35AC Registration/ 35 AC Project
There are ways or means by which tax is exempted but that however does not provide any benefit to the donors. The act of 35AC provides tax benefits to the donors. This helps a NGO to have potential donors. The entire section of 35 AC is one such useful benefit that could be availed by a NGO to support their donors. This makes the donors save their tax through the donation that they offer to the Non Government Organizations (NGOS).
If a NGO succeeds in getting an approval like this then it stands a very good chance of mobilizing funds from the business and corporate sector. Business houses offering contribution like these are approved with projects which are allowed the benefits of deducting such contribution as expenditure. So there are many NGO who take the advantage of this to attract donors who want to be of help to a cause but generally do not move their first step because they do not receive any benefits from the Income Tax dept. A 35AC registration is crucial for those NGOs who have a large number of corporate donors. This makes their NGO more reachable and more spread out in a society.
There are ways in which the entire application procedure is done along with submitting the supporting documents which is provided to the department with two set of application. There are consultants of Chanakya NGO consultancy who would be there to help NGOs in this regard. A National Committee has been constituted by the Central Government to identify the projects and the schemes that can be notified under section 35AC. Such a committee normally consists of well known person. All NGOs can to apply to the National Committee to get their projects or their schemes approved. Thus, any organization can draw the benefits of 35AC Registration.