80G Certificate Registration

Vakilkaro simplifies 80G certificate registration for NGOs, trusts, societies and charitable institutions across India with complete end-to-end expert assistance. 80G approval is what makes giving financially attractive to a donor, and it is the single most powerful fundraising instrument an Indian NGO can hold.

Our team of Chartered Accountants and tax professionals handles the entire process — activity report drafting, Form 10A filing alongside 12AB, departmental follow-up, certificate download, and the Form 10BD and 10BE donor reporting that follows every year — at a transparent and affordable fee with no hidden charges.

Introduction

What is 80G Certificate Registration in India?

The 80G certificate registration is a formal approval issued by the Income Tax Department to charitable organisations, NGOs and trusts, under which donors who contribute to the organisation can claim a deduction from their taxable income. Its purpose is to encourage philanthropy by sharing the cost of giving between the donor and the exchequer.

Once approved, the organisation can issue donation receipts that its donors use when filing their returns, and — since the introduction of Form 10BD and Form 10BE — must also report every donation to the Department so that the donor’s claim is validated automatically.

A distinction worth being precise about. 80G does not reduce the organisation’s own tax; that is what 12AB does. 80G reduces the donor’s tax. Which means its value is entirely a fundraising value — and a substantial one, because it changes the effective cost of a donation to the donor.

Who Can Apply for 80G Registration?

Charitable trusts and religious trusts, registered under the applicable state trust law

Societies registered under the Societies Registration Act, 1860

Section 8 companies incorporated under the Companies Act, 2013

Educational institutions operating on a genuine non-profit basis

Medical institutions — hospitals and clinics run for charitable purposes

Other institutions established for charitable purposes

Who cannot. A sole proprietorship, a partnership firm, an HUF, an LLP, a private limited company or a public limited company cannot obtain 80G approval. The organisation must first be constituted as a trust, a society or a Section 8 company, and must hold valid registration under Section 12AB.

Difference between 12AB and 80G Registration

A correction on the prerequisite. Guidance that describes 12AB registration as merely “recommended” before 80G is understating it. Valid registration under Section 12AB is a condition of 80G approval. If 12AB lapses, the 80G approval falls with it, and donations received after that date carry no deduction for the donor.

Should You Apply for Both Together?

Yes, and in almost every case they should be applied for in the same Form 10A filing. The portal provides for both, applying together saves time and professional cost, and 80G is dependent on 12AB in any event.

The combined effect, in practice. An organisation holding both:

Pays no tax on income applied to its objects

Offers its individual donors a deduction, reducing their effective cost of giving

Becomes eligible to receive CSR funding, since the CSR Rules require the implementing agency to hold both 12AB and 80G

Meets the threshold eligibility filter for most central and state government grants

Presents a materially stronger position on an FCRA application

Without both, several of those funding routes are simply closed.

Eligibility

Eligibility Criteria for 80G Registration

The organisation must hold valid registration under Section 12AB

Its income and assets must be applied only to its charitable objects, and not to the private benefit of any person

It must maintain proper books of account and have them audited

It must not be established for the benefit of any particular religious community or caste

Where it derives income from a business, it must maintain separate books for that business and the business must be incidental to the attainment of its objects

Its instrument of constitution must not permit the diversion of income or assets for non-charitable purposes

The governing body members must not be disqualified

On the religious activity condition — the position is more precise than most guidance suggests. An institution established for the benefit of a particular religious community or caste is not eligible. Separately, an institution that incurs expenditure of a religious nature exceeding 5% of its total income in a year is generally not eligible for that year. But a trust with mixed religious and charitable objects, whose religious expenditure stays within that proportion and whose benefits are open to all, is not disqualified merely by having a religious character.

This is a real distinction. A temple trust that runs a free school and a medical camp open to everyone, with religious expenditure within the limit, is in a very different position from a body whose entire purpose is to serve one community’s religious observance.

Documents

Documents Required for 80G Registration

The activity report is what decides the application. The Commissioner is assessing whether the charitable work is genuine and whether it matches the stated objects. A general statement of intention draws a query. The report should state what the organisation does, where, for whom, at what scale, and with what evidence — beneficiary numbers, locations, programme descriptions, photographs and outcome data. Vakilkaro drafts this rather than treating it as an attachment.

Step-by-step Process

Process to Apply for 80G Registration Online

• ✓Step 1: Log in to the Income Tax e-filing portal using the organisation’s PAN.
• ✓Step 2: Navigate to e-File, then Income Tax Forms, then File Income Tax Forms.
• ✓Step 3: Select Form 10A for a first-time provisional approval, and select the appropriate section code — the same Form 10A covers both 12AB registration and 80G approval, and both should be applied for together.
• ✓Step 4: Complete the application with the organisation’s details, registration particulars, objects, nature of activities, governing body details and financial information.
• ✓Step 5: Upload the documents — registration certificate, constitutional document, 12AB certificate, audited accounts, activity report, governing body list and bank details.
• ✓Step 6: Verify using the Digital Signature Certificate or electronic verification code of the authorised signatory.
• ✓Step 7: Submit and note the acknowledgement number for tracking.
• ✓Step 8: Departmental review. The Principal Commissioner or Commissioner examines the objects, the genuineness of activities and compliance with the conditions, and may issue a notice.
• ✓Step 9: Provisional approval granted in Form 10AC, valid for three years, downloadable from the portal.
• ✓Step 10: Apply for regular approval in Form 10AB — within six months of commencement of activities, or at least six months before the provisional approval expires, whichever is earlier. Regular approval is granted in Form 10AD, valid for five years.

The deadline point that catches most organisations. The Form 10AB application is due on the earlier of the two limbs, and the first limb — six months from commencement of activities — usually arrives long before the end of the three-year provisional period. An organisation that begins programme work in its first year has a much shorter window than it assumes.

Filing Form 10A for 80G Registration

Form 10A is the prescribed application for provisional approval under the post-2020 framework, and it captures:

The nature of charitable activities conducted or planned

Financial details — income, expenditure and surplus for the last three years

Governing body information with KYC particulars

Details of the organisation’s registration under its own law

Details of registration under Section 12AB

The activity report describing impact and beneficiaries

Details of any FCRA registration held

The form is filed electronically and verified by DSC or electronic verification code. Form 10AB is used for regular approval after the provisional period and for every subsequent five-yearly renewal.

Validity and Renewal of the 80G Certificate

A correction on the two-stage sequence. Some guidance describes provisional approval as being for new organisations and “regular or permanent” approval as being for organisations with an existing track record, as though they were alternative routes. They are not alternatives — they are sequential stages. Every new applicant goes through provisional approval first, and then applies for regular approval. And no 80G approval is permanent under the current framework; every approval expires and must be renewed.

Diarising the renewal date from the day the certificate is issued is the most valuable administrative habit a registered organisation can develop.

What Happens if Approval Lapses?

Donors lose their deduction for every donation made after the lapse date — including donors who gave in good faith on the strength of a receipt

CSR funding stops, because the CSR Rules require the implementing agency to hold both 12AB and 80G

Government grant eligibility is affected, since 80G status is a common screening filter

Reinstatement requires a fresh application, with a gap in coverage during which no donor can claim

Reputational damage with donors typically outlasts the tax cost — a donor who could not claim a promised deduction rarely gives again

And where the lapse extends to 12AB. Because 80G depends on 12AB, a lapse of the underlying registration takes the 80G approval with it. Worse, cessation of 12AB registration can trigger a charge on the organisation’s accreted income — effectively a tax on the net value of its assets at the maximum marginal rate. Letting registrations lapse is therefore not merely a return to taxable status going forward; it can crystallise a substantial charge on decades of accumulated value.

How to Check Registration Status and Download the Certificate?

Checking application status

Log in to the Income Tax e-filing portal with the organisation’s PAN

Go to the e-File or worklist section and locate the filed form

Enter or select the acknowledgement number generated on submission

The current status is displayed

Downloading the certificate. Once approved, the certificate is available from the portal — Form 10AC for provisional approval and Form 10AD for regular approval — in PDF format, carrying the Unique Registration Number that must appear on every donation receipt.

Verifying another organisation. A prospective donor can verify an organisation’s status through the Income Tax portal’s facility for searching approved institutions, using the organisation’s PAN or Unique Registration Number. Donors should always check that the approval is currently valid, not merely that it once existed.

Benefits

Benefits of 80G Registration

For the organisation

Substantially improved fundraising capacity, because the deduction changes the effective cost of giving

CSR eligibility, in combination with 12AB and the other conditions in the CSR Rules

Government grant eligibility, where 80G status is used as a screening filter

Enhanced credibility — approval signals that the Department has examined the organisation’s objects and activities

Competitive advantage over unapproved organisations working in the same space

Stronger FCRA position, through a demonstrated compliance record

For donors

A deduction against taxable income, reducing the after-tax cost of the donation

Automatic validation of the claim through Form 10BD and Form 10BE

Confidence that the recipient organisation is examined and compliant

For corporates, documentation supporting both the tax position and the CSR record

Tax Deduction Benefits for Donors — How 80G Works

Section 80G provides for four categories of deduction:

100% deduction without any qualifying limit — donations to specified national funds such as the Prime Minister’s National Relief Fund, the National Defence Fund and the National Children’s Fund

50% deduction without any qualifying limit — donations to certain specified funds

100% deduction subject to the qualifying limit — donations to certain specified institutions and government-notified purposes

50% deduction subject to the qualifying limit — this is the category into which ordinary charitable trusts, societies and Section 8 companies with 80G approval fall

The correction that matters most. A great deal of published material tells donors they may get “50% or 100%” from an ordinary NGO. For an ordinary approved charitable organisation the deduction is 50%, subject to a qualifying limit of 10% of adjusted gross total income. The 100% categories are specific notified funds listed in the Act. Promising a donor a 100% deduction from an ordinary NGO donation is a promise that cannot be delivered, and the donor discovers it at the point of filing.

Cash donation limit. Cash donations exceeding ₹2,000 are not eligible for deduction. Donations above that must be made by cheque, demand draft, bank transfer or any digital mode.

Donations in kind. Contributions of goods, materials, equipment or property do not qualify for deduction under Section 80G. Only monetary donations qualify.

How to Calculate the Deduction under Section 80G?

The mechanics

Identify the applicable percentage — 50% for an ordinary approved NGO

Identify whether a qualifying limit applies — for an ordinary NGO it does

Compute the qualifying limit as 10% of adjusted gross total income

The deduction is the applicable percentage of the donation, restricted to the qualifying limit

Adjusted gross total income is gross total income reduced by long-term capital gains, short-term capital gains on listed securities chargeable at the special rate, income chargeable under the special provisions applicable to non-residents, and all Chapter VI-A deductions other than Section 80G itself.

Worked example. A donor with gross total income of ₹12 lakh donates ₹2 lakh to an approved charitable trust:

Qualifying limit = 10% of ₹12 lakh = ₹1,20,000

50% of the donation = ₹1,00,000

Deduction allowed = the lower of the two = ₹1,00,000

Tax saved at 30% = ₹30,000

Effective cost of the ₹2 lakh donation = ₹1,70,000

The New Tax Regime Problem — Why Many Donors No Longer Benefit?

This is the single most important development affecting 80G fundraising, and it is absent from almost all published guidance on the subject. Every NGO relying on individual donors needs to understand it.

Section 80G deduction is not available under the new tax regime. The new regime under Section 115BAC, which is now the default regime for individuals and HUFs, does not permit most Chapter VI-A deductions, including Section 80G. A donor who is on the new regime — which most salaried taxpayers now are, unless they actively opt out — gets no tax benefit whatsoever from an 80G donation.

What this means in practice

The pitch “donate and save tax” no longer works on a large and growing share of individual donors

Donors who benefit are those who have opted into the old regime, typically because they have substantial housing loan interest, insurance, or other deductions that make the old regime worthwhile

Companies are unaffected by Section 115BAC, so corporate donors continue to claim 80G in the ordinary way, subject to the regime they are on

Domestic companies that have opted into the concessional corporate tax regime, however, are also restricted from claiming most Chapter VI-A deductions including 80G — so a corporate donor’s position must be checked rather than assumed

Why this does not make 80G less important. It changes the argument, not the value. 80G approval remains mandatory for CSR funding under the CSR Rules, remains a screening filter for government grants, remains a credibility signal, and continues to deliver a real benefit to old-regime individual donors, to certain corporate donors, and to HUFs on the old regime. What has changed is that an organisation’s fundraising message should no longer rest primarily on the donor’s tax saving.

Vakilkaro advises client organisations to lead with impact and compliance credibility, and to present the deduction as a benefit available to donors on the old regime — which is accurate, and avoids the awkwardness of a donor discovering at filing that the promised saving was unavailable to him.

How 80G Benefits Different Types of Taxpayers?

Individual taxpayers. A deduction is available only to a donor who has opted into the old tax regime. For such a donor, 50% of the donation subject to the 10% qualifying limit reduces taxable income and therefore tax. A donor on the default new regime gets no benefit.

HUF taxpayers. The same position applies — the deduction is available on the old regime, subject to the same qualifying limits, computed on the HUF’s own income.

Corporate donors. Companies are not affected by Section 115BAC, and may claim 80G in the ordinary way — unless they have opted into the concessional corporate tax regime, which restricts most Chapter VI-A deductions. A corporate donor’s position should therefore be confirmed, not assumed.

Form 10BD and Form 10BE — the Reporting That Decides Everything

This is now the operative control on the entire 80G system, and an organisation that does not understand it will fail its donors.

Form 10BD — Statement of Donations. Every 80G-approved organisation must file, by 31 May each year, a statement reporting every donor and every donation received during the preceding financial year, with the donor’s name, address and identification particulars including PAN or Aadhaar.

Form 10BE — Certificate of Donation. Having filed Form 10BD, the organisation must issue each donor a certificate in Form 10BE, generated from the portal, by the same date of 31 May.

The consequence.A donor cannot claim the 80G deduction unless the donation appears in the organisation’s Form 10BD filing. The system pre-fills and validates the claim from that filing. A manual receipt issued at the time of donation, however properly stamped and signed, is no longer sufficient on its own.

What this means operationally

The organisation must collect the donor’s PAN or Aadhaar at the time of donation — without it, the donation cannot be correctly reported and the donor cannot claim

Donation records must be maintained donor-wise throughout the year, not reconstructed in May

Late filing attracts a fee for each day of default, and inaccurate reporting attracts a separate penalty

Corrections require a revised Form 10BD, which is possible but should not be the routine

Why this is the most important compliance an 80G organisation has. Every other default is a matter between the organisation and the Department. This one directly harms the donor. A donor who cannot claim a deduction he was promised does not usually give again, and does tell others.

Details Required for a Donor to Claim the Deduction

In the donor’s return

Name and PAN of the donee organisation

Address of the organisation

Amount donated

Mode of payment — cash or other than cash

Date of donation

The applicable deduction category

The donation as reported in Form 10BD, validated through Form 10BE

Records the donor should keep

The donation receipt, carrying the organisation’s name, PAN, Unique Registration Number, the donor’s name and PAN, the amount, the date and the mode of payment

Form 10BE issued by the organisation

Bank statement, transfer confirmation or cancelled cheque as proof of payment

Confirmation that the organisation’s approval was valid on the date of donation

Two rules to remember. Cash donations above ₹2,000 do not qualify. Donations in kind do not qualify at all.

CSR Donations and 80G — an Important Clarification

This point is frequently stated incorrectly, and the error can be expensive for a corporate donor.

CSR expenditure and 80G deduction are not the same thing, and the relationship between them is restricted.

CSR expenditure incurred under Section 135 of the Companies Act is expressly not allowable as business expenditure under the Income Tax Act

The 80G deduction is separately restricted in relation to CSR — deduction under Section 80G is not available in respect of CSR contributions to the Swachh Bharat Kosh and the Clean Ganga Fund, and the general position on claiming 80G for other CSR spending is contested and should not be assumed

What is certain is that the CSR Rules require an implementing agency to hold both 12AB and 80G registration, and must additionally either have been established by the funding company or its group, or under an Act of the legislature, or have an established track record of at least three years in similar activities

The practical guidance for an NGO. Do not tell a corporate donor that its CSR contribution will attract an 80G deduction. Tell it, accurately, that your 80G approval is what makes you an eligible implementing agency under the CSR Rules — which is a legal requirement and the actual reason it matters. The corporate’s own tax treatment of the contribution is a matter for its advisers.

Verifying an 80G Approved Institution

A prospective donor can and should verify approval before donating, through the Income Tax portal’s facility for searching approved institutions, using the organisation’s PAN or Unique Registration Number.

What to check:

That the approval is currently valid, not merely that it once existed

The validity period shown against the registration

That the PAN matches the organisation you are actually donating to

Whether the organisation is on provisional or regular approval

For the organisation’s own part, the Unique Registration Number and the validity period should appear on every donation receipt, and the certificate should be available on request. Donors increasingly ask, and an organisation that cannot produce it loses the donation.

08. Compliance

Compliance after 80G Registration

Ongoing obligations

Collect donor PAN or Aadhaar at the point of donation — without it the donation cannot be reported and the donor cannot claim

Maintain donor-wise records throughout the year, including amount, date and mode of payment

Do not accept cash donations above ₹2,000 where the donor expects a deduction

Maintain valid 12AB registration at all times — 80G falls with it

Apply at least 85% of income to the objects, with Form 10 filed where accumulation exceeds 15%

Invest funds only in the modes permitted under Section 11(5)

Ensure no income or property is applied for the benefit of a specified person

Which audit form applies.Form 10B where the organisation’s total income exceeds the prescribed higher threshold, or it received foreign contribution, or it applied income outside India; Form 10BB otherwise. The applicable form should be checked each year rather than carried forward.

Common Mistakes to Avoid

Not filing Form 10BD by 31 May — the single most damaging default, because it directly deprives donors of their deduction

Not collecting donor PAN at the time of donation, making correct reporting impossible

Telling donors they will get a 100% deduction when the ordinary position is 50% subject to the qualifying limit

Not explaining the new tax regime position, leaving new-regime donors to discover at filing that they can claim nothing

Telling corporates that CSR contributions attract an 80G deduction

Accepting cash donations above ₹2,000 and issuing 80G receipts for them

Issuing 80G receipts for donations in kind, which do not qualify

Missing the Form 10AB deadline, particularly the six-months-from-commencement limb

Allowing 12AB to lapse, which takes the 80G approval with it and can trigger the accreted income charge

A vague activity report, the leading cause of query and rejection

Not displaying the Unique Registration Number and validity period on donation receipts

Assuming approval is permanent — no 80G approval is perpetual under the current framework

09. Time

Time of 80G Registration

The Government charges nothing. What is being paid for is the activity report that decides the application, the document review that prevents rejection, the response to any departmental notice, the Form 10AB deadline management, and the annual Form 10BD and 10BE cycle that determines whether your donors actually receive what you promised them.

10. Why Choose Vakilkaro?

Why Choose Vakilkaro for 80G Certificate Registration?

Expert tax team working to the current framework — Section 12AB, Forms 10A and 10AB, and the 10BD and 10BE reporting cycle

Activity report drafting — the factor that most determines approval, drafted properly rather than filled in

Simultaneous 12AB and 80G filing in a single Form 10A, saving time and cost

Document review before submission, preventing the rejections caused by mismatched names, unaudited accounts and incomplete certification

Form 10BD and 10BE systems — donor data capture at the point of donation, annual filing by 31 May and certificate issue, so your donors can actually claim

Deadline management — the Form 10AB regular approval and every renewal, diarised from the day the certificate is issued

Honest donor communication — accurate positioning of the 50% deduction, the qualifying limit, the new tax regime position and the CSR reality, so your fundraising promises hold

Post-registration compliance — ITR-7, Form 10B or 10BB, Form 10, FCRA returns and TDS

Transparent pricing — NIL government fee and no hidden professional charges

Pan-India service to trusts, societies, Section 8 companies, and educational, medical and religious institutions

Contact Vakilkaro today and get your 80G approval in place — because your donors deserve the benefit you promised them, and your organisation deserves every funding route the law makes available.