Section 80G of the Income Tax Act, 1961 is one of the most important provisions for the Indian nonprofit sector. It allows individuals and companies who donate to approved NGOs and charitable trusts to claim a tax deduction on the donated amount. For NGOs, having an 80G registration is practically essential — it makes your organisation more attractive to donors and signals legitimacy to institutional funders.

This guide explains how Section 80G works from both the NGO's perspective and the donor's perspective, what the registration process looks like, and what compliance obligations come with it.

How Does Section 80G Work?

When a donor gives money to an NGO that has a valid 80G registration, the donor can deduct the donated amount (fully or partially) from their taxable income while filing their ITR. This reduces their tax liability.

The deduction is available to:

  • Individual taxpayers
  • Hindu Undivided Families (HUFs)
  • Companies (under CSR or otherwise)
  • Firms and other entities

Deduction Categories

Not all donations qualify for the same deduction. The Income Tax Act categorises them:

  • 100% deduction without limit: Donations to the Prime Minister's National Relief Fund, National Defence Fund, and a few other government funds.
  • 100% deduction with limit: Donations to certain government-approved institutions (subject to 10% of adjusted gross total income).
  • 50% deduction without limit: Very rare category.
  • 50% deduction with limit: This is the most common category for NGOs registered under 80G. Donors can claim 50% of the donation amount as a deduction, subject to a ceiling of 10% of their adjusted gross total income.

For example, if a donor with an adjusted gross total income of Rs 10,00,000 donates Rs 50,000 to your NGO (50% with limit category), they can claim a deduction of Rs 25,000 (50% of Rs 50,000), as long as the total donations do not exceed Rs 1,00,000 (10% of Rs 10,00,000).

How to Get 80G Registration for Your NGO

Eligibility

To apply for 80G registration, your organisation must be:

  • A charitable trust, society, or Section 8 company
  • Registered under the applicable law (Indian Trusts Act, Societies Registration Act, or Companies Act)
  • Established for charitable purposes (education, medical relief, poverty alleviation, etc.)
  • Not operating for the benefit of any particular religious community or caste (with some exceptions for religious trusts that also do charitable work)

Application Process

Since the Finance Act 2020, the 80G registration process has been streamlined. Here is the current procedure:

  1. Apply online on the Income Tax e-filing portal using Form 10A (for new registrations) or Form 10AB (for renewal or conversion from provisional to regular).
  2. Submit documents: Trust deed, registration certificate, audited financial statements for the last 3 years (if available), list of donors and activities, PAN of the trust, and details of trustees/office bearers.
  3. Assessment by PCIT/CIT: The Principal Commissioner or Commissioner of Income Tax will review your application. They may ask for additional documents or conduct an inquiry.
  4. Approval: If satisfied, the PCIT/CIT will issue the 80G registration certificate with a validity period (typically 5 years for regular registration).

Provisional vs Regular Registration

New organisations that have not yet started operations can apply for a provisional 80G registration valid for 3 years. Before the provisional registration expires, you must apply for conversion to regular registration using Form 10AB, supported by your actual activity and financial records.

Compliance Obligations After Getting 80G

Getting 80G registration is not a one-time event. You must maintain ongoing compliance:

  • File Form 10BD annually: Report all donations received during the financial year by 31st May.
  • Issue proper donation receipts: Every receipt must contain your 80G registration number, validity period, PAN, and donor details.
  • Maintain books of accounts: Keep detailed records of all income, expenditure, donations, and investments.
  • File ITR-7: File your income tax return annually before the due date.
  • Spend at least 85% of income: Your trust must spend at least 85% of its income during the year (or accumulate with proper Form 10 filing).
  • Renewal: Apply for renewal before the registration expires. Do not let it lapse.

What Happens If 80G Registration Lapses or Is Cancelled?

If your 80G registration expires and you have not applied for renewal, or if it is cancelled due to non-compliance:

  • Donors can no longer claim tax deductions for donations to your NGO
  • You lose credibility with institutional and CSR donors
  • You may face penalties for the period of non-compliance

This is why it is critical to track your 80G validity dates and start the renewal process at least 6 months before expiry.

80G and FCRA: Are They Related?

80G and FCRA are independent registrations. 80G relates to domestic donations and tax deductions. FCRA (Foreign Contribution Regulation Act) relates to receiving foreign donations. An NGO can have both, either, or neither. However, many institutional donors (especially CSR departments) expect you to have at least 80G, and international donors often require FCRA.

How Donateazy Helps With 80G Compliance

Donateazy is built specifically for the Indian compliance landscape. Here is how it helps with 80G:

  • 80G details on every receipt: Your 80G registration number, validity period, and PAN are automatically printed on every donation receipt.
  • Form 10BD export: Generate the 10BD filing CSV with one click from your dashboard — no spreadsheet wrangling needed.
  • Donor PAN collection: The donation form collects PAN at the point of donation, so your data is always filing-ready.
  • Compliance reminders: Get alerts for 10BD deadlines, ITR-7 due dates, and 80G renewal timelines.

If your NGO has 80G registration (or is planning to apply), having the right software in place makes compliance significantly easier. Sign up for Donateazy free and start managing your 80G donations properly from day one.