Nonprofit NGO organization shall apply for 35 ac approval to provide tax exemption to donors who donates for government approved social welfare projects.
Nonprofit NGO organization shall apply for 35 ac, to get approval to provide tax exemption to the donors who donate funds only for a specific social welfare project or social welfare schemes. Also through 35 ac nonprofit NGO organization cannot raise funds from government. It can raise funds only from public for the specified projects.
Several people still think that they shall get 35 ac certificate approvals for their nonprofit NGO organization very easily. But it is not so. Because, only the best reputation with credibility of a nonprofit NGO organization, may help in such approval from the National committee of Central Government. Even several mediators, consultants and brokers are playing with donors and organizations by giving false information and assurances towards 35 ac tax exemption.
Now first of all, you should understand that the central Government of India does not give approval of 35 ac for all nonprofit NGO organizations. It shall provide 35 ac approvals only for the organization which has the basic object, which supports at least the following sectors:
- Family welfare and Immunization
- Tree plantation
- Social Forestry
- Development of irrigation Resources
- Rural sanitation – Construction of low cost latrines
- Medical camps in rural areas
- Rural Health Programs
- Land development and recovering of waste land with special concern on ecological improvement
- Soil and water conservation including harvesting of water
- Non formal education and literacy, especially for children and women
- Rural and non-farm activities
- Creation of employment opportunities for urban and rural population living below the poverty line
- Supportive service for women to engage in productive work (child care of working women)
- Leprosy eradication
- Promotion of sports
- Construction of dwelling units for the economically weaker sections
- Construction for school building for children belonging to the economically weaker sections of the society
- Establishment and running of non-conventional and renewable sources of energy system
- Any other program for uplift of the rural poor of the urban dwellers
The national committee of Central Government of India approves 35 ac for a period of 3 years normally. Extension may be provided as per the satisfactory implementation of project. The national committee may also approve new object oriented projects if it is finding it useful for the society or if they are satisfied as per the requirement of the community.
How to apply for 35 ac approval ?
If you have above specific objects and if you have a special cause to do a social welfare project, you can avail this 35 ac approval, if you feel that you have the best fundraising source. Also the donors can get 100% tax exemption for the fund they are donating towards this 35 ac projects. When they donate funds to 35 ac project as a receiver (nonprofit NGO) you should provide the certificate FORM 58A.
Even if you get 35 ac approval, and you do not have proper fundraising source, then please do not waste your time and efforts.
Please read and fill the 35 ac application form and attach the required attachments and enclose proper files. Kindly download the editable 35 ac application form and other filling as per the instruction in the given form. Make 4 sets of this application (2 sets – for your office copy and send the balance 2 sets to the below address)
The Secretary, National Committee for Promotion of Social and Economic Welfare, Department of Revenue , Ministry of Finance, Room No. 149, North Block, New Delhi- 110001
After you have sent the application, it will take some time to receive your approval and there are several possibilities to reject your application. So please fill the 35 ac form with due care.
If you get approval, don’t misuse it. The misuse of 35 ac by giving fake donation receipt may lead you to up to 7 years of imprisonment and several penalties both for the donor and for the organization.