Section 80G Registration for NGOs & Trusts in Pondicherry

Section 80G registration makes your NGO, Trust or charitable organization a tax-smart choice for donors. Donors who contribute to an 80G-registered organization can claim 50% deduction on their donation amount from their taxable income — making your organization significantly more attractive for corporate and individual fundraising.

What is Section 80G Registration?

Under Section 80G of the Income Tax Act, 1961, donors who make monetary contributions to an 80G-approved organization are entitled to claim a deduction of 50% of their donation amount from their gross total income when filing their income tax return. This effectively reduces the donor's tax liability by 50% of the donated amount (subject to certain limits). 80G registration is entirely focused on benefiting the donors — the organization's own tax liability is covered by separate Section 12A registration.

50% Deduction — How It Works

A donor with Rs. 10 lakh gross total income donates Rs. 1 lakh to an 80G-registered NGO.

  • Donation amount: Rs. 1,00,000
  • 50% deduction allowed: Rs. 50,000
  • Taxable income reduced to: Rs. 9,50,000
  • Tax saving: ~Rs. 15,000 (at 30% slab)

80G Deduction Limit

The 50% deduction for donations to most NGOs (non-government) is subject to a ceiling:

  • Donations qualifying for deduction cannot exceed 10% of adjusted gross total income
  • Donations above this limit give no further deduction
  • Mode: Only cash donations up to Rs. 2,000 qualify — above Rs. 2,000 must be by cheque/NEFT/digital transfer

Prerequisites for 80G Registration

80G registration cannot be obtained standalone — the following conditions must be satisfied before applying:

1️⃣

Valid 12A / 12AB Registration

The organization must first obtain Section 12AB registration. 80G cannot be granted without 12A.

2️⃣

Charitable Objects Only

Objects must be charitable — education, health, poverty relief, environment, etc. Commercial activities must not exceed 20% of total receipts.

3️⃣

Not Exclusively Religious

Purely religious trusts (serving only one community) are not eligible for 80G. Trusts with mixed charitable-religious purposes may qualify for the charitable portion.

4️⃣

Separate Books of Accounts

Proper audited books of accounts must be maintained. Income applied to charitable objects must be clearly documented and verifiable.

Documents Required for 80G Registration

Organization Documents

  • Trust Deed / MOA & Rules / Certificate of Incorporation
  • PAN Card of the organization
  • 12A/12AB registration certificate (copy)
  • Registration certificate from state authority (Trust Act / Societies Act)
  • List of trustees / directors with PAN & Aadhaar
  • Address proof of registered office

Financial & Activity Documents

  • Audited accounts for last 3 years (balance sheet + income & expenditure)
  • ITR-7 acknowledgements filed (last 3 years)
  • Detailed activity report showing charitable work carried out
  • Details of donations already received with donor names
  • Self-declaration that income is applied only for charitable purposes

80G Registration Process (Form 10A / Form 10AB)

1

Confirm 12A Registration is Active

80G is typically applied simultaneously with 12A via the same Form 10A (for new organizations) or Form 10AB (for renewal). Verify that the organization's 12AB registration is valid and the Unique Registration Number (URN) is available before proceeding.

2

Compile Documents & Activity Evidence

Prepare audited accounts, annual reports, activity photographs and beneficiary details. The CIT(E) scrutinizes whether the organization genuinely carries on charitable activities before granting 80G, so strong documentary evidence of work done is essential for regular registration.

3

File Form 10A / Form 10AB on IT Portal

Login to incometax.gov.in using the organization's PAN. Select "Income Tax Forms" → "File Income Tax Forms" → Form 10A (new organizations) or Form 10AB (renewal/regular). Check the 80G approval box — both 12A and 80G can be applied in the same form simultaneously.

4

CIT(E) Review & Hearing

The Commissioner of Income Tax (Exemptions) reviews the application for 80G registration more rigorously than for 12A. For existing organizations applying for regular registration, the CIT(E) may schedule a hearing and request additional documents showing charitable activities, accounts and governance. Respond promptly to all notices.

5

Obtain 80G Approval Certificate

On satisfaction, the CIT(E) issues the 80G approval order. The certificate contains the Unique Registration Number (URN) and the approval period (provisional 3 years for new NGOs; regular 5 years for established organizations). The certificate must be quoted by donors in their ITR to claim deductions.

6

File Form 10BD & Issue Form 10BE

After 80G registration, the organization must file Form 10BD (statement of donations received, with PAN of all donors above Rs. 2,000) by 31st May each year. The organization must also issue Form 10BE (donation certificate) to each donor by 31st May so they can claim the 80G deduction in their ITR.

Annual Compliance After 80G Registration

Compliance Details Due Date
Form 10BD Statement of donations received — name, PAN, address and amount for each donor above Rs. 2,000 31st May each year
Form 10BE Donation certificate issued to each donor confirming the donation and 80G registration details 31st May each year
ITR-7 Filing Annual income tax return for the organization (even if income is fully exempt under 12A) 31st October (if audit required)
CA Audit Report Audit by Chartered Accountant if income exceeds Rs. 5 lakhs; audit report in Form 10B Before filing ITR-7
Renewal (Form 10AB) Apply for renewal of 80G (and 12A) 6 months before expiry to avoid lapse 6 months before expiry

Frequently Asked Questions

Is 80G registration mandatory for receiving donations?
No, 80G registration is not mandatory to receive donations. Any registered NGO, Trust or charitable organization can receive donations without 80G. However, without 80G registration, donors cannot claim any income tax deduction on their contributions. In practice, most corporate donors — especially those making CSR expenditures — and high-net-worth individual donors require the recipient organization to have 80G approval before donating, making it effectively essential for serious fundraising.
Can a donor claim 100% deduction under 80G?
Most NGOs that obtain 80G approval qualify for a 50% deduction for their donors, subject to the 10% of adjusted gross total income limit. However, donations to certain government funds and notified institutions (like PM National Relief Fund, PMNRF, National Defence Fund) qualify for a 100% deduction without any ceiling. Private charitable organizations registered under 80G typically give donors only a 50% deduction, not 100%. The 80G approval certificate specifies the applicable deduction rate.
What is Form 10BD and why is it important for donors?
Form 10BD is the "Statement of Particulars of Donations Received" that every 80G-registered organization must file by 31st May each year on the Income Tax portal. It lists all donations received along with the donor's PAN, name and amount donated. This data is cross-referenced by the IT Department when a donor claims the 80G deduction in their ITR. If the organization does not file Form 10BD or files it with errors, the donor's deduction claim may be rejected even if the organization has valid 80G registration. Timely and accurate filing of Form 10BD is therefore critical for donor trust and compliance.
Can a religious trust get 80G approval in India?
Purely religious trusts — those that benefit only one specific religious community — are expressly excluded from 80G approval under the proviso to Section 80G(5). However, a charitable trust that also has a religious element but operates for the benefit of all communities (irrespective of religion or caste) may be eligible for 80G on the charitable portion. Educational institutions and hospitals run by religious organizations that serve all communities regardless of religion are also eligible for 80G. The key test is whether the organization's charitable activities are "open to all" without religious discrimination.

Get 80G Registration for Your NGO in Pondicherry

We handle the complete 80G registration process — from verifying your 12A status and preparing documents to filing Form 10A on the IT portal and following up with CIT(E) for approval. We also assist with annual compliance including Form 10BD and Form 10BE filing to ensure your donors can always claim their deductions.

Apply for 80G Registration Call +91-95977-46476