Income Tax approval is the most consequential regulatory milestone for every Indian charitable trust, religious trust, Section 8 company, and society — converting it from a generic legal entity into a tax-exempt charitable organisation recognised by the Commissioner of Income Tax (Exemptions). Under the post-2021 framework, every charitable / religious entity in India must hold valid registration under Section 12AB of the Income-tax Act 1961 to claim exemption of its income under Sections 11 and 12, and a separate approval under Section 80G(5) to enable donors to claim tax deduction on contributions. Specified educational, medical, and government-funded entities additionally apply for approval under Section 10(23C).
The approval architecture today is fully online, time-bound, and cyclical — every trust must file Form 10A (for first-time / provisional registration) or Form 10AB (for re-validation, regular registration, or modification triggers) on the income-tax e-filing portal, with documentary proof of objects, governance, financials, and activities. Provisional registration is granted for 3 years; regular registration is valid for 5 years and must be renewed at least 6 months before expiry. Our Income Tax approval services for trusts help public charitable trusts, religious trusts, family / private trusts, Section 8 companies, gratuity / superannuation funds, and societies secure and maintain end-to-end approvals — Sec 12AB registration, Sec 80G approval, Sec 10(23C) approval, CSR-implementer eligibility under Companies (CSR Policy) Rules 2014, FCRA pre-conditions, and ongoing CIT-Exemptions correspondence.
Newly registered trusts, societies, or Section 8 companies seeking first-time tax recognition — Form 10A provisional registration for both Sec 12AB and Sec 80G in one cycle.
Pre-2021 trusts migrating to the new Sec 12AB regime, or trusts approaching the end of their 5-year cycle — Form 10AB regular registration with documentary proof of activities.
Companies incorporated under Sec 8 of Companies Act 2013 — incorporation alignment with charitable objects, MGT-7 / AOC-4 readiness, and Sec 12AB / 80G application.
Schools, colleges, universities, hospitals, and medical institutions — choice between Sec 12AB and Sec 10(23C); approval routes (iiiad / iiiae / vi / via) and ₹5 crore receipt threshold mapping.
Trusts that have amended objects, beneficiaries, or activities — Form 10AB re-validation under Sec 12A(1)(ac)(v) within 30 days to preserve continuity of exemption.
Trusts seeking CSR-implementer status under Companies (CSR Policy) Rules 2014 — Sec 12AB + Sec 80G combo, 3-year track record, and Form CSR-1 filing on the MCA portal.
Defines "charitable purpose" — relief of poor, education, yoga, medical relief, environment preservation, preservation of monuments, advancement of any other object of general public utility (GPU).
Post-2021 single registration framework — provisional (3 years for new trusts) and regular (5 years) — replaces erstwhile Sec 12AA. Mandatory for Sec 11 / 12 income exemption.
Approval under Sec 80G(5) enables individual / corporate donors to claim 50% / 100% deduction on donations — separate application from Sec 12AB; mandatory for fundraising and CSR-implementer status.
Online form for first-time provisional registration — applicable to new trusts that have not yet commenced activities. Granted within prescribed timelines and valid for 3 years.
Online form for conversion of provisional to regular registration, 5-year renewal, fresh registration on object modification, or fresh approval under Sec 10(23C) / 80G.
Alternative approval route for educational and medical institutions — sub-clauses (iiiad), (iiiae), (vi), (via); ₹5 crore receipt threshold determines self-claim vs CIT-approval requirement.
Annual statement of donations received (Form 10BD) and donor-wise certificate (Form 10BE) — mandatory for Sec 80G-approved trusts; non-filing leads to penalty & donor-deduction denial.
Specifies conditions under which Sec 11 / 12 exemption is denied — application of income for non-charitable purposes, benefit to specified persons, anonymous donations beyond limits.
Form 10A filing for first-time provisional registration of new trusts / Sec 8 / society — object review, document pack, e-filing, and approval-order tracking till issue.
Form 10AB filing for conversion of provisional to regular and 5-year renewal — activity proof pack, financials, and CIT-Exemptions follow-through till issuance of regular order.
Sec 80G(5) approval and renewal application — Form 10A / 10AB combo with Sec 12AB, donor-deduction continuity, and CSR-implementer eligibility build.
Application under Sec 10(23C) sub-clauses for educational and medical institutions — comparative analysis with Sec 12AB, threshold mapping, and exclusivity safeguards.
MCA portal Form CSR-1 filing for trusts / Sec 8 companies seeking CSR-implementer status — 3-year activity proof, Sec 12AB + 80G linkage, and corporate-donor readiness.
Form 10AB filing under Sec 12A(1)(ac)(v) within 30 days of trust deed amendment — preserving exemption continuity post object / beneficiary / activity change.
CIT approval under Rule 4 of Part C of the Fourth Schedule for approved gratuity, superannuation, and provident funds — trust setup linked to Sec 36(1)(v) deduction.
Annual donation statement (Form 10BD) and donor certificate (Form 10BE) filing — donor-wise PAN, donation type, and section claim under 80G(5).
Statutory audit of trust under Sec 12A(1)(b) / Sec 10(23C) — Form 10B for Sec 12AB-registered trusts; Form 10BB for Sec 10(23C)-approved entities; income application analysis.
Annual ITR-7 filing — exemption claim, accumulation u/s 11(2), corpus donation tagging, anonymous donation review, and TDS / advance tax reconciliation.
Response to Sec 12AB cancellation notice, Sec 80G withdrawal show-cause, Sec 13 disqualification observation, and appeal before CIT(A) / ITAT where required.
FCRA registration / prior permission alignment with Sec 12AB / 80G — 3-year prior existence, ₹15-lakh activity-spend test, and SBI Main Branch designated bank account setup.
First-time trust / society / Sec 8 incorporation — Form 10A provisional Sec 12AB and 80G needed to start fundraising, donor outreach, and CSR-implementer build-up.
Existing 5-year regular Sec 12AB / 80G expires — Form 10AB renewal must be filed at least 6 months before expiry to avoid lapse and disruption.
Provisional 3-year Sec 12AB / 80G converting to regular 5-year — Form 10AB with activity proof to be filed within 6 months of activity commencement / before expiry.
Object / beneficiary / activity modification triggers Sec 12A(1)(ac)(v) — Form 10AB re-validation within 30 days; failure denies exemption.
Indian companies offering CSR funding require implementer to hold valid Sec 12AB + 80G with 3-year track record; Form CSR-1 registration on MCA portal mandatory.
Failure to file annual donation statement triggers ₹200 / day penalty and denies donor's 80G claim — urgent remediation and revised filings needed.
Notice for cancellation of Sec 12AB / 80G — Sec 13 disqualification, anonymous donation excess, or non-genuine activity allegation — defence and remediation critical.
Pre-2021 Sec 12AA-registered trusts that have not yet migrated to Sec 12AB regime — urgent Form 10A / 10AB filing to retain exemption status.
Review of trust deed, governance, activities, and financials — mapping to Sec 12AB, Sec 80G, Sec 10(23C), CSR-implementer, and FCRA suitability.
Activity proof curation, financial pack assembly, supplementary deed alignment, trustee KYC, and pre-application gap closure.
Online application on income-tax portal with DSC of authorised trustee — section-wise application, documentary annexures, and ARN tracking.
Response to queries / hearings before CIT-E, additional submissions, and follow-through till issuance of formal approval order on portal.
Form 10BD / 10BE filings, ITR-7, Form 10B / 10BB audit, donor communication, CSR-implementer database update, and renewal calendar setup.
Partner with our trust tax specialists for end-to-end Sec 12AB registration, Sec 80G approval, Sec 10(23C) approval, Form 10A / 10AB e-filing, Form CSR-1, and ongoing CIT-Exemptions correspondence for FY 2026–27.
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