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CA Services for Healthcare NGOs & Charitable Hospitals

Reviewed by CA & CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: 1 July 2026 Verify Credentials →

Right Exemption Route: We assess whether your charitable hospital should register under 12A/12AB (with 80G) or apply for Section 10(23C)(via) approval from the Principal Commissioner or Commissioner, then file the correct forms.

80G for Donor Deductions: With valid 80G approval your donors claim a deduction (generally 50 percent of the qualifying donation), improving fundraising from individuals and corporates alike.

FCRA for Foreign Medical Grants: Registration or prior permission under FCRA 2010, the designated SBI New Delhi Main Branch account, NGO Darpan setup and the annual FC-4 return handled end to end.

Audit & Annual Compliance: Form 10B or Form 10BB audit, ITR-7, Form 10BD donation statement, CSR-1 for corporate CSR funding, and every 12A/80G/FCRA renewal tracked on a compliance calendar.

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What Are CA Services for Healthcare NGOs and Charitable Hospitals?

📌 Quick Answers

How is a charitable hospital exempted from income tax? A hospital existing solely for philanthropic purposes and not for profit can claim exemption either under Sections 11-12 via 12A/12AB registration, or under Section 10(23C)(via) with approval from the Principal Commissioner or Commissioner. Small hospitals with aggregate annual receipts up to Rs 5 crore are exempt under Section 10(23C)(iiiae) without separate approval.
Do healthcare NGO donors get a tax deduction? Only if the NGO holds a valid 80G approval. With 80G, individual and corporate donors can claim a deduction (generally 50 percent of the qualifying donation) under Section 80G. The NGO must register via Form 10A/10AB and report donations so donors' deductions are validated.
Can a medical NGO accept foreign grants? Yes, but only after obtaining FCRA registration (or prior permission) under the Foreign Contribution (Regulation) Act, 2010. All foreign contributions must first be received in the designated FCRA account at SBI, New Delhi Main Branch before being moved to a utilisation account.
Which audit report does a charitable hospital file? Form 10B is required where total income before exemption exceeds Rs 5 crore, or where any foreign contribution is received or income is applied outside India. In all other cases the smaller institutions file Form 10BB. The audit must be conducted by a Chartered Accountant.

CA services for healthcare NGOs cover the full lifecycle of a charitable hospital or medical-relief organisation - from choosing and securing the correct tax-exempt structure, through obtaining 80G approval for donor deductions and FCRA registration for foreign medical grants, to the annual audit and compliance calendar that keeps every exemption alive. Patron Accounting LLP acts as a single Chartered Accountant and Company Secretary team across all of these workstreams, so a hospital board, trust or society is not stitching together separate advisers for registration, FCRA, audit and CSR.

The core decision for any charitable hospital is the income-tax exemption route. One path is registration under Section 12A / 12AB to claim exemption under Sections 11 and 12; the other is a hospital-specific approval under Section 10(23C)(via) granted by the Principal Commissioner or Commissioner. An entity cannot claim exemption under both regimes at the same time, and the right choice depends on receipts, funding mix and governance. We assess your profile, recommend a route and file the correct forms - and then keep you compliant year after year.

Content is reviewed quarterly for accuracy. Verify statutory positions at the Income Tax India e-Filing Portal, the FCRA Online Services portal, the Ministry of Corporate Affairs (MCA21) and the NGO Darpan portal.

How Charitable Hospital Tax Exemption Works in India

A charitable hospital or medical-relief NGO gets its income-tax exemption from one of two regimes. Understanding the difference is the foundation of every engagement, because the route you choose determines the forms you file, the audit report you furnish and the way you monitor your annual receipts.

Route 1 - Sections 11 and 12 via 12A/12AB registration: This is the flexible, standard route for most medical-relief NGOs and society or trust-run hospitals. The organisation registers under Section 12A / 12AB and, in parallel, obtains 80G approval so that its donors can claim deductions. This route pairs naturally with FCRA and CSR eligibility and is the most common structure Patron sets up.

Route 2 - Section 10(23C)(via) approval: Section 10(23C)(via) exempts the income of any hospital or medical institution for the reception and treatment of persons suffering from illness, mental defectiveness, convalescence or requiring medical attention or rehabilitation, that exists solely for philanthropic purposes and not for profit, subject to approval by the Principal Commissioner or Commissioner of Income Tax. It is a hospital-specific approval often preferred by larger institutions. An organisation cannot claim exemption under both regimes at the same time.

The Rs 5 crore small-hospital exemption - Section 10(23C)(iiiae): A philanthropic, not-for-profit hospital whose aggregate annual receipts do not exceed Rs 5 crore is exempt under Section 10(23C)(iiiae) without needing separate approval. The Finance Act, 2021 raised this limit from Rs 1 crore to Rs 5 crore with effect from Assessment Year 2022-23. Importantly, where the same person also runs an educational institution under Section 10(23C)(iiiad), the Rs 5 crore ceiling applies to the aggregate of receipts from both, not to each separately - so we monitor receipts each year to catch a crossing early.

Government-financed hospitals - Section 10(23C)(iiiac): A hospital or medical institution that exists solely for philanthropic purposes and not for profit and is wholly or substantially financed by the Government (more than 50 percent of gross receipts by way of government grants) is exempt under Section 10(23C)(iiiac).

Donor deductions under Section 80G: Section 80G approval enables donors to claim a deduction (commonly 50 percent of the qualifying donation) on contributions to the NGO; the NGO applies via Form 10A (provisional) and Form 10AB (regular). Under the regime effective from 1 April 2021 (Finance Act, 2020), 12A and 80G registrations are no longer perpetual - NGOs obtain provisional registration and must apply for regular registration in Form 10AB, with renewal required every five years.

Key Terms for Healthcare NGO Compliance:

Section 10(23C)(via): Hospital-specific income-tax exemption for a philanthropic, not-for-profit hospital, approved by the Principal Commissioner or Commissioner.
Section 10(23C)(iiiae): Automatic exemption (no separate approval) for a not-for-profit hospital with aggregate annual receipts up to Rs 5 crore.
Section 10(23C)(iiiac): Exemption for a philanthropic hospital wholly or substantially (over 50 percent) financed by the Government.
Section 12A / 12AB: Registration route to claim exemption under Sections 11 and 12; alternative to Section 10(23C).
Section 80G: Approval that lets donors claim a deduction (generally 50 percent) on donations; applied via Form 10A / Form 10AB.
Form 10B / Form 10BB: The two audit report forms for charitable trusts and institutions (new forms effective AY 2023-24).
FCRA 2010: The Foreign Contribution (Regulation) Act governing receipt of foreign medical grants; SBI New Delhi Main Branch designated account required.
Form CSR-1 / Schedule VII: MCA registration enabling an NGO to act as a CSR implementing agency; promoting health care is an eligible Schedule VII activity.

Exemption Routes 12A/80G or 10(23C)(via)

Which Healthcare Organisations Need These Services

Patron's healthcare-NGO engagement is calibrated to organisations delivering medical relief in different forms. Each brings a distinct receipts profile, funding mix and governance structure that shapes the exemption route and compliance plan.

Charitable hospitals (trust or society run): Not-for-profit hospitals seeking a durable tax-exempt structure, either 12A/12AB with 80G or Section 10(23C)(via) approval, and the correct Form 10B or 10BB audit each year.
Small and rural not-for-profit hospitals under Rs 5 crore: Institutions relying on the Section 10(23C)(iiiae) exemption who need annual receipts monitored so a crossing of the Rs 5 crore threshold does not silently break their exemption.
Medical-relief NGOs running camps and programmes: Organisations conducting health camps, screenings and preventive-care drives that receive donations and, increasingly, corporate CSR funding.
NGOs receiving foreign medical grants: Bodies that need FCRA registration or project-specific prior permission, the SBI New Delhi Main Branch designated account and NGO Darpan registration before a single rupee of foreign contribution arrives.
Medical research institutions: Registered research bodies structuring tax registration alongside their scientific objects.
Government-financed hospitals: Philanthropic hospitals substantially financed by government grants relying on Section 10(23C)(iiiac).
CSR implementing agencies in health: Healthcare NGOs registering on Form CSR-1 to receive corporate CSR funds under Schedule VII of the Companies Act, 2013.

How we scope your engagement: We start from your receipts, funding mix (domestic donations, foreign grants, government funding, CSR), and governance form (trust, society, Section 8 company) rather than a fixed template - because those factors, not size alone, decide the right exemption route and the audit form that applies.

Patron Service Coverage for Healthcare NGOs

Service	What We Do
Exemption Route Assessment	Assess receipts, funding mix and governance to recommend 12A/12AB (with 80G) or Section 10(23C)(via) approval; confirm eligibility for the Section 10(23C)(iiiae) small-hospital exemption where receipts are under Rs 5 crore.
12A / 12AB Registration	Provisional registration via Form 10A and regular registration via Form 10AB to claim exemption under Sections 11 and 12; renewal tracked on the five-year cycle.
80G Registration	Form 10A / Form 10AB filing so donors can claim deduction; set up of the Form 10BD donation statement and Form 10BE donation certificate process.
Section 10(23C)(via) Approval	Preparation and filing of the hospital-specific approval application to the Principal Commissioner or Commissioner, with supporting philanthropic-purpose documentation.
FCRA Registration & Prior Permission	FCRA 2010 registration or project-specific prior permission (Form FC-3B), designated SBI New Delhi Main Branch account setup, NGO Darpan registration, and the annual FC-4 return.
Form 10B / Form 10BB Audit	Chartered Accountant audit and the correct audit report - Form 10B where total income before exemption exceeds Rs 5 crore, or where foreign contribution is received or income is applied outside India; Form 10BB otherwise.
CSR-1 Registration	Form CSR-1 registration with the MCA so the NGO can act as a CSR implementing agency for corporate health-care spend under Schedule VII of the Companies Act, 2013.
NGO Accounting & ITR-7	Books of account with separate FCRA accounts, application of at least 85 percent of income to charitable objects, and annual ITR-7 filing.
Compliance Calendar & Renewals	A single calendar covering ITR-7, Form 10B/10BB, Form 10BD, the FC-4 return by 31 December, and 12A/80G/FCRA renewals on their five-year cycles.

Our Process

How Patron Sets Up and Runs Your Healthcare NGO Compliance

A structured workflow from exemption-route diagnosis through registration, FCRA, audit and the ongoing annual compliance calendar.

Step 1

Diagnosis and Exemption Route Decision

We review your governance form, receipts and funding mix (donations, foreign grants, government funding, CSR), then recommend 12A/12AB with 80G or Section 10(23C)(via) approval, and confirm whether the Section 10(23C)(iiiae) Rs 5 crore route applies.

Route decided Receipts assessed

Route Diagnosed01

Step 2

12A/12AB and 80G Registration

Form 10A for provisional registration and Form 10AB for regular registration, filed for both 12A/12AB (exemption) and 80G (donor deduction). We also set up the Form 10BD donation statement and Form 10BE certificate process.

Forms filed Donor process live

Registered02

Step 3

Section 10(23C)(via) Approval (Where Chosen)

Where the hospital-specific route fits better, we prepare and file the Section 10(23C)(via) approval application to the Principal Commissioner or Commissioner, with philanthropic-purpose and not-for-profit documentation.

Application filed Queries handled

Approval Sought03

Step 4

FCRA Registration or Prior Permission

For foreign medical grants, we set up the designated SBI New Delhi Main Branch account, complete NGO Darpan registration, and file FCRA registration (three years of existence and prescribed core spending) or project-specific prior permission (Form FC-3B) for newer NGOs.

SBI account set Darpan done

FCRA Live04

Step 5

CSR-1 Registration

Where the NGO wants to receive corporate CSR funds as an implementing agency, we complete Form CSR-1 registration with the MCA (health care being an eligible Schedule VII activity) and set up the reporting a company needs for its CSR spend.

CSR-1 filed Reporting set

CSR Ready05

Step 6

Annual Audit - Form 10B or 10BB

Our Chartered Accountants conduct the statutory audit and furnish the correct report - Form 10B where total income before exemption exceeds Rs 5 crore, or where any foreign contribution is received or income is applied outside India; Form 10BB in all other cases.

Audit complete Correct form filed

Audited06

Step 7

Ongoing Compliance and Renewals

We run your annual calendar - ITR-7, Form 10BD donation statement, the FC-4 FCRA return by 31 December, the 85 percent application-of-income test, and every 12A/80G and FCRA renewal on its five-year cycle, filed well before expiry.

Calendar run Renewals tracked

Compliant07

Document Checklist for Healthcare NGO Compliance

For an efficient engagement, the following documents should be ready. Patron coordinates fresh issuance where existing documents are inadequate.

Trust deed, society registration certificate, or Section 8 company incorporation documents
PAN of the organisation
Registration certificate under the applicable state or central Act
Details of trustees, office bearers or directors with PAN and Aadhaar
Memorandum and rules or the governing instrument setting out philanthropic and medical-relief objects
Existing 12A / 12AB, 80G or Section 10(23C) approval orders (if any), for renewal or transition
Financial statements and audited accounts for the last three years (where available)
Statement of aggregate annual receipts (to test the Section 10(23C)(iiiae) Rs 5 crore threshold)
Details of any educational institution run by the same person (for combined-receipts testing)
Bank statements, including the designated SBI New Delhi Main Branch FCRA account details where applicable
NGO Darpan registration details
Details of foreign donors and grants (for FCRA registration or prior permission)
Government grant details (for Section 10(23C)(iiiac), where substantially government financed)
Donation records for Form 10BD donation statement preparation
Details of the health-care activities, camps or programmes conducted

Verify portal status at the Income Tax India e-Filing Portal, the FCRA Online Services portal, the Ministry of Corporate Affairs (MCA21), the NGO Darpan portal, and auditing standards at the Institute of Chartered Accountants of India.

Common Healthcare NGO Mistakes Patron Helps You Avoid

Challenge	Impact	How Patron Accounting Solves It
Crossing the Rs 5 crore receipts threshold unnoticed	A hospital relying on Section 10(23C)(iiiae) that crosses Rs 5 crore aggregate receipts (or the combined ceiling where an educational institution is also run) loses the automatic exemption and can face tax on its surplus.	We monitor aggregate receipts every year, flag an approaching crossing early, and obtain formal approval or 12AB registration in time to preserve the exemption.
Filing the wrong audit form (10B vs 10BB)	Even Re 1 of foreign contribution, or any application of income outside India, triggers Form 10B irrespective of the Rs 5 crore threshold. Using Form 10BB in that situation is a defective filing.	We test each of the three triggers - income over Rs 5 crore, any foreign contribution, income applied outside India - and furnish the correct form, whether the entity is under Section 12A or approved under Section 10(23C).
Receiving foreign grants before FCRA is in place	Foreign contribution received without FCRA registration or prior permission, or into the wrong account, is a serious violation that can freeze foreign funds.	We ensure the designated SBI New Delhi Main Branch account and NGO Darpan registration are ready, and file FCRA registration or Form FC-3B prior permission before any foreign money is accepted.
Claiming both 10(23C) and 12A regimes	An entity cannot claim exemption under both Section 10(23C) and Sections 11-12 (via 12A) at the same time; doing so invites disallowance.	We select one regime based on receipts, funding mix and governance, document the reasoning, and file only the correct set of forms.
Missing renewals of 12A/80G/FCRA	Since the 2021 regime, 12A and 80G are no longer permanent and, with FCRA, must be renewed every five years. A lapse can suspend exemption and donor deductions and freeze foreign funds.	We track every five-year cycle and file Form 10AB and FCRA renewals well before expiry, so exemptions and donor deductions never lapse.
Weak donor-deduction documentation	Without the Form 10BD donation statement and Form 10BE certificate, donors' 80G deductions can be denied on scrutiny, damaging fundraising credibility.	We set up the Form 10BD and Form 10BE process so every donor's deduction is validated and stands up to assessment.

Patron Fees for Healthcare NGO Services

Service	Indicative Fee
Free Scoping Call	Free - a discussion of your governance, receipts and funding mix, with a recommendation on exemption route and next steps
Healthcare NGO Registration & Compliance Engagement	Starting from INR 25000 (Exl. GST & Govt. Charges) — final quote on assessment
12A / 12AB Registration	Scoped on assessment; depends on whether provisional or regular registration and the documentation required
80G Registration	Scoped on assessment; includes the Form 10BD / 10BE donor-deduction process setup
FCRA Registration or Prior Permission	Scoped on assessment; varies with registration versus Form FC-3B prior permission and the state of NGO Darpan and the SBI account
Form 10B / 10BB Audit and ITR-7	Scoped on assessment; depends on receipts, volume of transactions and whether foreign contribution is involved

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.

Government charges - such as any statutory fees and stamp duty - are separate from professional fees and are billed at actuals. The exact professional fee depends on the exemption route, the registrations required and the complexity of your funding mix. Contact us for a detailed quote.

Get a free healthcare NGO consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Indicative Timeline for Healthcare NGO Registrations

Stage	Indicative Timeline
Diagnosis and route decision	Initial assessment of governance, receipts and funding mix, and selection of the exemption route
12A / 12AB and 80G registration	Provisional registration via Form 10A, followed by regular registration via Form 10AB within the timeline the law allows
Section 10(23C)(via) approval	Application to the Principal Commissioner or Commissioner, followed by the department's processing and any clarifications
FCRA registration or prior permission	SBI New Delhi Main Branch account and NGO Darpan first; then FCRA registration (subject to the three-year existence and core-spending conditions) or Form FC-3B prior permission for a specific project
CSR-1 registration	Form CSR-1 filing with the MCA once 12A and 80G are in place
Annual audit and returns	Form 10B or 10BB audit and ITR-7 by the applicable due dates; Form 10BD donation statement; FC-4 return by 31 December where FCRA applies
Renewals	12A/80G (Form 10AB) and FCRA renewals on their five-year cycles, filed well before expiry

Note on timelines: Statutory processing times are set by the Income Tax Department, FCRA authorities and the MCA and are outside any adviser's control. Our role is to file complete, correct applications the first time and to respond promptly to any clarification, so approvals are not delayed by avoidable queries. Exact timelines are confirmed on assessment.

Key Benefits

Why Patron for Healthcare NGO Services

Both Exemption Routes Handled

We work fluently across 12A/12AB with 80G and Section 10(23C)(via) approval, and we know when the Section 10(23C)(iiiae) Rs 5 crore route applies - so you get the route that genuinely fits your hospital, not a one-size template.

FCRA Done Correctly

Designated SBI New Delhi Main Branch account, NGO Darpan registration, FCRA registration or Form FC-3B prior permission, and the FC-4 annual return - with the 20 percent administrative-expense cap and the ban on sub-granting kept front of mind.

The Right Audit Form Every Year

We test the Form 10B triggers - income over Rs 5 crore, any foreign contribution, income applied outside India - and file Form 10B or Form 10BB accordingly, under the new forms effective from AY 2023-24.

Stronger Fundraising with 80G and CSR

Valid 80G approval plus a clean Form 10BD / 10BE process gives donors confidence, and Form CSR-1 registration opens corporate CSR funding under Schedule VII of the Companies Act, 2013 for health-care programmes.

One Compliance Calendar

ITR-7, Form 10B/10BB, Form 10BD, the FC-4 return by 31 December, the 85 percent application-of-income test, and every 12A/80G/FCRA five-year renewal - all tracked in a single calendar run by one team.

CA & CS Team, 15+ Years

A single Chartered Accountant and Company Secretary team with 15+ years across income-tax exemption, FCRA, MCA and audit, so registration, foreign funding, CSR and compliance are coordinated under one roof.

Section 10(23C)(via) vs 12A/12AB Decision Matrix

Dimension	12A / 12AB (with 80G)	Section 10(23C)(via)
Nature of route	Registration to claim exemption under Sections 11 and 12	Hospital-specific approval by the Principal Commissioner or Commissioner
Best suited for	Most medical-relief NGOs and society/trust-run hospitals	Institutions existing solely for philanthropic purposes and not for profit; often larger hospitals
Donor deductions	Paired with 80G so donors claim deduction (generally 50 percent)	80G can be held alongside for donor deductions
Registration forms	Form 10A (provisional) and Form 10AB (regular)	Approval application to the Principal Commissioner or Commissioner
Small-hospital relief	Applies where structured under 12A	Section 10(23C)(iiiae) exempts receipts up to Rs 5 crore without separate approval
Can both be claimed together?	No - an entity cannot claim exemption under both regimes at the same time
Renewal	Every five years (Form 10AB) under the post-2021 regime	Subject to the approval terms and periodic renewal
Audit form	Form 10B or 10BB, depending on income, foreign contribution and income applied outside India - applies under either regime

Related Patron NGO & Non-Profit Services

Healthcare NGO compliance draws on several of Patron's non-profit services. These are live pages you can explore for the individual registrations that make up a full engagement:

12A Registration - registration under Section 12A / 12AB to claim income-tax exemption under Sections 11 and 12.
80G Registration - approval so your donors can claim deductions, with the Form 10BD / 10BE process.
FCRA Registration - registration or prior permission to receive foreign medical grants under FCRA 2010.
NGO & Non-Profit Accounting Services - books of account, ITR-7 and the ongoing compliance calendar.

Verify statutory positions at the Income Tax India e-Filing Portal, the FCRA Online Services portal, the Ministry of Corporate Affairs (MCA21), the NGO Darpan portal, and the Institute of Chartered Accountants of India.

Legal and Compliance Framework (India)

Governing statutes and provisions relevant to healthcare NGOs and charitable hospitals:

Section 10(23C)(via), Income-tax Act, 1961: Exemption for a hospital or medical institution existing solely for philanthropic purposes and not for profit, subject to approval by the Principal Commissioner or Commissioner.
Section 10(23C)(iiiae): Exemption without separate approval where aggregate annual receipts do not exceed Rs 5 crore (raised from Rs 1 crore by the Finance Act, 2021 with effect from AY 2022-23).
Section 10(23C)(iiiac): Exemption for a philanthropic hospital wholly or substantially (over 50 percent) financed by the Government.
Sections 11, 12 and 12A / 12AB: The registration route to income-tax exemption; an entity cannot claim this and Section 10(23C) at the same time.
Section 80G: Donor deductions (commonly 50 percent of the qualifying donation), applied via Form 10A / Form 10AB, with Form 10BD and Form 10BE for donation reporting.
Finance Act, 2020 (effective 1 April 2021): 12A and 80G registrations are no longer perpetual; provisional registration then Form 10AB, renewed every five years.
Income-tax (3rd Amendment) Rules, 2023: New Form 10B and Form 10BB audit reports effective from AY 2023-24; Form 10B where income exceeds Rs 5 crore, or foreign contribution is received, or income is applied outside India, else Form 10BB.
Foreign Contribution (Regulation) Act, 2010: Registration or prior permission for foreign contribution; designated SBI New Delhi Main Branch account (IFSC SBIN0000691); FC-4 annual return by 31 December; sub-granting prohibited; administrative expenses capped at 20 percent.
Schedule VII, Companies Act, 2013 and Form CSR-1: Promoting health care, including preventive health care, is an eligible CSR activity; an implementing agency must register on Form CSR-1 and generally hold 12A and 80G.

This page is general information, not legal or tax advice. Statutory positions are summarised from the research provided and should be confirmed for your specific facts on assessment.

Frequently Asked Questions

Answers to the most common questions from charitable hospitals and medical-relief NGOs evaluating tax exemption, 80G, FCRA, CSR and annual compliance.

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Should our charitable hospital register under 12A/80G or apply for 10(23C)(via) approval?

Both routes deliver income-tax exemption, but they suit different profiles. The 12A/12AB route (with 80G for donor deductions) is flexible and standard for most medical-relief NGOs and society/trust-run hospitals. Section 10(23C)(via) is a hospital-specific approval granted by the Principal Commissioner or Commissioner for institutions existing solely for philanthropic purposes and not for profit; it is often preferred by larger hospitals. An organisation cannot claim both regimes simultaneously, so we assess your receipts, funding mix and governance before recommending one and file the correct forms.

Our hospital's receipts are under Rs 5 crore, do we still need approval?

A hospital existing solely for philanthropic purposes and not for profit whose aggregate annual receipts do not exceed Rs 5 crore is exempt under Section 10(23C)(iiiae) without a separate approval. However, if you also run an educational institution under Section 10(23C)(iiiad), the Rs 5 crore limit is applied on the combined aggregate. We monitor receipts each year because crossing the threshold means you must obtain formal approval or 12AB registration to keep the exemption.

What does 80G approval mean for donations to our medical NGO?

80G approval lets your donors claim an income-tax deduction (generally 50 percent of the eligible donation, subject to the qualifying limit). This materially improves fundraising, including from corporates. We file Form 10A for provisional and Form 10AB for regular approval, and set up the mandatory donation statement (Form 10BD) and donation certificate (Form 10BE) process so every donor's deduction stands up to scrutiny.

We received a foreign grant for a medical camp, are we compliant?

Foreign contribution can only be received after FCRA registration or project-specific prior permission. Registration requires at least three years of existence and prescribed spending on your core objects, an SBI New Delhi Main Branch designated account, and NGO Darpan registration; prior permission (Form FC-3B) covers a specific project from a specific donor for newer NGOs. Sub-granting of foreign funds is prohibited and administrative expenses are capped at 20 percent. We handle registration, the annual FC-4 return and reconciliation.

Can we fund our hospital or health programme through corporate CSR?

Yes. Promoting health care, including preventive health care, is an eligible activity under Schedule VII of the Companies Act, 2013, so healthcare NGOs are a natural CSR partner. To receive CSR funds as an implementing agency, your NGO must be registered on Form CSR-1 with the MCA and hold 12A and 80G. We complete the CSR-1 registration and set up the reporting a company needs for its CSR spend.

What ongoing compliance does a healthcare NGO have to maintain each year?

Ongoing obligations include maintaining books and separate FCRA accounts, filing the income-tax return (ITR-7), obtaining the audit report in Form 10B or 10BB by the due date, filing the donation statement in Form 10BD, filing the FCRA annual return (FC-4) by 31 December where applicable, applying at least 85 percent of income to charitable objects, and renewing 12A/80G and FCRA on their five-year cycles. We run this compliance calendar for you.

How does registration renewal work and what happens if we miss it?

Under the regime effective from 2021, 12A and 80G approvals are no longer permanent. New NGOs receive provisional registration and must apply for regular registration in Form 10AB, and existing approvals must be renewed every five years. FCRA registration is also valid for five years and must be renewed. Lapsed registration can suspend exemption and donor deductions and, for FCRA, freeze foreign funds, so we track and file every renewal well before expiry.

Talk to Patron's Healthcare NGO Team Today

Setting up and running a tax-exempt charitable hospital or medical-relief NGO is a specialised job. The exemption route - 12A/12AB with 80G, or Section 10(23C)(via) approval, or the Section 10(23C)(iiiae) small-hospital relief - shapes everything from the forms you file to the audit report you furnish, and an entity cannot claim two regimes at once.

Layered on top are 80G donor deductions with Form 10BD and 10BE, FCRA registration for foreign medical grants through the designated SBI New Delhi Main Branch account, Form CSR-1 for corporate CSR funding, and the Form 10B or 10BB audit with ITR-7 each year. Patron Accounting LLP handles all of it as one CA and CS team.

Book a free scoping call and we will assess your governance, receipts and funding mix and recommend the right route - with an indicative engagement starting from INR 25000 (Exl. GST & Govt. Charges), final quote on assessment.

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Patron NGO & Non-Profit Services

The registrations and services that make up a full healthcare NGO engagement.

Core NGO Registrations & Compliance

Live Patron pages for each workstream

Patron Offices Serving Healthcare NGOs

4-office network with pan-India remote engagement

Content Created: 1 July 2026 | Last Updated: 1 July 2026 | Next Review: 1 October 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed quarterly and immediately on amendments to the Income-tax Act exemption provisions (Sections 10(23C) and 12A/80G), the FCRA framework, the Form 10B/10BB audit rules, and CSR provisions affecting healthcare NGOs.