Income-Tax Exemption and Donor Deduction Approval Support

Charitable trusts, religious institutions, NGOs, societies and Section 8 companies may be required to obtain registration or approval under the applicable provisions of the Income-tax law to claim exemption on their income and to enable eligible donors to claim deduction for donations.

Under the Income-tax Act, 1961, these were commonly referred to as 12A / 12AB registration and 80G approval. Under the Income-tax Act, 2025, the corresponding framework has been reorganised, including registration provisions for non-profit organisations and related approval requirements. For website and client communication, we describe these services as income-tax exemption registration and donor deduction approval support to remain aligned with the applicable law.

Our support includes:

• Registration / approval support for charitable and religious institutions under the applicable Income-tax law
• Income-tax exemption registration support for trusts, NGOs, societies and Section 8 companies
• Donor deduction approval support for eligible institutions
• Provisional registration / approval support, wherever applicable
• Final registration / approval support, wherever applicable
• Renewal of registration / approval
• Review of charitable or religious objects
• Review of trust deed, memorandum, rules, by-laws or Section 8 documents
• Compilation of financial statements, activity reports and supporting records
• Preparation of application-related documentation
• Response to income tax department queries
• Representation support before authorities, wherever professionally permitted
• Advisory on validity, renewal timelines and transition from existing registrations

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Trust, NGO & Section 8 Compliance Services

Trusts, NGOs, societies and Section 8 companies operate in a highly regulated environment. Apart from maintaining proper books of accounts and filing returns, they must comply with income-tax exemption requirements, donor documentation, fund utilisation rules, CSR-related requirements, statutory audit, annual filings and regulatory reporting obligations.

T N K & Company provides specialised compliance, accounting, audit and advisory support to charitable trusts, religious trusts, NGOs, societies, Section 8 companies, educational institutions, charitable organisations and not-for-profit entities.

Our services are designed to help organisations maintain proper documentation, protect tax exemption status, comply with statutory requirements and present financial information in a transparent and accountable manner.

Our Trust, NGO & Section 8 Services Include

1. Trust, NGO and Section 8 Registration Support

We assist organisations in selecting and setting up the appropriate legal structure for charitable, religious, educational and social welfare activities.

Our support includes:

• Trust registration guidance
• Society registration coordination, where applicable
• Section 8 company incorporation support
• Object clause drafting support
• Trust deed review and drafting support
• MOA and AOA support for Section 8 companies
• PAN and TAN support
• Bank account documentation support
• Initial compliance guidance
• Advisory on suitable structure based on objectives

2. Income-Tax Exemption Registration Support

Eligible charitable and religious institutions are required to obtain registration under the applicable Income-tax law to claim exemption of income, subject to prescribed conditions.

Our support includes:

• Income-tax exemption registration application support
• Provisional registration support, wherever applicable
• Final / regular registration support, wherever applicable
• Renewal application support
• Documentation checklist preparation
• Object clause and activity review
• Compilation of financial records and activity reports
• Review of genuineness of activities and compliance records
• Response support for departmental queries
• Representation support before income tax authorities, where required

3. Donor Deduction Approval Support

Eligible institutions may obtain approval under the applicable Income-tax law so that donors can claim deduction for eligible donations, subject to prescribed conditions.

We assist in:

• Donor deduction approval application support
• Provisional approval support, wherever applicable
• Final / regular approval support, wherever applicable
• Renewal support
• Documentation compilation
• Donor receipt process review
• Donation records review
• Donor-wise documentation support
• Query reply drafting
• Representation support before authorities, where required

4. Transition Support Under Income-tax Act, 2025

With the transition from the Income-tax Act, 1961 to the Income-tax Act, 2025, existing registrations, approvals, forms, references and renewal procedures may require careful review.

We assist in:

• Review of existing exemption registration status
• Review of existing donor deduction approval status
• Validity and renewal timeline review
• Transition impact review under the Income-tax Act, 2025
• Guidance on applicable forms and procedural requirements
• Support for registration / approval applications under the new framework
• Documentation support for continuity of exemption and approval benefits
• Advisory on compliance requirements applicable to registered non-profit organisations

5. CSR-1 Registration and CSR Compliance Support

Organisations receiving CSR funds may be required to complete prescribed registrations and maintain proper fund utilisation documentation.

Our support includes:

• CSR-1 registration support
• Eligibility documentation review
• CSR fund accounting support
• Project-wise fund utilisation tracking
• CSR utilisation certificate support
• Donor / company reporting support
• CSR documentation review
• Compliance support for CSR-funded projects

6. Accounting and Bookkeeping for Trusts and NGOs

Proper accounting is essential for transparency, donor reporting, statutory audit and income tax compliance.

Our accounting support includes:

• Fund-based accounting support
• Donation accounting
• Corpus donation accounting
• Grant accounting
• Project-wise accounting
• Expense classification
• Bank reconciliation
• Ledger scrutiny
• Fixed asset accounting
• Utilisation tracking
• Year-end accounts finalisation

7. Audit and Assurance Support

Trusts, NGOs and Section 8 companies require proper audit and review of financial records.

Our audit services include:

• Trust audit
• NGO audit
• Section 8 company audit
• Statutory audit support
• Income and expenditure review
• Receipts and payments review
• Balance sheet review
• Donation and grant verification
• Application of income review
• Audit report preparation support
• Audit schedules and documentation support

8. Income Tax Return and Exemption Compliance

Charitable and religious institutions must file income tax returns and comply with exemption-related conditions.

Our services include:

• Income tax return filing support
• Exemption computation support
• Application of income review
• Accumulation of income review
• Corpus donation review
• Anonymous donation review
• Capital expenditure treatment review
• Related party payment review
• Statutory audit report filing support
• Compliance with exemption conditions

9. Annual Compliance for Section 8 Companies

Section 8 companies are required to comply with Companies Act and MCA filing requirements in addition to income tax requirements.

Our support includes:

• Board meeting documentation
• Annual general meeting support
• Financial statement filing support
• Annual return filing support
• Director KYC support
• Statutory register maintenance
• Auditor appointment compliance
• Board resolutions and minutes
• ROC / MCA filing support
• Event-based compliance support

10. Donation, Receipt and Donor Reporting Support

Donation documentation is critical for trust and NGO compliance.

We assist in:

• Donation receipt format review
• Donor register maintenance
• Corpus donation documentation
• Specific-purpose donation tracking
• Donor-wise reporting support
• Grant utilisation reporting
• Reconciliation of donations with bank statements
• Documentation for domestic and foreign donations, where applicable
• Support for donor audit requirements

11. Grant and Project Utilisation Support

Many NGOs and trusts receive funds for specific projects or purposes. Proper utilisation tracking is important.

Our support includes:

• Project-wise accounting
• Grant utilisation statement preparation
• Expense classification by project
• Budget vs utilisation review
• Supporting document compilation
• Utilisation certificate support
• Donor reporting support
• Management reporting for trustees / board

12. TDS, GST and Payroll Compliance for NGOs

Trusts and NGOs may also have statutory compliance obligations depending on their activities and payments.

Our support includes:

• TDS applicability review
• TDS payment and filing support
• GST applicability review
• GST registration guidance, where applicable
• GST return support, where applicable
• Payroll compliance review
• PF, ESI and Professional Tax support, where applicable
• Vendor payment compliance review
• Year-end statutory compliance review

13. Documentation and Governance Support

Proper records strengthen governance and help during audits, renewals and departmental proceedings.

We assist in:

• Trustee / board resolutions
• Meeting minutes
• Policy documentation support
• Authorisation letters
• Activity report support
• Compliance files
• Statutory registers, where applicable
• Financial documentation for approvals and renewals
• Internal documentation for grants and projects

14. Notices, Renewals and Representation Support

Trusts and NGOs may receive notices or queries from income tax, ROC, GST or other regulatory authorities.

Our support includes:

• Notice review
• Reply drafting
• Document compilation
• Response to registration-related queries
• Response to exemption-related queries
• Renewal support
• Demand review
• Rectification support
• Written submissions
• Representation support before authorities, where applicable

15. Advisory on Compliance Risk and Exemption Protection

Non-compliance may affect exemption benefits and create tax exposure. We assist organisations in identifying and managing compliance risks.

Our support includes:

• Review of object clauses and activities
• Review of commercial activity exposure
• Review of application of income
• Related party transaction review
• Corpus and earmarked fund review
• Review of accumulation and utilisation
• Compliance calendar preparation
• Risk identification and corrective action guidance

Common Trust, NGO and Section 8 Matters We Handle