NADCORP

332 & 354 (Old Sec. 12AB & 80G Registration) for NGOs in India

For charitable organizations, trusts, societies, and Section 8 companies, obtaining 332 Registration and 354 Registration is crucial for long-term sustainability and fundraising. These registrations provide tax exemptions to the organization and tax benefits to donors, making it easier to attract contributions, grants, CSR funding, and institutional support.

Nadcorp Consultancy Services offers end-to-end assistance for obtaining 332 Registration, 354 Approval, renewal of registrations, modification applications, compliance management, and representation before the Income Tax Department.

These registrations are governed by the provisions of the Income Tax Act, 2025, and are considered essential compliance requirements for charitable institutions operating in India.

What is 332 Registration?

332 Registration is the modern registration framework that grants income tax exemption to charitable and religious institutions.

An organization registered under Section 332 can claim exemption on its eligible income, provided the income is applied towards its charitable objectives.

Without 332 registrations, donations, grants, and other income received by an NGO may become taxable under normal income tax provisions.

Key Benefits of 332 Registration

• Income Tax Exemption on eligible charitable income.
• Enhanced credibility before donors and funding agencies.
• Eligibility for government grants and welfare schemes.
• Better compliance standing with authorities.
• Increased financial sustainability.

What is 354 Registration?

354 Registration enables donors to claim deductions against donations made to eligible charitable institutions.

When an NGO obtains an 354 certificate, donors can claim deductions under the Income Tax Act, making contributions more attractive and encouraging philanthropy.

Depending upon the category of institution and nature of donation, deductions may be available at prescribed percentages under the Income Tax Act.

Benefits of 354 Registration

• Encourages higher donations.
• Improves donor confidence.
• Enhances fundraising opportunities.
• Increases CSR funding prospects.
• Strengthens organizational credibility.

Difference Between 332 and 354 Registration

Particulars	332 Registration	354 Registration
Primary Benefit	Tax exemption to NGO	Tax deduction to donors
Beneficiary	NGO/Trust/Society	Donor
Objective	Exemption of charitable income	Encouragement of donations
Importance	Mandatory for tax exemption	Important for fundraising
Applicable To	Registered charitable entities	Donors contributing to approved institutions

While 332 protects the organization from tax liability, 354 helps attract donors by offering tax benefits on donations. Most established NGOs obtain both registrations simultaneously.

Why Every NGO Should Obtain Both Registrations

A charitable organization may struggle to attract institutional donors and CSR contributors without these registrations.

Key Advantages

Income Tax Relief

The NGO can retain more funds for charitable activities instead of paying taxes.

Increased Donations

Donors prefer contributing to organizations that offer tax deductions.

Eligibility for CSR Funding

Many companies prefer supporting NGOs having valid 332 and 354 approvals.

Government Funding Opportunities

Several grant programs require these registrations as eligibility criteria.

Better Public Trust

Registration demonstrates transparency and regulatory compliance.

Who Can Apply for 332 & 354 Registration?

The following organizations can apply:

Public Charitable Trusts

Trusts established for charitable or religious purposes.

Registered Societies

Societies formed under the Societies Registration Act.

Section 8 Companies

Companies incorporated under Section 8 of the Companies Act, 2013.

Educational Institutions

Non-profit schools, colleges, training centres, and educational trusts.

Religious and Charitable Organizations

Organizations carrying out approved charitable and religious activities.

Eligibility Criteria for 332 & 354 Registration

To obtain registration, the organization should satisfy the following conditions:

Charitable Purpose

The institution should be established for:

• Relief of Poor
• Education
• Medical Relief
• Yoga
• Environmental Protection
• Preservation of Heritage
• Public Utility Activities
• Religious Purposes

Non-Profit Character

No income or property should directly benefit founders, trustees, members, or related persons except as permitted by law.

Proper Legal Registration

The organization must be registered as:

• Trust
• Society
• Section 8 Company

Proper Books of Accounts

Regular books of accounts and financial records should be maintained.

Genuine Activities

The institution must carry out activities aligned with its stated objectives.

Provisional and Regular Registration

Under the current framework, newly formed NGOs generally receive Provisional Registration initially.

Provisional Registration

• Granted to newly established NGOs.
• Valid for 3 years.

Regular Registration

The organization must apply for regular registration:

• Within six months before expiry of provisional registration; or
• Within six months from commencement of activities,

whichever occurs earlier.

Validity of Regular Registration

• Generally valid for 5 years.
• Renewal required before expiry.
• Certain small charitable institutions may become eligible for longer renewal periods subject to applicable provisions and departmental guidelines.

Documents Required for 332 & 354 Registration

Organizational Documents

For Trust

• Trust Deed
• Registration Certificate

For Society

• Society Registration Certificate
• Memorandum of Association
• Rules & Regulations

For Section 8 Company

• Certificate of Incorporation
• MOA
• AOA

Statutory Documents

• PAN Card of NGO
• Registered Office Proof
• Utility Bill
• Rent Agreement (if applicable)
• NOC from Property Owner

Financial Documents

• Audited Financial Statements
• Income & Expenditure Account
• Balance Sheet
• Audit Report
• Bank Statements

Activity Documents

• Activity Report
• Project Details
• Photographs of Activities
• Funding Information

Governance Documents

• List of Trustees/Directors/Members
• PAN Details of Governing Body
• Contact Information

Additional Documents

• NITI Aayog DARPAN Registration Number
• Existing Registration Orders
• FCRA Certificate (if applicable)

Registration Process for 332 & 354

Step 1: Document Collection

Gather organizational, financial, and activity-related documents.

Step 2: Registration on Income Tax Portal

Access the Income Tax e-Filing Portal.

Step 3: Preparation of Application

Preparation and verification of registration details.

Step 4: Filing Appropriate Form

Form –

Used for:

• Regular Registration (Form 105)
• Provisional Registration (Form 104)

Step 5: Upload Supporting Documents

Submission of scanned supporting documents.

Step 6: Verification

Application verification through DSC or EVC.

Step 7: Departmental Examination

The Commissioner of Income Tax (Exemptions) examines the application.

Step 8: Approval & Certificate Issuance

Registration order and approval certificate are issued upon satisfaction.

Government Fees & Professional Fees

Government Fees

Currently, Government fee for filing these forms is ₹1,000.

Compliance After Obtaining 332 & 354 Registration

Registration is not the final step. Ongoing compliance is equally important.

Maintain Proper Books of Accounts

Maintain complete records of:

• Donations
• Expenses
• Assets
• Bank Transactions

File Annual Income Tax Return

Eligible NGOs are generally required to file ITR-7.

Donation Reporting

Form 113

Annual statement of donations received.

Form 114

Certificate issued to donors enabling them to claim deductions.

Activity Compliance

Continue activities according to approved charitable objectives.

Consequences of Non-Compliance

Failure to comply with statutory requirements may result in:

• Withdrawal of exemption benefits.
• Cancellation of registration.
• Taxability of income.
• Interest and penalties.
• Difficulty in obtaining grants and donations.
• Legal proceedings in serious cases.

Common Reasons for Rejection of Application

Many applications are rejected due to avoidable mistakes.

Common Reasons Include

• Incomplete application forms.
• Incorrect information in Form 104 or 105.
• Defective constitutional documents.
• Lack of supporting evidence of activities.
• Poor financial records.
• Objects not qualifying as charitable purposes.
• Inconsistency between objectives and actual activities.

Professional review before filing significantly improves approval prospects.

Benefits of Obtaining 332 & 354 Registration

✔ Eligibility for Tax Exemption

✔ Enhanced Donor Confidence

✔ Better CSR Funding Opportunities

✔ Professional Documentation Support

✔ End-to-End Registration Assistance

✔ Renewal & Compliance Management

✔ PAN India Services

✔ Expert Representation Before Authorities

✔ Affordable Professional Fees

Frequently Asked Questions (FAQs)

Can I apply for 332 and 354 together?

Yes. Both registrations can generally be applied for simultaneously through the prescribed online forms.

Is 332 registration mandatory?

Yes, if an NGO intends to claim income tax exemption under the Income Tax Act.

Is 354 Compulsory?

No, but it is highly recommended because it helps attract donations.

What is the validity of provisional registration?

Generally, 3 years from the date of approval.

What is the validity of regular registration?

Typically, 5 years, subject to applicable provisions and renewal requirements.

Can registration be cancelled?

Yes. Registration may be cancelled in cases of non-genuine activities, misuse of funds, or violation of statutory provisions.

Are cash donations eligible for deduction?

Tax benefits for donors are subject to conditions and limits prescribed under the Income Tax Act.