Pillar · 41 terms

NGO compliance glossary.

Every registration, form and rule an Indian NGO runs into - defined in plain English, each linked to the full guide. The fastest way to find what a term means and what to do about it.

1

12A registration ↗

The income-tax registration (Section 12A/12AB) that makes a charitable trust or institution exempt from income tax on its surplus. It is the gateway registration - 80G, CSR-1 and most grants depend on it. Full guide →

12AB ↗

The 2021 regime that made 12A and 80G registrations renewable every five years instead of being perpetual. Existing NGOs had to re-register via Form 10A; renewals run on Form 10AB. Full guide →

8

80G 50% vs 100% deduction ↗

Most 80G donations give the donor a 50% deduction; a limited set of funds and causes notified by government give 100%. The NGO's approval letter states which applies. Full guide →

80G registration ↗

Income-tax registration that lets donors claim a deduction (usually 50%) for donations to the NGO. Without it, donors get no tax benefit and the NGO cannot issue valid 80G receipts. Full guide →

80G renewal ↗

Under 12AB, 80G must be renewed every five years through Form 10AB, filed within the window before expiry. A lapse stops the NGO from issuing deduction-eligible receipts. Full guide →

A

Accumulation (Form 10) ↗

When a trust cannot apply 85% of income in the year, it can set aside the shortfall for up to five years by filing Form 10 and stating the purpose - otherwise the shortfall is taxed. Full guide →

AIS reconciliation ↗

The Annual Information Statement shows donors the 80G donations the NGO reported in Form 10BD. If the NGO's 10BD does not match the donor's claim, the deduction is denied at assessment. Full guide →

Anonymous donation (Section 115BBC) ↗

Donations where the NGO keeps no record of the donor's identity. Beyond a threshold (higher of ₹1 lakh or 5% of total donations) they are taxed at 30%, with carve-outs for wholly religious trusts. Full guide →

C

Compliance calendar ↗

The month-by-month map of statutory due dates an Indian NGO faces - 10BD, 10BE, FC-4, FC-6, ITR-7, Form 10B, POSH return, CSR-2, TDS and GST. Full guide →

Corpus donation ↗

A donation given with a specific written direction that it form part of the corpus (capital). It is exempt but must be invested in Section 11(5) modes and is not counted toward the 85% application test. Full guide →

CSR-1 ↗

The MCA registration (Form CSR-1) an NGO must have to legally receive corporate CSR funds. Only entities with valid 12A and 80G (or 10(23C)) and a three-year track record qualify. Full guide →

CSR-1 vs 80G ↗

CSR-1 is MCA registration to receive corporate CSR money; 80G is income-tax registration for donor deduction. A corporate donor often needs both on the NGO before releasing funds. Full guide →

CSR-2 ↗

The MCA return through which a company reports its CSR spending. NGOs feel it indirectly: corporate donors need clean utilisation reporting from grantees to file it. Full guide →

D

Darpan (NGO Darpan) ↗

The NITI Aayog unique ID for NGOs. It is a prerequisite for CSR-1, FCRA and most government grants, generated using the Aadhaar and OTP of three office bearers. Full guide →

Designated FCRA account ↗

The single account at SBI Main Branch, New Delhi into which all foreign contributions must first be received. Funds may then move to a local utilisation account. Full guide →

Donor PAN threshold (10BD) ↗

For Form 10BD the NGO must capture the donor's PAN; missing PANs for reportable donations create reconciliation and reporting problems that need a mid-cycle fix. Full guide →

F

FC-3C (FCRA renewal) ↗

The FCRA renewal form. Registration is valid five years and FC-3C must be filed within the six-month window before expiry - there is no late grace period. Full guide →

FC-4 (FCRA annual return) ↗

The mandatory annual return of foreign contributions received and utilised, due by 31 December (nine months after year-end), filed even in a nil year. Full guide →

FC-6 ↗

The set of FCRA intimation forms (e.g. FC-6C/D/E) for reporting changes such as a change of designated bank account, office bearers or registered address. Full guide →

FCRA ↗

The Foreign Contribution (Regulation) Act, which governs how Indian NGOs receive and use foreign donations. Registration, a designated SBI Delhi account and annual FC-4 returns are core obligations. Full guide →

FCRA 20% administrative cap ↗

Under FCRA Rule 5, no more than 20% of foreign contributions in a year may be spent on administrative expenses; the rest must go to programme activity. Full guide →

FCRA prior permission ↗

A project-and-donor-specific approval for NGOs that lack the three-year track record needed for full FCRA registration, letting them receive a defined foreign grant. Full guide →

Form 10A ↗

The application form used to obtain (or migrate to) 12A and 80G registration under the 12AB regime, typically granting provisional registration first. Full guide →

Form 10AB ↗

The form for converting provisional 12A/80G to regular registration and for renewing them at the end of each five-year cycle. Full guide →

Form 10B / 10BB ↗

The audit reports a 12A trust files with its return. Form 10B applies above an income threshold (₹5 crore) or where foreign contribution or accumulation is involved; 10BB covers the rest. Full guide →

Form 10BD ↗

The annual statement of donations every 80G institution must file with the Income Tax Department by 31 May, listing each donor's PAN, amount and donation type. Full guide →

Form 10BE ↗

The 80G donation certificate the Income Tax portal generates after Form 10BD is filed. The NGO downloads and issues it to donors, who need it to claim their deduction. Full guide →

G

Governing body

The trustees, managing committee or board of directors legally responsible for an NGO's decisions, filings and use of funds.

I

ITR-7 ↗

The income-tax return for trusts, societies and Section 8 companies registered under 12A. It carries the income computation, application of income and exemption claims. Full guide →

M

Memorandum of Association

The charter document of a society or Section 8 company stating its objects and rules - the counterpart of a trust deed for non-trust NGOs.

N

NGO income tax ↗

The framework distinguishing an NGO's exempt income (voluntary contributions applied to charity) from taxable income (anonymous donations, certain business income, unapplied surplus). Full guide →

P

POSH Internal Committee ↗

Under the POSH Act, any workplace with ten or more workers - NGOs included - must constitute an Internal Committee, maintain a complaint log and file an annual return under Section 21. Full guide →

Provisional registration ↗

The initial three-year 12A/80G status granted to a new NGO on Form 10A, converted to regular registration via Form 10AB once activities have commenced. Full guide →

S

Schedule VII ↗

The Companies Act schedule listing the activities that qualify as CSR. An NGO's programmes must map to one of its categories for a corporate to fund them as CSR. Full guide →

Section 10(23C)

An alternative exemption route to Section 12A for certain educational and medical institutions and government-substantially-financed bodies, with its own approval and audit forms.

Section 11 (85% rule) ↗

The core exemption mechanism: a 12A trust must apply at least 85% of its income to charitable purposes in the year to stay fully exempt; the shortfall is taxed unless accumulated. Full guide →

Section 11(5) investment modes ↗

The restricted list of permitted investments (bank deposits, government securities and similar) in which a trust must hold its accumulated or corpus funds to keep exemption. Full guide →

Section 8 company ↗

A not-for-profit company registered under Section 8 of the Companies Act - one of the three primary NGO legal forms alongside a public charitable trust and a society. Full guide →

T

Trust deed

The founding document of a public charitable trust, setting out its objects, trustees and governance. Equivalent to a Memorandum for a society or Section 8 company.

U

Utilisation account ↗

A second bank account, at a bank of the NGO's choice, used to spend foreign funds after they first land in the designated SBI Delhi FCRA account. Full guide →

V

Voluntary contribution

A donation received without consideration. It is the NGO's primary income head and is exempt to the extent it is applied to charitable purposes under Section 11.

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