Income tax was first introduced in India in 1860. In those days income related with charitable purposes were totally exempt from tax. Over the years the Income Tax Act underwent radical changes, basically to ensure that such exemptions are not misused by unscrupulous elements. Currently extensive exemptions are still available to NGOs but a host of regulatory provisions have been incorporated in the act, which are to be adhered to, in order to claim exemptions.
APPLICATION FOR REGISTRATION
In order to claim exemption, an NGO should make an application to the Commissioner of Income Tax for registration of the NGO. Such application is to be made in Form 10A.
The following documents are required to be submitted :
i) Form 10A (Annexure 1 Form 10A.pdf)
ii) The original instrument under which the NGO is established, or the Bye Laws &
Memorandum of Association evidencing the creation of the NGO should be enclosed.
iii) Two copies of the Accounts of 3 previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of lesser no. of years may be submitted.