Sec. 35AC Certificate


As we already know that an NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration doesn't provide any benefit to the persons making donations. The Income Tax Act has certain provisions which offer tax benefits to the "donors". All NGOs should avail the advantage of these provisions to attract potential donors. Section 35AC is one of such sections.


The Central Government approves certain NGOs and notifies them as eligible for project or schemes for the purposes of section 35AC. If an NGO succeeds in getting such an approval for its projects then it stands a very good chance of mobilising funds from the corporate and the business sector. Business houses making contribution to such approved projects are allowed the benefits of deducting such contribution as expenditure.


The Central Government has constituted a National Committee to identify projects and schemes to be notified under section 35AC, such committee normally consists of eminent persons. All NGOs are entitled to apply to the National Committee to get its projects or schemes approved. The provisions under Sec 35AC also prescribe some special purposes/projects/causes for which the government can issue these certificates. The government notifies the agencies and the respective project for which the certificate is issued. These certificates are granted for a limited period and are renewed only after The National Committee is satisfied with the progress made in the project. It is not common for the committee for de-notifying projects for various reasons.


As NGO’s across India apply for these certificates it may not be physically possible for an NGO not based in Delhi pursue these matters on their own along with the ministry, leave alone the cost involved in the commuting and

We at FIGBIRD CONSULTANTS with are experience panel of associate can provide Liaison for your NGO and also act as your authorized representative before the Ministry at the fraction of the cost. We have in our panel, Lawyers, Charted Accountants, Company Secretaries and management consultants that have the calibre and the capability of grasping and making presentation of your projects before the Ministry and will be assisting you at every stage of processing your application, including making presentations etc.

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