Income Tax Act 2025 · FCRA 2010 · Updated June 2026

12A / RNPO Registration for Charitable Trusts, Religious Societies & NGOs

A complete guide to registration, annual compliance, forms to be filed, foreign donations and FCRA requirements under the new Income Tax Act 2025 — effective 1 April 2026.

Source: incometaxindia.gov.in & MHA / FCRA

Section 332–355 | Chapter XVII-B | FCRA 2010

Trusts · Societies · Section 8 Companies · NGOs

🏛️ Charitable Trust / NGO — RNPO Registration

📋 Annual Compliance Forms — IT & FCRA

🌐 FCRA — SBI New Delhi Mandatory Route

Overview

What Has Changed? The New RNPO Framework Under Income Tax Act 2025

Charitable trusts, religious societies, NGOs, educational institutions, and hospitals have long enjoyed income tax exemptions in India. Under the old Income Tax Act, 1961, provisions were scattered across Sections 11, 12, 12A, 12AA, 12AB, 13, 10(23C), 80G — creating a labyrinth of cross-references.

The Income Tax Act 2025, effective from 1 April 2026, consolidates all provisions into a single Chapter XVII-B (Sections 332 to 355). These entities are collectively renamed “Registered Non-Profit Organisations” (RNPO).

📋 Old vs New — Section Mapping

Section 12A / 12AA / 12AB (old) → Section 332 of IT Act 2025 (RNPO Registration)
Section 80G (old) → Section 354 (Donor Deduction Approval)
Forms 10B & 10BB (old) → Form 112 (Unified Audit Report from April 2026)
Form 10BD (old) → Form 113 (Donation Statement)
Form 10BE (old) → Form 114 (Donor Certificate)
Existing valid 12A/12AB/10(23C) registrations automatically continue as RNPO — no fresh application needed until expiry.

Part 1 — Who Needs Registration

Who Must Register as an RNPO?

Without registration under Section 332, all income — including donations — is fully taxable as ordinary income. Registration is the gateway to all exemptions.

Entities That Must Register

Public charitable trusts
Religious trusts & societies (temples, mosques, churches, gurudwaras)
NGOs registered under Societies Registration Act
Section 8 Companies (non-profit companies)
Educational institutions & hospitals (not-for-profit)
Funds for relief of poor / environment / arts / sports

Entities NOT Eligible

Private or family trusts
Trusts with revocable trust deeds
Entities set up for private benefit
For-profit companies and commercial entities
Entities benefiting only a specific private group

Part 2 — Registration Process

How to Register Under Section 332 (Replaces 12A / 12AB)

Registration Type	When Applicable	Validity	Form
Provisional Registration	New entity — activities not yet commenced	3 Years	Form 104 (old 10A)
Regular Registration (Standard)	Operational 3+ years; after provisional period	5 Years	Form 105 (old 10AB)
Regular Registration (Small Trust)	Gross receipts ≤ &20B9;5 crore in each of 2 preceding years	10 Years	Form 105 (old 10AB)
Transition from old 12A/12AB	Existing registrations auto-continue as RNPO until expiry	Until Expiry	No fresh application

⚠️ Renewal Timing — Critical

Apply for renewal at least 6 months before expiry using Form 105. Late or missed renewal applications result in lapse of registration, making the entity’s income fully taxable. If income crosses ₹5 crore in either of the two preceding years, the 10-year extended validity is lost.

Documents Required for Section 332 Registration

Trust Deed / Memorandum of Association

Registered with Sub-Registrar or Registrar of Societies. Must state charitable/religious objects explicitly. No revocability clause permitted.

Registration Certificate

Under Societies Registration Act, Indian Trusts Act, or Companies Act 2013 (Section 8 companies).

PAN of the Trust / Society

Mandatory. All IT filings are linked to this PAN.

Financial Statements (existing entities)

Audited accounts for last 3 years demonstrating genuine charitable activities and application of income.

List of Trustees / Office Bearers

Names, PAN, Aadhaar, and addresses of all trustees or managing committee members.

Activity Report

Details of charitable/religious activities, beneficiaries served, and geographical area of operation.

Part 3 — Tax Exemption Rules

How Tax Exemption Works — The 85% Application Rule

Registration as an RNPO does not make all income automatically tax-free. The exemption is conditional on satisfying the 85% application rule under Section 336.

✓ The Core Rule — Section 336

At least 85% of regular income must be applied for charitable or religious purposes during the tax year. The remaining 15% is always exempt. If 85% cannot be applied in the year, the shortfall can be accumulated for up to 5 years under Section 342 — but Form 109 must be filed to exercise this option before the end of the year.

Type of Income	Treatment Under IT Act 2025	Section
Corpus donations (voluntary contributions)	Exempt — not treated as regular income	Section 337
Regular income (rent, interest, programme fees)	Exempt if 85% applied for charitable purposes	Section 336
Anonymous donations > ₹1 lakh or 5% of total donations	Taxed at 30%	Section 338
Income applied outside India	Not treated as applied for charitable purposes	Section 341
Commercial activity income (incidental)	Permitted up to 20% of total receipts; separate books required	Section 346

“A registered RNPO pays zero tax on regular income if it applies 85% or more for charitable or religious purposes — the remaining 15% is always exempt. Miss the 85% threshold and the shortfall becomes fully taxable.”

Part 4 — Section 354 / 80G Donor Deduction

Section 354 Approval — Making Donations Tax-Deductible for Donors

RNPO registration under Section 332 benefits the organisation only. For donors to also get a tax deduction on their donations (the old Section 80G benefit), the organisation must separately apply for Section 354 approval.

💡 Two-Stage Process — Section 332 + Section 354

Stage 1 — Section 332: Register as RNPO → organisation’s own income is exempt from tax.
Stage 2 — Section 354: Apply for donor deduction approval → donors claim deduction under Section 133.
Both applications can be filed simultaneously. Section 354 renewal is every 5 years — independently of Section 332 renewal (no 10-year extension available for donor deduction approval).

Process	New Form	Old Form	Purpose
Apply for Section 332 / Section 354	Form 104 / 105	Form 10A / 10AB	Registration / approval application
Order of provisional registration	Form 106	Form 10AC	Provisional registration order
Grant of regular registration	Form 107	Form 10AD	Regular registration / approval order
Donation statement (filed by RNPO)	Form 113	Form 10BD	Statement of donations received in the year
Donor certificate (issued to donor)	Form 114	Form 10BE	Certificate of donation for donor’s tax return

Part 5 — Annual Compliance

Annual Compliance Requirements for Every RNPO

Every registered RNPO must meet annual compliance obligations. Non-compliance under Section 353 strips the RNPO of its exemption for that year — all regular income becomes fully taxable.

Annual Compliance Calendar

30 Sep

Form 112 — CA Audit Report Audit of accounts by a Chartered Accountant. Replaces old Forms 10B and 10BB. Single unified smart form, pre-filled with ITR data. Applicable from Tax Year 2026-27 onwards.

31 Oct

ITR-7 — Income Tax Return All RNPOs must file ITR-7 even if income is entirely exempt. Filing must be done after the audit (Form 112) is complete and submitted.

31 May

Form 113 — Donation Statement For Section 354 / 80G approved organisations. Disclose all donations received during the financial year. Filed by 31 May of the following year.

Ongoing

Form 114 — Donor Certificates Issue Form 114 to every donor after Form 113 is filed. Generated from TRACES / IT portal. Donor uses this to claim their Section 133 deduction.

Form 109
Before Year End

Form 109 — Accumulation of Income (if applicable) If 85% cannot be applied in the current year, file Form 109 before the year end to accumulate income for future application under Section 342 (max 5 years).

6 Months
Before Expiry

Form 105 — Renewal of Section 332 Registration Apply for renewal of RNPO registration at least 6 months before expiry. Late applications are rejected, rendering the entity unregistered.

31 Dec

FC-4 — FCRA Annual Return (if foreign contributions received) File by 31 December every year at fcraonline.nic.in. NIL return must also be filed even if no foreign contribution was received during the year.

⚠️ New — Form 112 Replaces Forms 10B & 10BB (From 1 April 2026)

CBDT has introduced Form 112 as a single unified audit form for all registered NPOs, replacing Forms 10B and 10BB, effective from Tax Year 2026-27. It is pre-filled with ITR data, dynamically adapts based on “small” or “large” RNPO classification, and includes built-in system validations to reduce errors across over 2.25 lakh annual filings.

Books of Accounts & Audit

Audit Threshold

All RNPOs

Audit mandatory for all registered RNPOs regardless of income size — no minimum threshold

Books Required

Double Entry

Cash book, ledger, journal, receipts & payments account, income & expenditure A/c, balance sheet

Separate Books

Required

Separate books for corpus funds, earmarked grants, FCRA funds, and commercial activities

Retention Period

6 Years

Books of accounts must be retained for at least 6 years from the end of the relevant tax year

Part 6 — Foreign Donations & FCRA

Receiving Foreign Donations — FCRA Registration is Mandatory

No Indian NGO, trust, or institution can legally receive money, grants, or donations from any foreign source without first obtaining FCRA registration from the Ministry of Home Affairs (MHA). There are no exceptions regardless of the amount or purpose.

❌ Critical Warning — NRI Donations Are Also “Foreign Contributions”

A common and costly misconception: if an NRI donates to your NGO — even by transferring Indian rupees from an NRO account to your Indian bank account — it is legally treated as a “foreign contribution” under FCRA. Without FCRA registration, receiving NRI donations is also illegal and punishable. As of 2026, only ~16,000 NGOs hold active FCRA registration in India, down from over 40,000 before the 2020 amendment tightened compliance.

Two Routes to Accept Foreign Contributions

Route	Who Can Apply	Form	Fee	Timeline
FCRA Registration (Permanent)	NGOs operational for 3+ years with proven activity record	Form FC-3A at fcraonline.nic.in	₹10,000	90–120 working days
Prior Permission (Per-project)	New NGOs or those needing a specific one-time foreign grant	Form FC-3B at fcraonline.nic.in	₹5,000	90–120 working days

FCRA Registration — Step-by-Step

Be Registered for at Least 3 Years

Organisation must have been active for a minimum of 3 years with documented charitable work in the chosen field (cultural, social, economic, educational, or religious).

Open Dedicated SBI FCRA Account — New Delhi Main Branch

All foreign contributions MUST first be received in a designated FCRA account at SBI’s New Delhi Main Branch (IFSC: SBIN0000691). Mandatory for every FCRA-registered organisation — even if your NGO is in Hyderabad, Chennai, or Mumbai. Receiving in any other bank or SBI branch is a FCRA violation.

Apply Online — Form FC-3A on fcraonline.nic.in

Submit with: registration certificate, trust deed / MoA, list of office bearers, activity report for last 3 years, audited financial statements, PAN, and Aadhaar of all office bearers. Pay ₹10,000 fee online.

Police Verification & MHA Scrutiny

MHA conducts background verification via Intelligence Bureau (IB). Process takes 90 to 120 working days. No communication during this phase.

FCRA Certificate Issued — Validity 5 Years

Certificate issued on approval. Valid for 5 years. Apply for renewal at least 6 months before expiry on the FCRA portal.

Key FCRA Rules — 2020 Amendment (Still in Force 2026)

Admin Expense Cap

Max 20%

Administrative expenses cannot exceed 20% of total foreign contributions received in a year

Sub-Granting

BANNED

Transferring / sub-granting FCRA funds to any other organisation is completely prohibited since 2020

Annual Return

FC-4

Filed by 31 December every year at fcraonline.nic.in. NIL return compulsory even if no foreign contribution received

Utilisation A/C

Any Bank

After receipt in SBI New Delhi FCRA account, funds can be transferred to utilisation accounts at any bank for actual operations

📑 FCRA Annual Return — Form FC-4

Form FC-4 is the annual FCRA return filed at fcraonline.nic.in by 31 December each year. It must include: total foreign contributions received, source-wise breakup, project-wise utilisation report, details of unutilised balances, and a CA-certified balance sheet. If total foreign income exceeds ₹1 crore in the year, a chartered accountant’s audit certificate is mandatory.

Part 7 — Penalties

Consequences of Non-Compliance

Miss 85% Rule

Full Tax

Entire shortfall taxed at normal rates under Section 353 — exemption lost for that year

Anonymous Donations

30% Tax

Tax at 30% on anonymous donations exceeding ₹1 lakh or 5% of total donations (Section 338)

Miss ITR-7

Exemption Lost

Failure to file ITR-7 by 31 October strips exemption for that year under Section 353

No FCRA Registration

Prosecution

Receiving foreign funds without FCRA — bank account frozen, criminal prosecution, up to 5 years imprisonment

Sub-Granting FCRA

Cancel + Prison

FCRA registration cancelled; criminal prosecution for transfer of FCRA funds to another organisation

Admin > 20%

FCRA Cancel

Administrative expenses exceeding 20% of foreign contributions — grounds for FCRA registration cancellation

Part 8 — Complete Checklist

Complete Annual Compliance Checklist for RNPOs

Income Tax Compliance (Annual)

Maintain double-entry books of account with separate funds
CA audit — file Form 112 by 30 September
File ITR-7 by 31 October
Apply 85% of regular income for charitable purposes
File Form 109 if accumulating income (Section 342)
File Form 113 (donation statement) by 31 May
Issue Form 114 donor certificates to all donors
Renew Section 332 via Form 105 (6 months before expiry)
Renew Section 354 (80G) approval every 5 years independently

FCRA Compliance (if Foreign Funds Received)

Hold valid FCRA registration or Prior Permission
Receive all foreign contributions only in SBI New Delhi FCRA account
Keep admin expenses below 20% of total FC received
DO NOT sub-grant / transfer FCRA funds to any other organisation
Maintain separate FCRA books of account
File FC-4 annual return by 31 December (NIL return also mandatory)
CA audit required if FC > ₹1 crore in the year
Renew FCRA certificate every 5 years (apply 6 months before expiry)
Utilise FC funds only for stated objects — no diversion

📚 Official Sources & References 1. Income Tax Department — incometaxindia.gov.in — Chapter XVII-B, IT Act 2025 (Sections 332–355)
2. CBDT — Form 112 replacing Forms 10B & 10BB effective 1 April 2026 under IT Act 2025 / IT Rules 2026
3. IT Act 2025 — Section 332 (Registration), Section 336 (85% Rule), Section 337 (Corpus), Section 338 (Anonymous Donations), Section 341 (Foreign Application), Section 342 (Accumulation), Section 346 (Commercial Activity), Section 353 (Non-compliance), Section 354 (80G / Donor Deduction)
4. New Forms: Form 104/105 (registration), Form 112 (audit), Form 113 (donation statement), Form 114 (donor certificate), Form 109 (accumulation option)
5. Ministry of Home Affairs — FCRA Portal: fcraonline.nic.in
6. Foreign Contribution (Regulation) Act, 2010 — Amended 2020 (20% admin cap, sub-grant prohibition, SBI New Delhi mandatory receipt account)
7. FCRA Forms: FC-3A (registration), FC-3B (prior permission), FC-4 (annual return)

Disclaimer: This article is for educational and informational purposes only. Tax and FCRA laws are subject to change. Always consult a qualified Chartered Accountant or legal advisor before making compliance decisions. Verify current provisions at incometaxindia.gov.in and fcraonline.nic.in.