28 Dec 2016
An NGO which is working on certain specific social welfare projects can apply for getting an approval under section 35AC and can provide tax benefit to donors.
However, An NGO getting approval under Section 35AC cannot raise funds from the Government and its only source of funding would be raising funds from the Public.
It is also to be noted that getting 35AC approval isn’t very simple. The NGO would have to be an NGO of high repute with flawless history with a proven track record of making positive changes in the society.
The following sectors normally obtain 35AC approvals.
1. Family Welfare and immunization
2. Tree plantation
3. Social Forestry
4. Development of Irrigation Resources
5. Rural Sanitation - Construction of low cost latrines
6. Medical camps in rural areas
7. Rural Health Programs
8. Land development and recovering of waste land with special concern on ecological improvement
9. Soil and water conservation including harvesting of run off water
10. Non formal education and literacy, especially for children and women
11. Rural and non farm activities.
12. Creation of employment opportunities for urban and rural population living below the poverty line.
13. Supportive services for women to engage in productive work (Children care of working women)
14. Leprosy eradication
15. Promotion of sports
16. Construction of dwelling units for the economically weaker sections
17. Construction of school building for children belonging to the economically weaker sections of the society
18. Establishment and running of non-conventional and renewable sources of energy systems.
19. Any other program for uplift of the rural poor or the urban slum dwellers.
Applying for 35AC approval:
If you have specific objects of social welfare projects 35AC approval can be applied for. The donors can avail 100% tax exemption for any amounts that they donate towards projects which have the specific approval under section 35AC of the Income Tax Act.
An application should be made to the Central Government enclosing the specific objects of the project that you have planned to carry our detailing in entirety the operations required to achieve such an objective.
After you have sent the application, the Government would approve or reject the application based on their own set of criteria. Therefore maximum care has to be applied while filling out the application.