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NGO and Non-Profit Accounting and Compliance Services in India

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Section 12AB Registration: Income tax exemption for NGO income; Form 10A (new) or 10AB (renewal); valid 5 years; 10 years for NGOs with income up to Rs 5 crore per Finance Act 2025

Section 80G(5) Approval: Donor tax deductibility - donors claim 50% deduction; Form 10G application; Form 10BD donor statement by 31 May; Form 10BE certificates

FCRA Compliance: Foreign Contribution (Regulation) Act, 2010 - Form FC-3A registration; SBI FCRA account; annual FC-4 by 31 December; 20% admin expense cap

CSR-1 and Annual Compliance: Form CSR-1 with MCA for corporate grants; ITR-7 under Section 139(4A); Form 10B/10BB audit; fund-wise bookkeeping

Trusted by 300+ NGOs, charitable trusts, and Section 8 companies across India | 500+ 12AB and 80G registrations filed

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Real Stories from Real People

Hear how teams across industries use Patron to save time, cut costs, & stay in control.

“

Our charitable trust's 12AB was about to lapse and we had no idea. Patron Accounting identified the issue, filed Form 10AB within a week, and saved us from an entire year of taxable donations. We've been with them for 3 years now.

Ramesh Tiwari

Secretary, Education Trust, Pune

★★★★★

2 months ago

“

FCRA compliance became extremely strict after the 2020 amendments. Patron Accounting set up our separate SBI account, monitors our 20% admin cap monthly, and files FC-4 well before 31 December every year. Total peace of mind.

Sister Agnes

Director, Charitable Foundation, Mumbai

★★★★★

1 month ago

“

We were losing CSR grants because we didn't have Form CSR-1. Patron's team checked our 12A/80G status, prepared all documentation, got the CA certification for Part 2, and we received our CSR Registration Number within 45 days.

Nikhil Kumar

CEO, Development NGO, Delhi

★★★★★

3 months ago

“

Form 10BD was new to us and we missed the deadline in the first year. Our donors couldn't claim 80G deductions and we lost several recurring donors. Since engaging Patron Accounting, every Form 10BD and 10BE is filed on time.

Priya Menon

Trustee, Health NGO, Bengaluru

★★★★★

4 months ago

“

As a Section 8 company, we have both Companies Act compliance and NGO compliance to manage. Patron handles everything - board minutes, AOC-4, MGT-7, 12AB, ITR-7, FCRA returns. One team for all our compliance needs.

Anand Sharma

Director, Section 8 Company, Hyderabad

★★★★★

5 months ago

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NGO and Non-Profit Accounting Services - Overview

📌 TL;DR - NGO and Non-Profit Accounting Services at a Glance

NGOs in India must hold active Section 12AB registration (income tax exemption), Section 80G(5) registration (donor deductibility), FCRA registration for foreign funds, and CSR-1 for corporate grants. Annual compliance includes ITR-7 by 31 October, Form 10B audit (if gross receipts exceed Rs 5 crore), and FCRA Form FC-4 by 31 December. Patron Accounting provides full NGO compliance from Rs 3,500 per month.

Non-profit accounting in India requires far more than maintaining donation registers. A charitable trust receiving CSR grants must hold a valid CSR-1 registration number. An NGO receiving a foreign donation without FCRA registration commits an offence under the FCRA, 2010. A trust that allows its Section 12AB registration to lapse will find all donations taxable until re-registration.

NGOs, charitable trusts, societies, and Section 8 companies operate under a specialist compliance framework distinct from commercial entities. Income tax exemption requires Section 12AB; donor deductibility requires 80G(5); foreign funding requires FCRA; and CSR grants require Form CSR-1. Patron Accounting manages the entire compliance lifecycle.

Content is reviewed quarterly for accuracy.

What is NGO and Non-Profit Accounting?

NGO and non-profit accounting is specialist financial management for charitable trusts, societies, and Section 8 companies covering income tax exemption under Sections 11 and 12 (via Section 12AB registration), donor deductibility under Section 80G(5), FCRA compliance for foreign donations, CSR-1 registration for corporate grants, ITR-7 filing, and statutory audit under Form 10B or 10BB.

Unlike commercial accounting, NGO accounting requires fund-wise separation of corpus donations, restricted project grants, CSR grants, and foreign contributions (in separate FCRA books). Income applied to charitable objects under Section 2(15) of the IT Act is exempt; accumulation is limited to 15% per year with the balance applied within 5 years.

Patron Accounting provides end-to-end CA and CS services for 300+ NGOs across India, handling 12AB/80G registrations, FCRA returns, CSR-1 filings, and annual ITR-7 compliance.

Key Terms for NGO and Non-Profit Accounting:

Section 12AB: Registration for income tax exemption; valid 5 years (10 years for NGOs with receipts up to Rs 5 crore); Form 10A (new) or 10AB (renewal)
Section 80G(5): Donor can claim 50% deduction; requires 12AB; Form 10G application; Form 10BD donor statement by 31 May; Form 10BE certificates to donors
FCRA 2010: Foreign Contribution (Regulation) Act - MHA registration via Form FC-3A; SBI FCRA account at New Delhi; admin cap 20%; annual FC-4 by 31 December
Form CSR-1: MCA registration mandatory for NGOs receiving CSR funds from Section 135 companies; web-based process from July 2025; CA certification of Part 2
ITR-7: Annual return under Section 139(4A) for all 12AB-registered NGOs even if income is nil; due 31 October (audit cases)
Form 10B/10BB: Audit forms - 10B if gross receipts exceed Rs 5 crore or FC received or income applied outside India; 10BB for others

NGO Specialist 12AB, 80G, FCRA, CSR-1 Expert

Who Needs NGO and Non-Profit Accounting Services

The following entities require specialised NGO accounting and compliance support:

Public charitable trusts (state trust acts) - 12AB + 80G + ITR-7 + Form 10B/10BB + FCRA if receiving foreign grants
Societies (Societies Registration Act, 1860) - annual renewal + 12AB + 80G + CSR-1 + ITR-7
Section 8 companies (Companies Act, 2013) - full Companies Act compliance + 12AB + 80G + FCRA + CSR-1
Religious trusts and institutions - Section 11 exemption + Form 10BB + ITR-7
Educational and medical NGOs - Section 10(23C) or 12AB route; separate books for business income under Section 11(4A)
NGOs receiving CSR grants - Form CSR-1 mandatory with MCA; valid 12A and 80G required; 3-year track record
NGOs receiving foreign donations - FCRA Form FC-3A; single SBI account; annual FC-4; admin cap 20%

Entity Type	Legal Structure	Key Compliance
Public Charitable Trust	Indian Trusts Act or State Trust Act	12AB + 80G + ITR-7 + Form 10B/10BB
Society	Societies Registration Act, 1860	12AB + 80G + Registrar renewal + ITR-7
Section 8 Company	Companies Act, 2013	Companies Act + 12AB + 80G + CSR-1 + ITR-7
Religious Trust	Indian Trusts Act / state law	Section 11 exemption + Form 10BB + ITR-7
NGO with Foreign Funds	Any structure	FCRA FC-3A + FC-4 annual + 20% admin cap
NGO with CSR Grants	Must hold 12A and 80G	Form CSR-1 with MCA + 3-year track record

6 Core NGO Accounting and Compliance Services

Service	What We Do
12AB and 80G Registration and Renewal	Form 10A (new/provisional) or 10AB (renewal); 80G via Form 10G; Darpan ID; revalidation for pre-2021 registrations; 10-year validity for NGOs with receipts up to Rs 5 crore (Finance Act 2025)
FCRA Registration and Annual Compliance	Form FC-3A to MHA; SBI FCRA account setup; separate FC books; quarterly website disclosure; annual FC-4 by 31 Dec; admin monitoring (20% cap); FC-3C renewal; Form FC-6 for office bearer changes
CSR-1 Registration and Grant Management	Form CSR-1 on MCA portal (web-based from July 2025); CA certification Part 2; Unique CSR Registration Number; CSR project documentation for corporate donors
ITR-7 Filing and Annual Audit	ITR-7 under Section 139(4A); Form 10B/10BB audit; Form 10BD donor statement by 31 May; Form 10BE certificates; Section 11/12 application and accumulation (15% + Form 10)
Bookkeeping and Fund Accounting	Fund-wise accounting: corpus, restricted grants, CSR, foreign contributions (separate FCRA books); Income and Expenditure Account; Receipts and Payments; Balance Sheet per Rule 17AA
Payroll and TDS for NGOs	Section 192 TDS on salary; Section 194J on consultants (10% above Rs 50,000); Section 194C on contractors; Form 24Q/26Q quarterly; PF under EPF Act; ESI for 10+ employees

Our Process

Our 7-Step NGO Compliance Process

From entity structure audit and 12AB registration through to annual audit and renewal monitoring, our structured process ensures complete tax, FCRA, and CSR compliance for your NGO.

Step 1

Entity Structure and Registration Audit

We assess the NGO's legal structure (trust, society, or Section 8 company), verify charitable objects under Section 2(15) of the IT Act, and check existing 12AB and 80G status.

Structure assessed 12AB/80G status verified

Audit Complete01

Step 2

12AB and 80G Registration

We prepare and file Form 10A (new/provisional) or Form 10AB (renewal) on the IT e-filing portal. After 12AB approval, we apply for 80G(5) via Form 10G and register on NITI Aayog Darpan.

Form 10A/10AB filed 80G and Darpan obtained

12AB Approved02

Step 3

FCRA Registration Setup

For NGOs receiving foreign donations: Form FC-3A to MHA, SBI FCRA account at Sansad Marg New Delhi, separate FC books, and quarterly website disclosure of foreign funds.

FC-3A filed with MHA SBI FCRA account opened

FCRA Registered03

Step 4

CSR-1 Registration

Form CSR-1 on MCA portal (web-based from July 2025) with CA certification of Part 2. We obtain the Unique CSR Registration Number and prepare project documentation for corporate donors.

CSR-1 filed on MCA Registration number obtained

CSR-1 Approved04

Step 5

Annual Compliance Calendar Setup

Full calendar: ITR-7 by 31 Oct, Form 10B/10BB audit, Form 10BD by 31 May, FC-4 by 31 Dec, quarterly TDS returns, monthly TDS deposits, PF/ESI contributions. Fund-wise books per Rule 17AA.

All deadlines mapped Fund-wise books set up

Calendar Active05

Step 6

Audit and Annual Close

Form 10B/10BB income tax audit; ITR-7 filing; FC-4 FCRA return with CA certification; Form 10BD/10BE for donors; Section 8 company ROC returns (AOC-4 + MGT-7).

Audit completed All returns filed

Year Closed06

Step 7

Registration Renewal Monitoring

Track all expiry dates (12AB: 5 years, 80G: 5 years, FCRA: 5 years) and initiate renewal at least 6 months before expiry. Society renewals, Section 8 ROC filings, and Darpan annual updates.

Renewals tracked 6-month early alerts

Renewals Monitored07

Documents Required for NGO Accounting and Compliance

For 12AB and 80G Registration

PAN card of the NGO
Trust Deed (trusts), MOA and Rules (societies), or MOA/AOA with Section 8 licence (companies)
Registration certificate from relevant authority
List of trustees/directors/governing body with PAN and Aadhaar
Audited financials for last 3 years or since inception
Books of accounts per Rule 17AA of IT Rules
Activity and project reports for last 3 years
NITI Aayog Darpan ID (mandatory for 80G and government grants)

For FCRA Registration

All 12AB and 80G documents above
Evidence of own spending of at least Rs 15 lakh in chosen welfare field in last 3 years
Detailed audited statements for last 3 years per FCRA Amendment Rules 2025
Aadhaar of all office bearers (mandatory per FCRA Amendment 2020)
Bank details for proposed FCRA SBI designated account

For CSR-1 and Annual Compliance

Valid 12A and 80G certificates and 3-year track record for CSR-1
PAN, 12AB certificate, audited financials, Form 10B/10BB audit report for ITR-7
Complete donor register with PAN of all donors above Rs 10,000 for Form 10BD
Separate FC books, bank statements, CA certification for FCRA Form FC-4

4 Common Compliance Challenges for NGOs and How We Solve Them

Challenge	Impact	How Patron Accounting Solves It
12AB Registration Lapse	All donations become taxable if 12AB registration expires without renewal	Calendar tracking with Form 10AB filed at least 6 months before expiry; 10-year renewal eligibility tracking for NGOs under Rs 5 crore
FCRA Violations	Receiving foreign funds without registration is a criminal offence; bank accounts frozen; licence cancelled	FCRA health checks, admin expense ratio monitoring, FC-4 filed by 31 December, quarterly website disclosure
Form 10BD Non-Filing	Donors cannot claim 80G deduction; reduced future donations	Year-round donor register maintenance; Form 10BD filed by 31 May; Form 10BE issued to all qualifying donors
CSR-1 Eligibility Gaps	NGO cannot receive corporate CSR grants without valid registration	Pre-eligibility check for valid 12A/80G and 3-year track record; CA Part 2 certification; web-based filing from July 2025

NGO Accounting and Compliance - Fees and Pricing 2026

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 2,499 (Exl GST and Govt. Charges)
Basic Annual Compliance Package	Rs 3,500/month (ITR-7 + TDS returns + bookkeeping)
12AB Registration (New/Provisional)	Rs 8,000 onwards (Form 10A; complexity-based)
80G Registration	Rs 6,000 onwards (Form 10G; requires prior 12AB)
FCRA Registration	Rs 20,000 onwards (Form FC-3A + FC account setup)
FCRA Annual Return (Form FC-4)	Rs 5,000/year (CA certification + FCRA portal filing)
CSR-1 Registration	Rs 7,000 onwards (CA certification Part 2; MCA portal)
Form 10B / 10BB Audit	Rs 8,000 onwards (based on receipts and complexity)
Fund-Wise Bookkeeping and MIS	Rs 5,000/month (restricted and unrestricted fund separation)
Full NGO Compliance Package	Rs 15,000/month (12AB + FCRA + CSR-1 + ITR-7 + Audit + Payroll)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free NGO and Non-Profit Accounting consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

NGO Compliance Calendar - Key Deadlines

Stage	Estimated Timeline
6 months before expiry	12AB renewal (Form 10AB), 80G renewal, FCRA renewal (Form FC-3C)
7th of each month	TDS deposit (employee salary and vendor payments)
31st after quarter end	Quarterly TDS returns (Form 26Q / 24Q)
31 May	Form 10BD (Donor Disclosure Statement for 80G claims)
31 October	ITR-7 annual return (audit cases)
31 December	FCRA Form FC-4 annual return with CA certification
30 days from AGM	Section 8 company: AOC-4 financial statements with ROC
60 days from AGM	Section 8 company: Form MGT-7 annual return

Critical: A single missed 12AB renewal converts ALL donations to taxable income. Failure to file Form 10BD by 31 May means donors cannot claim 80G deductions. FCRA Form FC-4 late filing attracts 5% penalty on total foreign contributions received. Patron Accounting monitors all deadlines with advance alerts.

Key Benefits

Why Professional Accounting Matters for NGOs

Protect Section 11 Exemption

A missed 12AB renewal converts all donations to taxable income. Professional monitoring ensures the renewal window is never missed.

Avoid FCRA Violations

Receiving foreign donations without valid FCRA is a criminal offence. We monitor FCRA status, admin expense ratio, and file FC-4 by 31 December.

Maximise Donor Deductibility

Form 10BD filed on time and Form 10BE issued correctly ensures donors claim 80G deduction. Failure reduces donation inflows.

Unlock CSR Grants

Form CSR-1 is mandatory for corporate CSR funds. Correct documentation and CA certification increases eligibility and credibility.

Grant Agency Credibility

FCRA-compliant books, audited financials, and ITR-7 track record are minimum requirements for international grants and government schemes.

Scale Fund Programmes

Fund-wise bookkeeping (corpus, restricted, CSR, foreign) gives NGO boards full visibility into each programme's financial health.

Why Patron Accounting for NGOs

300+ NGOs, charitable trusts, and Section 8 companies served | 500+ 12AB and 80G registrations filed | 150+ FCRA returns annually | 12+ years NGO sector experience | 4.8/5 client rating

DIY vs Professional NGO Accounting - 7-Point Comparison

Aspect	Patron Accounting	DIY / In-House
12AB Renewal	Calendar tracking + Form 10AB filed 6 months early	Missed deadlines causing taxable year
FCRA Admin Cap	Monthly admin expense monitoring + FCRA books	Inadvertent breach of 20% limit
Form 10BD Filing	Filed by 31 May; Form 10BE issued on time	Often omitted; donors cannot claim 80G
CSR-1 Eligibility	Pre-eligibility check + CA Part 2 certification	Applied without valid 12A/80G; rejected
Fund Accounting	Separate fund registers per Rule 17AA	Mixed restricted and unrestricted funds
FCRA Books	Separate FCRA books; quarterly website disclosure	Combined with domestic books; non-compliant
Cost	Transparent retainer from Rs 3,500/month	Penalties + re-registration fees + taxable income

Related Services for NGOs and Non-Profits

Patron Accounting also provides these complementary services for NGOs:

NGO Registration - Trust, society, or Section 8 company registration with full documentation support
GST Registration - For NGOs with incidental commercial activities requiring GST compliance
Income Tax Return Filing - ITR-7 for trusts, societies, and Section 8 companies
TDS Return Filing - Quarterly Form 26Q and 24Q for NGO employees and vendors
Section 8 Company Registration - Company formation for NGOs under Companies Act 2013
12A and 80G Registration - Standalone 12AB and 80G registration service

Legal and Regulatory Framework for NGO Accounting in India

Law / Provision	Key Requirement	Accounting Impact
Sections 11 and 12, IT Act 1961	Income from property held for charitable purposes exempt if applied to objects; 15% accumulation permitted	Annual application of income; Form 10 accumulation filing
Section 12AB, IT Act 1961	Registration of charitable trusts; Form 10A (new) or 10AB (renewal); valid 5 years; 10 years for NGOs up to Rs 5 crore (Finance Act 2025)	Active 12AB = exemption; lapsed = fully taxable
Section 80G(5), IT Act 1961	Donor deductibility approval; Form 10G application; Form 10BD by 31 May; Form 10BE to donors	Annual donor database; 10BD/10BE compliance
FCRA 2010 + 2020 Amendment	Foreign contributions require MHA registration; SBI FCRA account; admin cap 20%; no sub-granting; Aadhaar mandatory	Separate FCRA books; FC-4 by 31 Dec; admin monitoring
Companies (CSR Policy) Rules, 2021	Form CSR-1 mandatory for receiving CSR funds from Section 135 companies; web-based from July 2025; CA Part 2	CSR-1 registration prerequisite for corporate grants
Rule 17AA, IT Rules 1962	Books NGO must maintain: cash book, ledger, journal, donation receipts, deed, governing body list	Mandatory bookkeeping for 12AB eligibility
Section 139(4A), IT Act 1961	Mandatory ITR-7 filing for charitable trusts even if income is nil	Annual ITR-7 with 12AB certificate and audit report
Income Tax (3rd Amendment) Rules 2023	Form 10B if gross receipts exceed Rs 5 crore or FC received; Form 10BB for others	Audit report format and applicability threshold

Frequently Asked Questions - NGO Accounting and Compliance

Get answers about 12AB and 80G registration, FCRA compliance, CSR-1, ITR-7, Form 10BD, Form 10B audit, and NGO compliance in India.

Quick Answers

What is NGO accounting?
NGO accounting is specialised financial management for charitable trusts, societies, and Section 8 companies covering income tax exemption under Sections 11 and 12 via Section 12AB, donor deductibility via 80G(5), FCRA compliance for foreign donations, CSR-1 for corporate grants, ITR-7 filing, Form 10BD donor statements, and Form 10B/10BB audit.

Is GST applicable on NGO activities?
Most charitable activities and donations are outside GST scope. However, services provided for consideration (training, publications, events for fee) may attract GST. Incidental commercial activities under Section 11(4A) require separate books and may create GST obligation.

How long does 12AB registration last?
Section 12AB is valid for 5 years. For NGOs with gross receipts not exceeding Rs 5 crore in each of two preceding years, Finance Act 2025 provides 10-year validity on renewals after 31 March 2025. Renewal via Form 10AB must be filed at least 6 months before expiry.

Compliance Deadlines - Do Not Miss These

Deadline	Requirement	Penalty for Default
6 months before expiry	12AB renewal (Form 10AB)	Lapsed 12AB: all donations become taxable
6 months before expiry	80G renewal and FCRA renewal (Form FC-3C)	Lapsed 80G: donors cannot claim deduction; lapsed FCRA: foreign funds illegal
7th of each month	TDS deposit	Interest under Section 201(1A), IT Act
31st after quarter end	Quarterly TDS returns (26Q / 24Q)	Rs 200 per day under Section 234E
31 May	Form 10BD (Donor Statement)	Donors cannot claim 80G; reduced future donations
31 October	ITR-7 annual return (audit cases)	Penalty up to Rs 10,000; 12AB/80G compliance risk
31 December	FCRA Form FC-4 with CA certification	5% penalty on total FC received; FCRA cancellation risk
30 days from AGM	Section 8 company: AOC-4 with ROC	Rs 100 per day per officer under Companies Act

Do not risk your NGO's compliance status - Call +91 945 945 6700 or WhatsApp us for a free compliance review.

Start Your NGO Compliance Today

NGO and non-profit accounting in India is governed by an overlapping network of laws: the Income Tax Act 1961 (Sections 11, 12, 12AB, 80G, 139), the FCRA 2010 (as amended 2020 and 2025), the Companies Act 2013 (for Section 8 companies), state trust and society acts, and the Companies (CSR Policy) Rules 2021. A single compliance gap can result in lost tax exemptions, donor deductibility failures, frozen bank accounts, and criminal prosecution.

Patron Accounting LLP provides ICAI-certified chartered accountants with deep NGO sector experience. From 12AB and 80G registration to FCRA annual returns, CSR-1 procurement, Form 10B audits, and ITR-7 filing, we manage your entire compliance lifecycle.

300+ NGOs served | 500+ 12AB/80G registrations | 150+ FCRA returns annually | Starting from Rs 3,500/month

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