80G Registration

Section 80G of the Income-tax Act, 1961 grants approval to charitable trusts, NGOs, societies, and Section 8 companies to issue donation receipts that allow individual and corporate donors to claim a tax deduction. The deduction is typically 50% of the donated amount, subject to a qualifying limit of 10% of the donor's gross total income. For donors, this makes charitable giving financially meaningful — a ₹1,00,000 donation to an 80G-approved institution saves the donor ₹30,000 to ₹42,000 in tax depending on their income slab. For institutions, having 80G status dramatically increases donation inflows because rational donors prefer institutions where their contribution is partially subsidised by the government through the tax deduction mechanism.

Why Your Institution Needs 80G Status Even If You Have Other Funding

Corporate donors spending on CSR under the Companies Act face a fiduciary obligation to deploy the 2% net-profit CSR budget meaningfully. An 80G certificate is one of the most commonly checked boxes by CSR committees because it gives the company a defensible, auditable donation receipt with a built-in tax incentive. Government grant-making bodies — NITI Aayog, ministry-affiliated schemes, multilateral agencies — similarly prefer institutions with 80G status as it demonstrates accountability and formal structure. Individual donors, from high-net-worth families to mid-level salaried professionals, will give more freely when they can convert part of the donation into a tax reduction. Simply put, 80G multiplies your fundraising reach without costing the institution anything beyond the application process.

The Relationship Between 12A and 80G

These are two separate certificates with different legal effects. Section 12A (or 12AB) exempts the institution's own income from tax — it benefits the trust. Section 80G benefits the donor, not the institution. A trust cannot obtain 80G without first holding a valid 12A or 12AB certificate, because the CIT (Exemptions) needs assurance that the institution is genuinely charitable before approving donor-facing tax deductions. Most trusts pursuing both simultaneously will apply for 12A first and 80G immediately after — our CA team coordinates both applications to avoid delays.

The 50% Deduction Limit and Exceptions

For most 80G-approved institutions, donors can claim 50% of the donated amount as deduction from their gross total income. However, the deduction is capped at 10% of the donor's gross total income for the year. Donations above this cap can be carried forward for up to 7 years. Some notified funds — PM Cares Fund, National Defence Fund, Prime Minister's National Relief Fund, and certain state relief funds — qualify for 100% deduction without any cap, making them particularly attractive to large corporate donors. Our team advises institutions on how to structure fundraising campaigns to maximise donor benefit within these limits.

How FinTax24 Secures Your 80G Certificate

Our CS team first verifies your 12A or 12AB status — without it we cannot proceed. We then collect your trust deed, PAN of all trustees, three years of audited financial statements and Form 10B audit reports, registered office address proof, bank statements, and a detailed activity report on the charitable work. Form 10G is drafted to highlight the genuine charitable character of the institution, the quantum of funds utilised for charitable purposes, and the administrative overhead ratio — all factors the CIT examines during approval. We file on the income-tax e-filing portal and manage any CIT (E) queries or hearings on your behalf.

Post-80G Approval: What Your Institution Must Do

Once 80G is approved, the institution must issue donation receipts that contain the 80G approval number, the serial number of the receipt, PAN of the donor, name and address of the donor, and the amount donated. Receipts not meeting these specifications are invalid for donor tax claims. The institution must file Form 10B audit every year and attach it to the annual ITR-7 filing. The 80G approval itself does not expire, but it can be withdrawn if the institution ceases to be genuinely charitable, fails to file annual returns, or accumulates excessive reserves without applying them to charitable purposes. Our compliance team tracks all annual due dates to ensure the approval remains in force.

The CSR Connection: Why Companies Prefer 80G-Approved NGOs

Under the Companies Act 2013, qualifying companies must spend 2% of their average net profit on Corporate Social Responsibility activities. The Companies (CSR Policy) Rules require that CSR funds be routed through a registered trust or Section 8 company with a valid 12A and 80G certificate. Companies prefer 80G-approved NGOs because the donation receipt is a proper auditable document, the donor can claim a 50% tax deduction, and the NGO's credentials are verified by the income-tax department through the publicly listed 80G status. For an NGO, being 80G-approved is a competitive advantage in the CSR funding marketplace — it means corporate donors can fulfil their statutory CSR obligations while giving the NGO access to significantly larger donations than it might otherwise receive. FinTax24 helps NGOs position themselves correctly for CSR partnerships by ensuring their 12A and 80G registrations are current, their ITR-7 and Form 10B filings are up to date, and their governance practices meet the standards expected by CSR committees.

How FinTax24 Manages Your 80G Annual Compliance After Approval

Securing 80G approval is only the beginning — maintaining it requires annual action. Every year, the trust must file Form 10B audit (audited financial statements and statement of application of income for charitable purposes), file ITR-7 with the income-tax department, issue donation receipts that quote the 80G number and donor PAN for all donations above ₹2,000, and maintain a donations register. Our annual compliance package for 80G holders includes the Form 10B audit, ITR-7 preparation and filing, donation receipt template review, and a mid-year governance review to ensure the institution remains genuinely charitable in character and operation. We also handle any CIT queries or notices that arise during the year, including notices questioning the application of funds for charitable purposes.