35AC Registration is a very different thing compare to FCRA registration, 12A registration and 80registration. 35 AC is section of Income Tax. To register as 35 AC organization applications should be submit our project proposal to National Committee. After evaluation of project report the committee approves or disapproves the project.
Any scientific research association / organization which has its objects, carrying out the scientific research or social science research or social science research can be approved under section 35 I(ii) and 35I(iii) in accordance with the guidelines and other conditions as may be notified in the official gazette of the central government. The donor will receive 100% to 175% weighted deduction on the donated amount under different subsection of Section 35AC of income Tax.
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 mobilizing 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 fund that is used for the charitable or religious purposes is considered to be the income application. The income application is nothing but the expenses used for charitable or religious purposes when calculating the income of the trust.The income received will be free from taxation.The person registered under this section can avail benefits for accumulating or setting aside income which is not more than 15% for the charitable or religious purposes.The accumulation of income that is considered to be the income application according to Section 11(2) will not be included in the total income.
Only Charitable Trusts, Religious Trusts, Societies and companies that come under Section 8 are eligible for 12A registration. 12A registration is not applicable for Private or Family Trust.