80G Registration in India

80G Registration is a certification granted to charitable organizations, including Trusts and Section 8 Companies, which allows donors to claim tax deductions on donations made to the organization. It is crucial for non-profit organizations seeking to attract donations by providing tax incentives. Under Section 80G of the Income Tax Act, 1961, donors can claim tax deductions of up to 50% of the donated amount from their taxable income — in specific cases, organizations may qualify for a 100% tax deduction.

1. Charitable Trusts Public or private trusts engaged in charitable activities.
2. Non-Governmental Organizations (NGOs) NGOs undertaking charitable or public welfare activities.
3. Section 8 Companies Non-profit companies registered under Section 8 of the Companies Act, 2013.
4. Societies Registered societies carrying out charitable purposes.

Organizations must satisfy the following conditions to qualify for 80G registration.

• Charitable Purpose The organization should be involved in charitable activities such as relief to the poor, education, medical relief, and the advancement of any other object of general public utility.
• No Private Benefit Activities should not benefit specific religious communities or castes.
• Non-Profit Status Must be registered as a non-profit entity — a Trust, Society, or Section 8 Company.
• Fund Utilization The organization should not use any income or assets for purposes other than charitable purposes, and no part of its income should benefit trustees or members.
• Accounting Requirements Must maintain proper records of receipts, income, and expenditures.
• Political Activity Restriction The organization should not engage in any political activities.

Both structures are eligible for 80G registration, but they are governed differently and operate under distinct legal frameworks.

• Trusts Governed by the Indian Trusts Act, 1882. Can function as public charitable trusts benefiting the public, with trustees managing trust assets for charitable purposes.
• Section 8 Companies Governed by the Companies Act, 2013. Incorporated to promote charitable objectives such as commerce, art, science, education, religion, and social welfare; function like regular companies but cannot distribute profits — all profits are reinvested.

80G registration turns your organization’s tax incentive into a fundraising advantage, making donors more willing to contribute.

• Tax Deduction for Donors Donors can claim a deduction of 50% of the donated amount from their taxable income, reducing their tax liability. In certain cases, the deduction may go up to 100%.
• Increased Donations Organizations with 80G certification are more likely to attract donations because donors are incentivized by the tax deduction.
• Credibility Certification enhances organizational transparency and credibility with donors, institutions, and government bodies.
• Government and Foreign Funding Improves eligibility for government grants and foreign funding.

Keep the following documents ready before filing the 80G registration application.

1. Form 10G The prescribed application form for 80G registration.
2. PAN Card PAN card of the trust, NGO, or Section 8 company.
3. Registration Certificate Trust Deed, Society papers, or Section 8 company incorporation documents.
4. MoA or Trust Deed Memorandum of Association or Trust Deed of the organization.
5. Financial Statements Income/expenditure accounts, balance sheets, and profit & loss statements for the last 3 years.
6. List of Trustees/Directors Names and addresses of all trustees or directors.
7. Details of Charitable Activities A description of charitable activities undertaken previously.
8. Donor List List of donors along with donation details.
9. Bank Account Details Bank account details and statements of the organization.
10. No Objection Certificate (NOC) NOC from the landlord if the registered office is rented.