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Step-by-Step Guide to 80G Registration in India

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Financial Analyst

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Introduction to 80G Registration

Section 80G of the Income Tax Act, 1961 allows donors to claim tax deductions for donations made to eligible charitable institutions. To offer this benefit, NGOs must obtain 80G registration from the Income Tax Department.

This Saving Mantra guide explains the step-by-step process for 80G registration in India, covering eligibility, documentation, timelines, and post-registration compliance.

What is 80G Registration?

80G registration is an approval granted to:

  • Charitable Trusts
  • Registered Societies
  • Section 8 Companies

Once approved, donors can claim 50% or 100% tax deduction (with or without qualifying limits), depending on the nature of the institution.

Benefits of 80G Registration

For NGOs

  • Increased donor confidence
  • Higher fund inflow
  • Legal recognition under Income Tax Act

For Donors

  • Tax deduction under Section 80G
  • Proof of legitimate charitable contribution

Eligibility Criteria for 80G Registration

An organization must:

  • Be registered as Trust, Society, or Section 8 Company
  • Have charitable objectives only
  • Be registered under Section 12AB
  • Maintain proper books of accounts
  • Not use funds for religious or political purposes
  • Not distribute profits to members

Step-by-Step Process for 80G Registration in India

Step 1: NGO Legal Registration

Ensure your organization is legally registered under:

  • Indian Trusts Act
  • Societies Registration Act
  • Companies Act, 2013 (Section 8)

Step 2: Obtain 12AB Registration

80G approval is granted only to organizations holding valid 12AB registration from the Income Tax Department.

Step 3: Prepare Required Documents

The following documents are required:

  • NGO registration certificate
  • Trust deed / MOA & AOA
  • PAN of NGO
  • 12AB registration certificate
  • Audited financial statements (if available)
  • Activity report
  • Details of trustees/directors
  • Bank account details

Step 4: Online Application Filing

  • Log in to the Income Tax e-filing portal
  • File Form 10AB (or 10A for provisional approval)
  • Upload documents and declarations
  • Submit application using DSC or EVC

Step 5: Verification & Scrutiny

  • Income Tax Department may ask for clarifications
  • Additional documents may be requested
  • Physical inspection may be conducted in some cases

Step 6: Grant of 80G Certificate

Once approved:

  • 80G certificate is issued digitally
  • Validity: 5 years (provisional approval for 3 years)
  • Unique approval number allotted

Time Required for 80G Registration

  • Average processing time: 30 to 90 days
  • Depends on documentation and departmental review

Post 80G Registration Compliance

After approval, NGOs must:

  • Issue donation receipts with mandatory details
  • File Statement of Donations (Form 10BD)
  • Generate Form 10BE for donors
  • Maintain proper accounts
  • Renew 80G registration before expiry

Failure to comply can lead to cancellation of 80G approval.

Common Reasons for 80G Rejection

  • Non-charitable or ambiguous objectives
  • Missing 12AB registration
  • Incomplete documentation
  • Non-compliance with tax rules
  • Misuse of funds

How Saving Mantra Helps

Saving Mantra provides end-to-end 80G registration services, including:

  • Eligibility analysis
  • Documentation support
  • Online filing & follow-ups
  • Compliance & renewal assistance

Disclaimer

This article is intended for informational purposes only and does not constitute legal or tax advice. Provisions of the Income Tax Act and related rules are subject to change. Readers should consult qualified professionals before applying. Saving Mantra shall not be responsible for decisions taken based on this content.

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