The Income Tax Act is federal legislation that affects all not-for-profit organisations uniformly throughout India. It treats all of them equally in terms of exempting their income and in granting a certificate under Section 80 G whereby donors to not-for-profit organisations can claim a tax rebate against the donations they make.
An important condition for exempting the income of NGOs from tax is that under the act 80-G, 12-A, PAN, income must be applied or accumulated in India.
