NGO Tax Filing in India: A Complete Guide

Non-Governmental Organizations (NGOs) in India play a vital role in bridging gaps in development, supporting underserved communities, and promoting various social causes. While these organizations are primarily not-for-profit, they are still required to follow specific compliance norms—including tax filing—to maintain transparency and continue benefiting from tax exemptions.

In this blog, we’ll walk you through everything you need to know about NGO tax filing in India, including eligibility, deadlines, forms, and compliance requirements.

1. Types of NGOs in India

NGOs in India can be registered as:

• Trusts under the Indian Trusts Act, 1882

• Societies under the Societies Registration Act, 1860

• Section 8 Companies under the Companies Act, 2013

Regardless of the type, every registered NGO must comply with applicable taxation laws if they are receiving income, donations, or grants.

2. Taxability of NGOs

By default, income of an NGO is taxable under the Income Tax Act, 1961. However, if the NGO is registered under Section 12A/12AB and Section 80G, it can avail exemptions and offer tax benefits to donors.

• Section 12A/12AB: Provides exemption from income tax on income used for charitable or religious purposes.

• Section 80G: Allows donors to claim tax deductions on donations made to the NGO.

Note: From April 1, 2021, all existing registrations under 12A and 80G must be revalidated under the new registration scheme introduced by the Income Tax Department.

3. Mandatory Tax Filings for NGOs

a) Income Tax Return (ITR-7)

• NGOs must file ITR-7 if they are claiming exemption under Sections 11 and 12.

• Filing must be done online on the income tax e-filing portal.

• Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) is required to verify the return.

b) Annual Report and Audit

• If the total income before exemption exceeds ₹2.5 lakh, the NGO must get its accounts audited by a Chartered Accountant.

• The audit report (Form 10B) must be filed along with the ITR.

c) Form 10A / 10AB

• Used for applying or renewing registrations under Sections 12A and 80G.

• Must be filed through the income tax portal.

d) Form 10BD & 10BE (for donors)

• Form 10BD: NGOs must submit a statement of donations received during the financial year.

• Form 10BE: A certificate that must be issued to each donor, enabling them to claim deductions under Section 80G.

4. Due Dates for NGO Tax Filing

Pro Tip: Missing these deadlines may result in penalties and cancellation of registration under 12A/80G.

5. Key Considerations for NGOs

• Maintain proper books of accounts and documentation for income, donations, grants, and expenditures.

• Avoid using income for non-charitable purposes to retain tax exemptions.

• NGOs receiving foreign donations must comply with FCRA (Foreign Contribution Regulation Act) requirements.

6. Common Mistakes to Avoid

• Not renewing 12AB/80G registration under the new regime.

• Failing to file Form 10BD and 10BE on time.

• Mixing charitable and commercial activities without proper segregation.

• Not maintaining donor details correctly.

7. Conclusion

Tax compliance for NGOs in India is not just a legal formality—it is crucial for maintaining credibility, attracting donors, and continuing operations smoothly. Timely tax filing, accurate record-keeping, and up-to-date registrations help NGOs stay aligned with regulations while focusing on their social mission.

If you’re an NGO or planning to start one, consider consulting with a tax professional to ensure full compliance and optimize the benefits available under the law.