Standard Operating Procedure (SOP) for making application for claim of tax exemption u/s 11(1)(c) of the Income-tax Act, in respect of remittance of money/relief articles by Indian NGOs/Charitable Organisations for earthquake hit people in Nepal

Circular dtd 08-07-2015

The applicant organization seeking income tax exemption u/s 11(1)(c) should apply to Member(IT), CBDT, New Delhi. The application must contain the information as per ANNEXURE-I as well as other relevant information discussed at Paras5 to 9 below, as applicable. It must be ensured that complete information is provided and copies of required documents are enclosed.


 Ministry of Finance, Government of Nepal has come out with “National and International NonGovernment Aid Mobilization Directory 2015” (http://ndma.gov.in/images/pdf/criteria-fordonors-for-rehabilitation-and-reconsruction.pdf). Before making an application u/s 11(1)(c), the donor must be satisfied that carrying out any of the proposed relief activities would not violate the prescribed criteria and the procedure laid down therein would strictly be adhered to. For ready reference, a copy of the said Directory is enclosed as ANNEXURE – III. If it comes to the notice of any authority that the conditions prescribed in the said Directory have been violated at any point of time, the approval granted u/s 11(1)(c) would be liable for withdrawal.

The applicant organizations must be registered u/s 12AA of the Income-tax Act.

However, before making an application to CBDT, it must be ensured that the Memorandum of Association/Trust Deed contains a specific clause as per which the activities of the nature of relief and rehabilitation of disaster-hit people is a duly mandated and permissible activity. If there is no such direct clause and the organization is still desirous of undertaking the same, it may, before making application to CBDT u/s 11(1)(c), consider amending/modifying the object clause of its MoA/Trust Deed suitably so as to include the same therein, following due procedure. Copiesof documents evidencing such changes must be enclosed alongwith the application u/s 11(1)(c ).


The NGOs/Charitable Organisations, who are eligible to apply u/s 11(1)(c ) in terms of conditions at Paras 2 & 3 above, shall be required to make compliances as prescribed in Paras 5 to 9 below.