Certificate under section 80G

Section 80G applies to donations toy institution or fund, only if it is established in India for a charitable purpose and if it fulfils the stipulated conditions.  Conditions required to be fulfilled under section 80G(5) are as-

(a) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer for application at any time of the whole or any part of the income or assets of the institution or fund for any purposes other than charitable purposes;

(b) the institution or fund in not expressed to be for the benefits of any particular religious community or caste;

(c) the institution or fund maintains regular accounts of its receipts and expenditure;

(d) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860, or under any law corresponding to that Act, in force in any part of India or under section 25 of the Companies Act, 1956, or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law or it is an institution financed wholly or in part by the Government or a local authority,

(e) the institution or fund is for the time being approved by the Commissioner in accordance with rule 11 AA.

  The application should be made in Form No.10G, prescribed under rule 11 AA and it is required to be submitted to the jurisdictional Commissioner of Income-tax.

      The trust is necessarily required to be registered with the Commissioner under section 12A. It can apply for registration under section 12A and simultaneously seek approval under s. 80G(5).

  There is a time-limit of 6 months (from the date on which such application was made), within which the Commissioner shall pass an order either granting the approval or rejecting the application. However, any time taken by the applicant in not complying with the directions of the Commissioner is excluded. 

   The period of validity of approval is specified in the order of approval, which cannot exceed five assessment years. Before the expiry of this period, the trust should seek continuance of the approval, by submitting the application in Form No. 10G again.

More details refer: icai.org/Registration-Charitable-Trusts.