80g Registration (Donations Exemption)
80G Registration is a certification granted by the Income Tax Department of India that allows donors to claim tax deductions on the donations made to eligible NGOs, trusts, or charitable institutions. It helps NGOs attract more donors, as contributions made under 80G can reduce the donor’s taxable income.
Types of 80G Registration
80G registration allows NGOs to offer tax benefits to donors while maintaining compliance with income tax laws.
Permanent 80G Registration
Granted to NGOs with consistent compliance and valid charitable activities, without a renewal requirement.
Provisional 80G Registration
Provided initially for new organizations, usually valid for 3 years, after which permanent approval must be obtained.
Renewal Compliance
Ensures NGOs maintain all records and reporting to retain or upgrade provisional registration.
Donation Category Specific Registration
Certain 80G categories allow different levels of donor tax deductions.
12A Linked 80G Registration
Most NGOs obtain 12A registration first to make 80G registration valid and compliant.
Audit & Reporting Compliance
Annual audits and reports are required to ensure transparency and lawful use of funds.
Why 80g registration is Important?
Eligibility Criteria
Only NGOs registered under Society Act, Trust Act, or Section 8 Company Act can apply for 80G.
Charitable Purpose
NGOs must not use donations for personal gains or non-charitable activities.
Tax Benefits for Donors
Donors can claim up to 50% or 100% deduction on contributions, depending on the category of donation.
12A Registration Link
Most NGOs apply for 12A Registration along with 80G to get income tax exemption on their own earnings.
FAQs
Who can apply for 80G registration?
Any NGO, charitable trust, or Section 8 company engaged in social, educational, or charitable activities can apply.
What is the validity of 80G registration?
Initially, NGOs get provisional approval for 3 years. After fulfilling compliance requirements, they can obtain permanent 80G registration.
How much tax deduction can donors claim?
Donors can claim either 50% or 100% deduction of the donated amount, depending on the type of institution they donate to.
Is 12A registration necessary before applying for 80G?
Yes, in most cases, NGOs are required to have 12A registration before they can apply for 80G.
Can foreign donations be exempted under 80G?
No, 80G is applicable only for Indian taxpayers. For foreign donations, NGOs need FCRA registration.