other information the organization wishes to place before the National Committee
• Signed Authority Letter (download here)

Upload your documents at upload@alliedlegalonline.com, or send to our Delhi address for regular service.

How the Deduction Works

Under Section 35AC, a taxpayer who pays a sum to an approved public sector company, local authority, association, or institution for an approved project may deduct that expenditure from the relevant assessment year — a company may instead incur the expenditure directly on the project. The deduction is only allowed if the taxpayer files a certificate with their return of income, from the recipient body or from a qualified accountant, detailing the project's progress. A deduction claimed under this section can't also be claimed under any other provision for the same expenditure.

If the National Committee becomes satisfied that an approved project isn't being run according to its approved conditions, it may withdraw approval — but only after giving the organization a reasonable opportunity to respond to the proposed withdrawal. The "National Committee" is a body of eminent public figures constituted by the Central Government under the rules of the Act; an "eligible project or scheme" is one the Central Government has notified, on the Committee's recommendation, as promoting public social or economic welfare.

Pricing

A 3% fee may apply to online credit card payments. We offer this service throughout India.