✅ Form 10A / 10AB 80G Filing✅ 50% / 100% Donor Deduction✅ Form 10BD Annual Filing✅ Form 10BE Donor Certificates
Complete Guide to Section 80G Approval for Trusts & NGOs
Section 80G of the Income Tax Act, 1961 is a powerful fundraising tool for charitable organisations in India. When a trust, NGO, or Section 8 company obtains Section 80G approval from the Principal Commissioner of Income Tax (PCIT), its donors — individuals, HUFs, firms, and companies — become eligible to claim a deduction of 50% or 100% of the donated amount from their taxable income. This tax benefit makes donating to your organisation significantly more attractive, especially for corporate donors directing CSR funds and high-net-worth individuals making large charitable contributions.
Prior to the Finance Act 2020, 80G approvals were granted indefinitely once obtained. The new framework — effective from April 2021 — introduced periodic renewal every 5 years and bundled 80G approval with Section 12AB registration. This means a trust can now obtain both income tax exemption (12AB) and donor deduction eligibility (80G) through a single application, with both valid for the same period. The bundled system also introduced new annual compliance obligations — Form 10BD (donor statement) and Form 10BE (donor certificates) — that trusts must complete every year to maintain donor deduction eligibility.
Taxvio, based in Khatauli (Muzaffarnagar, UP), provides end-to-end Section 80G approval services — fresh applications, renewals, annual Form 10BD filing, Form 10BE generation, and complete post-approval compliance. Our CA-assisted team ensures your organisation is always 80G compliant, so your donors can always claim their deductions without issues.
Who Should Obtain Section 80G Approval — and Why
Every charitable trust and NGO that raises funds from donors should obtain 80G approval. Here is why it is essential for fundraising success:
Individual donors — Salaried employees and business owners who donate to 80G-approved organisations can claim deduction in their ITR, effectively reducing their net cost of donation by 15%–30% depending on their tax bracket. This makes them far more willing to donate.
Corporate donors & CSR — Companies directing CSR funds under Section 135 of the Companies Act to external agencies require those agencies to hold valid 80G approval. Without 80G, corporates cannot route CSR to your organisation through the standard CSR deduction path.
HUFs and partnership firms — HUFs, partnership firms, and LLPs making donations to charitable causes can also claim 80G deductions — but only if the recipient organisation has valid approval.
Institutional funding — Many domestic foundations and grant-making institutions require recipient NGOs to hold both 12AB and 80G approval as a prerequisite for funding applications.
Foreign funding (FCRA) — While FCRA registration governs receipt of foreign contributions, domestic 80G approval enhances credibility with international grant bodies and their Indian counterparts.
Eligibility Conditions for Section 80G Approval
The following conditions must be satisfied for an organisation to obtain and maintain 80G approval:
Valid Section 12AB registration — The organisation must hold a valid 12AB registration. Since 80G approval is now bundled with 12AB, it is applied for simultaneously. An organisation without 12AB cannot obtain 80G.
Charitable objects only — The organisation must be established solely for charitable purposes. Organisations with objects that benefit specific religious communities or castes do not qualify for 80G (though they may qualify for 12AB).
No income applied for non-charitable purposes — Income of the organisation must not be applied for the benefit of particular religious communities or castes. General religious trusts serving all communities may qualify.
Regular books of accounts maintained — The organisation must maintain proper books of accounts, get them audited (Form 10B/10BB), and file ITR-7 annually.
No business income — If the organisation has business income, it must maintain a separate account for such income and ensure it is not applied for non-charitable purposes. Business income is allowed but must not constitute the primary activity.
No violation of any condition — Violations of the trust deed, improper application of income, or failure to file annual compliances can lead to cancellation of 80G approval by the PCIT.
Section 80G Deduction Rates — Category-Wise Guide
Section 80G deductions are categorised into four groups based on the nature of the recipient fund or institution. The deduction rate and qualifying limit differ for each category:
Category
Examples
Deduction Rate
Qualifying Limit
100% deduction — No qualifying limit
PM National Relief Fund, PM Cares Fund, National Defence Fund, National Foundation for Communal Harmony, Clean Ganga Fund
100%
No limit — full donation deductible
50% deduction — No qualifying limit
PM Drought Relief Fund, Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation
50%
No limit — 50% of full donation deductible
100% deduction — With qualifying limit
Donations to approved local authority, government, or institution for family planning, notified temples, mosques, etc.
100%
10% of adjusted gross total income
50% deduction — With qualifying limit
Most 80G-approved charitable trusts, NGOs, societies, and Section 8 companies (the most common category)
50%
10% of adjusted gross total income
Important: How the Qualifying Limit Works
For donations with a qualifying limit, the maximum deductible amount is the lower of: (a) 50% of donation amount, or (b) 10% of adjusted gross total income (AGTI). AGTI = Gross Total Income − all deductions under Chapter VI-A (except 80G) − long-term capital gains. For example: if a donor's AGTI is ₹10 lakh and they donate ₹3 lakh to a standard 80G trust, the deductible amount is 50% of ₹3L = ₹1.5L — which is within the 10% of ₹10L = ₹1L limit. So actual deduction is ₹1L (the lower figure). Excess donations in Category 3 & 4 cannot be carried forward to next year.
Form 10BD & Form 10BE — Annual Compliance for 80G Trusts
Since FY 2021-22, every trust with 80G approval must complete two new annual compliance steps. Failure to comply prevents donors from claiming their 80G deduction and attracts heavy penalties:
Form 10BD — Statement of Donations
Filed annually by the trust on the Income Tax portal
Due date: 31st May of the assessment year
Reports donor-wise details: name, PAN/Aadhaar, address, donation amount, mode of donation, and date
Covers all donations received during the financial year
Late filing penalty: ₹200 per day under Section 234G — no upper cap
Without Form 10BD, donor's 80G claim will be rejected by the IT Department
Form 10BE — Certificate of Donation
Issued by the trust to each donor based on Form 10BD data
Downloaded from the TRACES portal by the trust
Must be issued to donors by 31st May
Contains unique reference number that donor must quote in their ITR
Replaces the old manual receipt-based system — donors must have Form 10BE to claim deduction
Failure to issue Form 10BE makes donor's 80G deduction unclaimable
The introduction of Form 10BD and 10BE has made 80G compliance significantly more demanding for trusts. Every donation received must be tracked donor-wise, PAN/Aadhaar collected, and reported in Form 10BD by 31st May — even if only one donation was received during the year. Taxvio manages this compliance for trust clients as part of our annual trust compliance package.
Section 80G vs Section 12AB — Key Difference
Many trustees confuse 12AB and 80G — they serve different purposes and benefit different parties:
Section 12AB — Exempts the trust's own income from income tax. The trust pays no tax (or minimal tax) on income applied for charitable purposes. Primary beneficiary: the trust itself.
Section 80G — Allows donors to the trust to claim income tax deductions on their donations. Primary beneficiary: donors to the trust. The trust itself does not pay less tax due to 80G.
Both are needed — A trust ideally needs both 12AB (to protect its own income) and 80G (to attract more donors). Since both are now processed together, applying simultaneously is standard practice.
Consequences of Non-Compliance for 80G-Approved Trusts
Maintaining 80G compliance is an ongoing obligation. Non-compliance has serious consequences for both the trust and its donors:
Section 234G — Form 10BD late filing penalty — ₹200 per day from the due date (31st May) until the actual filing date. Unlike most income tax penalties, Section 234G has no maximum cap — a 100-day delay means ₹20,000 penalty. A full year delay means ₹73,000.
Donor deduction rejected — If Form 10BD is not filed or is filed with incorrect donor PAN, the donor's 80G deduction claim is automatically rejected during ITR processing. This causes donor complaints and reputational damage to the trust.
Cancellation of 80G approval by PCIT — The Principal Commissioner can cancel 80G approval if the trust violates its objects, applies income for non-charitable purposes, fails to file ITR-7, or fails to maintain required books of accounts.
Loss of CSR eligibility — Companies route CSR funds to external agencies with valid 80G. Cancellation or lapse of 80G removes the trust from the list of eligible CSR recipients.
Renewal lapse — loss of donor deduction prospectively — If renewal is not filed at least 6 months before expiry, the 80G approval lapses. All donations received after lapse date are ineligible for donor deduction — seriously impacting fundraising.
Our Section 80G Approval & Compliance Process
Taxvio manages the complete 80G lifecycle — from initial application to annual Form 10BD filing and renewal — so your donors can always claim their deductions and your organisation stays fully compliant:
1. Eligibility Check & 12AB Status Verification
We verify that your trust holds valid 12AB registration (or is applying simultaneously) and that the trust's objects are purely charitable — without caste or community-specific restrictions that disqualify 80G eligibility.
2. Document Preparation
We prepare all required documents — trust deed, activity report, audited accounts, trustee details, and declarations regarding non-application of income for community-specific purposes.
3. Form 10A / 10AB Filing (80G Application)
We file Form 10A (fresh) or Form 10AB (renewal) on the Income Tax portal with 80G details included alongside the 12AB application. Both applications are filed simultaneously for efficiency.
4. PCIT Query Response
The Principal Commissioner may raise queries regarding the charitable nature of activities or request additional evidence. We prepare detailed responses with supporting documentation to facilitate approval.
5. 80G Certificate Obtainment
On approval, we obtain the 80G certificate with the trust's unique registration number that donors cite in their ITRs. The certificate is valid for 5 years alongside the 12AB registration.
6. Annual Form 10BD & Form 10BE Compliance
Each year, we file Form 10BD (donor statement) by 31st May, download Form 10BE certificates from TRACES, and issue them to donors — ensuring every donor can claim their 80G deduction without issues.
Documents Required for Section 80G Approval (Form 10A)
Since 80G is applied together with 12AB, most documents are common. The following are specifically required for 80G approval:
Trust deed / MOA / Constitution with charitable objects clearly stated (no caste/community-specific objects)
PAN of the trust and valid Section 12AB registration certificate (existing or applied simultaneously)
Audited financial statements for the last 3 years (if operational)
Details of activities conducted with evidence — beneficiary details, programme reports, photographs
Confirmation that no income applied for benefit of specific religious community or caste
Declaration that the trust does not have any business income, or if it does, that a separate account is maintained
List of trustees/governing body members with PAN, Aadhaar, and declaration of non-applicability of disqualification
Bank account statements of the trust showing donation receipts and charitable expenditure
For Annual Compliance (Form 10BD):
Complete donor register for the financial year — name, PAN/Aadhaar, address, amount, date, mode
Bank statements showing donation credits
Donation receipts issued to donors (manual receipts being replaced by Form 10BE)
TRACES login credentials of the trust for Form 10BE download
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Trusted for 80G Compliance by NGOs Across India
★★★★★
"Taxvio got us 80G approval along with 12AB in one application. Our corporate donors immediately increased their contributions because they could now claim the tax deduction."
Aastha Charitable Trust
Khatauli
★★★★★
"We were struggling with Form 10BD filing — didn't know how to collect PAN from all donors. Taxvio set up our donor tracking system and filed Form 10BD before the May deadline."
Udaan NGO
Muzaffarnagar
★★★★★
"Our 80G had lapsed due to non-renewal. Taxvio re-applied within weeks and our donors got their deduction certificates for the current year. Outstanding service and quick turnaround."
Section 80G allows donors to claim income tax deductions on donations made to approved charitable organisations. Depending on the category of the organisation, donors can deduct 50% or 100% of the donated amount from their taxable income (subject to 10% of adjusted gross total income limit for most NGOs). This reduces the effective cost of donation for the donor — for example, a 30% tax-bracket donor donating ₹1 lakh to a 50% deduction NGO effectively saves ₹15,000 in tax.
No. Section 80G approval requires valid Section 12AB registration as a prerequisite. Since the Finance Act 2020, both 12AB and 80G are processed together and are valid for the same period. A trust without 12AB cannot obtain 80G. Taxvio files both applications simultaneously to minimise delays and ensure coordinated approval.
Form 10BD is the annual statement of donations received, which every 80G-approved trust must file by 31st May on the Income Tax portal. It reports donor-wise details including name, PAN, donation amount, and mode. If not filed, donors cannot claim their 80G deduction in their ITR — causing donor dissatisfaction. The trust also faces ₹200/day penalty under Section 234G with no maximum cap.
Form 10BE is the certificate of donation issued by the trust to each donor. It is generated from the TRACES portal by the trust after filing Form 10BD and must be issued to donors by 31st May. Donors must quote the unique reference number on Form 10BE while claiming the 80G deduction in their ITR. Without Form 10BE, the deduction claim will be rejected during ITR processing.
80G approval is valid for 5 years (or 3 years for provisional). It must be renewed along with 12AB registration by filing Form 10AB at least 6 months before expiry. Failure to renew results in loss of 80G status — all donations received after lapse date become ineligible for donor deduction, severely impacting fundraising.
No. As per Section 80G(5D), donations of ₹2,000 or more made in cash are not eligible for 80G deduction. Only donations made by cheque, demand draft, net banking, UPI, or other digital modes qualify. Trusts should advise donors to make all donations above ₹2,000 through banking channels to ensure 80G deductibility.
Get 80G Approval & Attract More Donors to Your Trust
Enable your donors to claim 50% tax deduction on contributions, unlock CSR funding, and stay compliant with Form 10BD & 10BE. Taxvio's CA-assisted 80G service starts at ₹2,999. Serving Khatauli, Muzaffarnagar, Meerut and all of India online.
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