At a glance
| Approval (from 1 April 2026) | Donor deduction | Who can apply | Yearly filing | Validity | Our fee |
|---|---|---|---|---|---|
| s.354, Income-tax Act, 2025, via Form 104 or 105 | s.133: usually 50%, within 10% of adjusted gross total income | Registered non-profit organisations | Form 113 by 31 May; Form 114 to donors | 3 tax years provisional; 5 tax years regular | ₹3,499 plus GST |
What 80G approval does
80G approval does not exempt the NGO's income. It gives your donors a deduction for what they give you, which makes it easier to ask for money.
The approval is granted to the NGO. The benefit reaches the donor only when the NGO reports the donation to the department and issues a certificate. So 80G is both a one-time approval and a yearly compliance job.
Which Act applies to which year
Donations received in FY 2025-26 follow the Income-tax Act, 1961. Donations received from 1 April 2026 follow the Income-tax Act, 2025.
| Period | Approval | Donor deduction | Donation statement | Donor certificate |
|---|---|---|---|---|
| FY 2025-26 (AY 2026-27) | s.80G(5), Income-tax Act, 1961 | s.80G | Form 10BD | Form 10BE |
| Tax Year 2026-27 onwards | s.354, Income-tax Act, 2025 | s.133 | Form 113 | Form 114 |
Who can get 80G approval
Approval under section 354 is available to a registered non-profit organisation that meets the conditions in section 354(1). In practice that means a trust, society or Section 8 company that already holds income-tax registration.
12A registration comes first
Section 354 applies to a "registered non-profit organisation", which is an NGO registered under section 332, the old 12A. If your NGO is not yet registered, start with 12A registration. We explain the registration forms, validity and yearly duties there, so they are not repeated here.
Conditions in section 354(1)
The NGO must meet all of these conditions for donations to qualify:
- it is not expressed to be for the benefit of any particular religious community or caste;
- it is established in India for a charitable purpose, and its expenditure on religious purposes does not exceed 5% of its total income in the year;
- its constitution or rules do not allow its assets to be transferred except for charitable purposes;
- it maintains regular accounts of its receipts and expenditure;
- it delivers a statement of donations to the income-tax authorities, and a correction statement where needed, in the prescribed form;
- it furnishes a certificate to each donor specifying the amount of the donation.
We read your deed, bye-laws or MoA against these conditions before filing, because a clause that restricts benefits to one community can sink the application.
How to apply and how long approval lasts
You apply online on the income-tax e-filing portal. A new NGO that has not started work uses Form 104; an NGO that is working, or renewing, uses Form 105.
| Situation | Form | When to file | Validity |
|---|---|---|---|
| Activities not started | 104 (provisional approval) | Any time during the tax year from which approval is sought | Up to 3 tax years |
| Activities started | 105 (regular approval) | In the tax year from which approval is sought | 5 tax years |
| Provisional approval, activities have started | 105 | Within 6 months of starting activities | 5 tax years |
| Provisional approval expiring, activities not started | 105 | At least 6 months before expiry | 5 tax years |
| Approval due to expire | 105 | At least 6 months before expiry | 5 tax years |
The provisional order comes in Form 106 and the regular order in Form 107, each with a 16-digit Unique Registration Number. The 10-year validity that some NGOs get on registration does not apply to approval: 80G approval is renewed every 5 tax years.
There is no government fee for Form 104 or Form 105.
If you already hold 80G approval
An approval granted under the 1961 Act is treated as granted under the corresponding provision of the 2025 Act, so far as it is consistent with the new Act (section 536(2)(j)). It continues until its expiry date.
Check the date on your Form 10AC or 10AD order and file Form 105 at least 6 months before it. From donations received on or after 1 April 2026, report in Form 113 and certify in Form 114.
What your donors get
A donor to an approved NGO can deduct part of the donation from taxable income. For donations from 1 April 2026 the deduction is under section 133 of the 2025 Act; for FY 2025-26 it is under section 80G of the 1961 Act. The main rules are the same under both.
The deduction at a glance
| Rule | What it means for the donor |
|---|---|
| Rate for an approved NGO | 50% of the donation |
| Overall limit | Qualifying donations above 10% of adjusted gross total income are ignored |
| 100% category | Specified government funds, such as the PM CARES Fund and the National Defence Fund, not ordinary NGOs |
| Cash | No deduction for a cash donation above ₹2,000 |
| In kind | No deduction for goods or services; only a sum of money qualifies |
| Tax regime | Available only under the old regime, not the new regime |
| Reporting | The NGO must report the donation to the department; the donor should hold the Form 114 (or 10BE) certificate |
A worked example
A salaried donor in Kolkata gives ₹20,000 by UPI to an NGO approved under section 354 in Tax Year 2026-27. The donor files under the old regime and has adjusted gross total income of ₹8,00,000.
The 10% limit is ₹80,000, so the full ₹20,000 qualifies. The deduction is 50% of ₹20,000, which is ₹10,000. If the donor had handed over ₹5,000 in cash instead, that ₹5,000 would get no deduction at all.
When a donor gets nothing
The deduction fails in five common cases: the donor is in the new tax regime, the cash gift is above ₹2,000, the gift is in kind, the NGO's approval has lapsed, or the NGO has not reported the donation. The last one is the NGO's fault, and it is the one donors complain about.
If donors ask you to confirm how to claim, point them to our income tax return service.
The NGO's yearly duty: statement and certificates
Every approved NGO must file the donation statement once a year and give each donor a certificate. For donations from 1 April 2026, the statement is Form 113 and the certificate is Form 114.
Form 113 and Form 114
Form 113 is the statement of donations under section 354(1)(e) read with Rule 190 of the Income-tax Rules, 2026. It is due by 31 May of the tax year following the tax year in which the donations were received, so donations received in Tax Year 2026-27 are reported by 31 May 2027.
Once Form 113 is filed, Form 114 certificates are generated for each donor through the portal. The donor's PAN or other identity details, the amount and the mode of payment must match your receipts, or the donor's claim may not line up.
For donations received in FY 2025-26, the 1961-Act statement was Form 10BD, due by 31 May 2026, with Form 10BE certificates to donors. If that statement is still pending, talk to us now.
Late fee
The late fee is ₹200 for every day the statement or certificate is late. Under the 2025 Act it is in section 429, which caps the fee at the amount of the donations in respect of which the failure occurred.
For FY 2025-26 statements, the same ₹200 a day applies under section 234G of the 1961 Act, and section 271K of that Act provides a penalty of ₹10,000 to ₹1,00,000 for failing to furnish the statement or certificate.
Documents we need
For the approval application:
- trust deed, society registration certificate and bye-laws, or Section 8 certificate of incorporation with MoA and AoA;
- the NGO's PAN and its 12A registration order (Form 106 or 107, or the older 10AC or 10AD);
- annual accounts for up to the three preceding years, where the NGO has been operating;
- a detailed note on activities, and the split between charitable and religious spending, if any;
- NGO Darpan and FCRA details, if held.
For the yearly statement: a donor-wise list with name, address, PAN or other identity number, amount, date and mode of payment.
How we handle 80G approval
We keep the approval and the donor reporting in one workflow, so the two never drift apart.
- Registration check. We confirm your section 332 registration is in force and note its expiry. If it is not, we start with 12A.
- Condition review. We test your deed, bye-laws or MoA against section 354(1), including the 5% religious spending limit, and suggest fixes.
- Filing. We prepare and file Form 104 or Form 105 with the activity note and attachments, verified by DSC or EVC.
- Queries and order. We reply to any notice from the Commissioner and share the order with its Unique Registration Number.
- Donor set-up. We give you a receipt format and a donor register that capture what Form 113 needs, and diarise 31 May and the renewal date.
Fees
Our professional fee for 80G approval is ₹3,499. There is no government fee for filing Form 104 or Form 105.
| Item | Amount |
|---|---|
| Professional fee: 80G approval (Form 104 or Form 105) | ₹3,499 |
| Government fee | No government fee |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 22 September 2026.
The yearly Form 113 statement and Form 114 certificates are quoted separately, based on the number of donors.
Late fee (not a fee we charge): ₹200 per day for a late statement or certificate, capped at the donation amount (s.429, Income-tax Act, 2025).
80G and 12A side by side
12A registration protects the NGO's income; 80G approval gives donors a deduction. You need 12A first.
| Point | 80G approval | 12A registration |
|---|---|---|
| Section (2025 Act) | s.354; donor deduction s.133 | s.332 |
| Who benefits | The donor | The NGO |
| Validity | 3 tax years provisional; 5 tax years regular | 3 tax years provisional; 5 or 10 tax years regular |
| Yearly filing linked to it | Form 113 statement and Form 114 certificates | Audit report and return |
| Our page | This page | 12A registration |
Mistakes that cost donors their deduction
Most 80G problems show up in May, when donors file returns and the NGO's statement does not match.
- Missing or wrong PAN on the receipt. Collect identity details at the time of the donation, not in May.
- Taking cash above ₹2,000. The donor gets no deduction. Ask for UPI, cheque or bank transfer.
- Issuing receipts for goods. Donations in kind do not qualify; acknowledge them, but do not issue a deduction certificate.
- Filing Form 113 late. The late fee runs every day and donors cannot match their claim.
- Letting approval lapse. Renew in Form 105 at least 6 months before expiry.
- Religious spending creeping above 5%. It can breach the section 354(1) condition.
Why NGOs use Regikart for 80G
We are a CA and CS firm with offices in Kolkata, Delhi and Bengaluru, working with 250+ clients across India. A chartered accountant reviews every approval application and every donation statement before it is filed.
We can also handle the rest of your NGO's setup: NGO registration, 12A registration, NGO Darpan registration, CSR-1 and accounting, so the donor register, the books and the statement tell the same story.