Student Social Responsibility (SSR)

Student Social Responsibility (SSR)

A Chapter of HDF School of Management,Odisha

INCOME TAX APPLICABILITY:

The Income Tax Act, 1961, is applicable to Voluntary Organizations which are engaged in public charitable or religious activity. Hence, Voluntary Organizations which carry out socio-development programmes in India of a charitable nature for the benefit of the public shall get the benefit of the Act and the exemptions available therein

12A Certificate : The provisions of Section 11 & 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-

the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA

Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of section 11 and section 12 shall apply in relation to the income of such trust or institution, -

From the date of the creation of trust or the establishment of the institution if the commission is for , for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons, from the 1st day of the financial year in which the application is made, if the commission is not to be satisfied.

where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12 exceeds fifty thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

80 G Certificate:

Donor (whether an individual, association, company, etc.) is entitled to a deduction (in computing his total income) if he makes a donation to a nonprofit

organization enjoying exemption under section 80G of the Income Tax Act. The amount donated, however, should not exceed 10% of the donor’s gross total income as reduced by the deductions (other than the deduction under section 80G) for the purpose of rebate. If the donation is in excess of 10% of the donor’s gross total income, the amount in excess of 10% cannot be considered for deduction under this section.

Donations in kind (such as computers, medical equipment, vehicles, etc.) are not eligible for deduction under section 80G. The donation must be a certain sum of money. While donations made to various funds set up by the National or State Government (like the National Defence Fund, the Jawaharlal Nehru Memorial Fund, the Prime Minister’s Drought Relief Fund, and the National Foundation for Communal Harmony) qualify for 100% tax rebate (i.e., the whole of the amount donated is allowable as a deduction) donations made to nongovernmental, non-profit organizations exempt under section 80G (5) of the Income Tax Act qualify for only 50% tax rebate.

With an 80 G certificate donors can claim 50% deduction from their taxable income (as distinct from the tax payable) Almost any NPO who is exempt from income tax can be approved under this section. The NPO needs to obtain the approval of the Commissioner of Income Tax (CIT). The CIT issues a letter granting approval under section 80 G, with a number and period of approval (can be upto 5 years at a time). To obtain approval, an NPO should Make an application in form 10G in triplicate. The application should be accompanied by the following documents

v Copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C

v Notes on activities of institution or fund since its inception or during the last three years, whichever is less Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less

The commissioner may call for further documents or information if necessary. If all is in order the certificate is given specifying the year or years for which the approval is valid. If 38 the application is rejected the reasons for the same will be recorded in writing and a hearing will be given prior to rejection. The time limit for the approval/rejection is 6 months from the date of application