—Guide
80G Registration: How NGOs Enable Tax Deductions for Donors
How 80G approval works, what donors can claim, the provisional and regular stages, the donation statement NGOs must file, and why donors only get deductions if the NGO reports.
Donors are more likely to give when they can claim a tax deduction. For that, the charity needs 80G approval. This guide explains how it works under the Income-tax Act, 1961, applicable through FY 2025-26; the Income-tax Act, 2025 continues a similar regime from tax year 2026-27.
What 80G Gives Donors
Donors to approved institutions can deduct a percentage of their donation — typically 50% for most charities, subject to a limit of 10% of adjusted gross total income — when computing taxable income under the old regime. The deduction isn't available to individuals under the new tax regime, but companies and other donors still value it.
Stages
- Provisional approval for new organisations, usually for three years.
- Regular approval, applied for within the prescribed window after activities start.
- Renewal before expiry.
Most charities apply for 80G alongside 12AB.
Donation Reporting
80G-approved charities must file a statement of donations (Form 10BD) after the year-end, generally by 31 May, and issue certificates (Form 10BE) to donors. Donors' deductions are matched against these statements, so if the charity doesn't file, donors may lose their deduction.
Cash Donations
Cash donations above ₹2,000 don't qualify for deduction. Encourage donations by bank transfer, UPI or cheque.
Record Keeping
- Donor name, address and PAN.
- Date, amount and mode of donation.
- Whether the donation is for corpus or general purposes.
Getting Help
Think Filing obtains 80G approval and handles Form 10BD and 10BE compliance.