Sub-section (1) lets a registered non-profit organisation, or a person referred to in Schedule VII (Table: Sl. No. 1), apply to the Principal Commissioner or Commissioner for approval for the purpose of section 133(1)(b)(ii), in the prescribed form and manner, subject to seven conditions: it must not be expressed to be for the benefit of any particular religious community or caste; it must be established in India for a charitable purpose and must not incur expenditure exceeding 5% of its total income during a tax year which is of a religious nature; its instrument or rules must not provide for transfer of any of its assets for a non-charitable purpose; it must maintain regular accounts of receipts and expenditure; it must prepare and deliver the prescribed statement to the prescribed income-tax authority; it must deliver a correction statement to rectify, add, delete or update that information; and it must furnish a certificate to the donor specifying the amount of the donation, within the prescribed period and in the prescribed manner.
Sub-section (2) carries a Table of five cases with the time to apply, the time for the order and the validity. Sl. No. 1, activities not commenced: apply at any time during the tax year from which approval is sought, order within one month from the end of the month of application, valid three tax years commencing from the tax year of application. Sl. No. 2, activities commenced: apply at any time during that tax year, order within six months from the end of the quarter of application, valid five tax years commencing from the tax year of application. Sl. No. 3, provisional approval held and activities commenced: apply within six months of commencement, same order period, same five-year validity commencing from the tax year of application. Sl. No. 4, provisional approval due to expire and activities not commenced, and Sl. No. 5, approval of a registered non-profit organisation due to expire: apply at least six months before expiry, same order period, valid five tax years following the tax year of application.
Sub-section (3) governs Sl. Nos. 2 to 5. The Principal Commissioner or Commissioner shall call for documents or information or make inquiries to satisfy himself about the genuineness of the activities and compliance with such requirements of any other law as are material for achieving the objects. If satisfied he approves in writing; if not, then after a reasonable opportunity of being heard he rejects the application where it was made under Sl. No. 2, and in any other case rejects it and also cancels the approval, sending a copy of the order to the applicant and the Assessing Officer. Sub-section (4) requires him to grant provisional approval on a Sl. No. 1 application.
Why it is there
Donations to an approved institution carry a deduction in the donor's hands under section 133(1)(b)(ii), so the approval has to be controlled at the entry point. The conditions fix what such an organisation may be and do, the Table gives approval a fixed life so it is tested again rather than granted once, and sub-section (3) requires an actual enquiry into genuineness before an organisation with a track record is approved. The provisional route lets a body that has not yet started work be approved quickly, on a shorter tenure and without that enquiry.
Who it applies to
A registered non-profit organisation applying for approval
A person referred to in Schedule VII (Table: Sl. No. 1)
An applicant holding provisional approval whose activities have commenced or whose approval is due to expire
The Principal Commissioner or Commissioner passing the order
A donor, who receives the certificate specifying the amount of his donation
The Assessing Officer, to whom a copy of a sub-section (3) order is sent
The figures, and what each one turns on
Read the condition in the same row. A figure quoted without it is a wrong answer with a citation attached.
What
Figure
The condition on it
Where
Ceiling on religious-nature expenditure
5% of total income during a tax year
The applicant must be established in India for a charitable purpose; expenditure of a religious nature above this disqualifies
Sub-section (1)(b)
Time to pass the order where activities have not commenced
One month from the end of the month of application
Provisional approval case
Sub-section (2), Table Sl. No. 1, column D
Time to pass the order in all other cases
Six months from the end of the quarter of application
Applications under Table Sl. Nos. 2 to 5
Sub-section (2), Table Sl. Nos. 2 to 5, column D
Validity of a provisional approval
Three tax years
Commencing from the tax year in which the application is made
Sub-section (2), Table Sl. No. 1, column E
Validity where activities have commenced
Five tax years
Commencing from the tax year in which the application is made
Sub-section (2), Table Sl. Nos. 2 and 3, column E
Validity on renewal
Five tax years
Following the tax year in which the application is made
Sub-section (2), Table Sl. Nos. 4 and 5, column E
Time to apply after activities commence
Within six months of the commencement of activities
Where the applicant has provisional approval and activities have commenced
Sub-section (2), Table Sl. No. 3, column C
Time to apply for renewal
At least six months prior to expiry
Of the provisional approval where activities have not commenced, or of the approval
Sub-section (2), Table Sl. Nos. 4 and 5, column C
What this means in practice
Approval has a shelf life, and the validity column is where the difference lies: for Sl. Nos. 1 to 3 the period runs from the tax year of application, for the renewal cases in Sl. Nos. 4 and 5 from the tax year following. Renewal must be sought at least six months before expiry, and an organisation holding provisional approval has a separate, easily missed deadline within six months of commencing activities. The consequence of an adverse finding also differs: under sub-section (3)(b)(i) a Sl. No. 2 application is only rejected, but under (b)(ii) in every other case the Commissioner rejects and cancels the approval as well, so a renewal application can leave the organisation worse off than before it applied.
An example
Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.
An organisation that has not yet begun its activities applies during the tax year from which it seeks approval. Under sub-section (4) the Principal Commissioner grants provisional approval, within one month from the end of the month of application, valid three tax years commencing from that year. Once activities begin it must apply again within six months of commencement under Sl. No. 3, and this time the Commissioner inquires into genuineness — if not satisfied, he may after hearing it both reject the application and cancel the provisional approval.
Where you meet this section
In the approval application filed with the Principal Commissioner or Commissioner in the prescribed form, and in the order granting, refusing or cancelling approval, a copy of which goes to the Assessing Officer. Donors meet the section through the certificate under condition (g), which supports the deduction under section 133(1)(b)(ii).
The words themselves
it is established in India for a charitable purpose and does not incur any expenditure of an amount exceeding 5% of its total income during a tax year which is of a religious nature
Section 354(1)(b), Income-tax Act, 2025.
in any other case, shall pass an order in writing rejecting the application and also cancelling the approval
Section 354(3)(b)(ii), Income-tax Act, 2025.
What people get wrong
Treating an approval as permanent. Sub-section (2) gives it a fixed life — three tax years provisionally, five otherwise.
Reading condition (b) as a bar on religious expenditure. It is allowed up to 5% of total income during a tax year; the excess disqualifies.
Missing the post-commencement window. Table Sl. No. 3 requires an application within six months of the commencement of activities.
Applying for renewal too late. Table Sl. Nos. 4 and 5 require the application at least six months before expiry.
Assuming a rejection merely ends the application. Under sub-section (3)(b)(ii), in every case other than Sl. No. 2 the approval is cancelled as well.
Confusing validity commencing from the year of application with validity following it. Sl. Nos. 1 to 3 run from that year; Sl. Nos. 4 and 5 from the year after.
What this replaced
The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.
80G - Deduction in respect of donations to certain funds, charitable institutions, etc.
Rules of the Income-tax Rules, 2026 that work section 354. Where the rule’s own heading names the section we say so; the rest are marked on reading the rule, which is our derivation and not the department’s. A rule that serves the section silently and that we have missed will not appear here.
Rule 181 — Common application for registration of non-profit organisation or for approval for the purposes of deduction under section 133(1)(b)(ii) — on reading the rule
Rule 190 — Furnishing of statement of particulars in respect of donation and certificate to donor under section 354(1)
A circular binds the department, not you and not a court. Every one below was written under the 1961 Act; it reaches this section because the department’s own concordance carries the provision it names to this one.
Circular No. 6/2026 — Condonation of delay in filing Form No. 10AB electronically for approval under clause(ii) of the first proviso to section 80G(5) o 2026-07-02
Circular No. 7 — 537. Submission of certificate for claiming deductions under section 80G in respect of donations made by an employee to the Prime 2001-03-21
Circular No. 782 — 535. Submission of certificate for claiming deductions in respect of donations made by an employee to the Prime Minister’s Nationa 1999-11-13
Circular No. 777 — 534. Submission of certificate for claiming deduction under section 80G in respect of donations made by an employee to the Nationa 1999-07-01
Circular No. 752 — 533. 100 per cent deduction to be granted from total income while calculating tax for the purpose of TDS for contributions made to 1997-03-26
Circular No. 678 — 532. 100 per cent tax relief for donations made to Chief Minister’s Earthquake Relief Fund, Maharashtra 1994-02-10
Circular No. 416 — 524. Fund/institution recognised under section 10(23C)(iv)/(v) - Whether recognition under section 80G is automatic 1985-04-11
Circular No. 322 — 175. Requirement of investing funds of trust in modes specified in section 13(5) during previous year commencing on or after April 1982-01-16
Circular No. 317 — 176. Pending amendment to modify mode of investment under section 13(5), Commissioners authorised to issue/renew recognition under 1981-12-19
Circular No. 284 — Whether gifts in kind are eligible for exemption under clause (v) of sub-section (1) 1980-10-13
Circular No. 178 — 528. Donation to Prime Minister’s National Relief Fund [sub-clause (iiia) of clause (a) of sub-section (2)] - Money order coupons 1975-09-23
Circular No. 123 — 522. Whether deduction under the section is allowed from income of registered firms and only resultant net income is distributed f 1973-10-31
Circular No. 19 — Section 37(3) l Expenditure on Advertisement/ Maintenance of Guest House/travelling 1969-06-13
A notification is made under a power the Act gives and, within that power, is law. These too were made under the 1961 Act and are placed here by the department’s concordance. We hold 350 in all; the 250 most recent are listed.
Notification No. 3 — Section 80G of the Income-tax Act, 1961 - Deductions - Donations to certain funds, charitable institutions, etc. - Amendment in No 2010-01-12
Notification No. 26 — Section 80G(2)(b ) of the Income-tax Act, 1961 - Deductions - Donations to Religious/charitable Funds, ETC., - Notified Places of 2009-03-16
Notification No. 1488 — Arulmigu Nellaiappar and Arultharum Khanthimathi Ambal Thirukovil Temple specified under section 80G 2000-06-27
Notification No. 777 — Ganeshji Mandir to be a place of public worship of renown throughout the State of Delhi and other nearby States specified under se 2000-03-28
Notification No. 11292 — Ganeshji Mandir" to be a place of public worship of renown throughout the State of Delhi and other nearby States specified under s 2000-03-28
Notification No. 10 — Ananthapuram Sree Krishna Swamy Temple to be a place of public worship of renown throughout the State of Kerala notified under sec 1992-11-30
Notification No. 697E — A notification under section 80G of the Income-tax Act, 1961 1992-09-21
Notification No. 3579 — Sri Kumaraswamy Temple notified under section 80G 1988-10-17
Notification No. 2754 — Sri Kamakala Kameswarar Devasthanam notified under section 80G 1988-08-22
Notification No. 2750 — Sri Dhenupureeswarar Temple notified under section 80G 1988-07-19
Notification No. 2749 — Trikkangode Sri Randumoorthy Temple " to be a place of historical importance in the State of Kerala notified under section 80G 1988-07-19
Notification No. 2222 — Arulmigu Sri Varasidhi Vinayagar Koil notified under section 80G 1988-06-02
Notification No. 2221 — Following temples to be places of historical importance and of public worship of renown throughout the States of Andhra Pradesh an 1988-06-02
Notification No. 2220 — Sri Swetharanyeswaraswamy Temple notified under section 80G 1988-05-11
Notification No. 2510 — Sri Laxminarsimha Swamy Temple " to be a place of public worship of renown throughout the State of Andhra Pradesh for the purpos n 1988-05-09
Notification No. 1115 — Wadia Fire Temple (Wadiaji Atash Behram) Bombay " to be a place of public worship of renown throughout the State of Maharashtra no 1987-03-23
Notification No. 1114 — Sri Kasi Viswanathar Temple and Sri Alagirinathar Temple " in Salem District of Tamil Nadu to be of historic importance for the no 1987-02-26
Notification No. 1113 — A notification under section 80G of the Income-tax Act, 1961 1987-02-26
Notification No. 740 — Mujungavu Sree Parthasarati Krishna Deva Temple notified under section 80G 1987-01-20
Notification No. 739 — Temple of Bhagwan Parshwanath situated at Bhadrawati (Dist notified under section 80G 1987-01-12
Notification No. 517 — The Thrikkakara Kshetra Kshema Samithi notified under section 80G 1986-12-30
Notification No. 100 — Sri Audikesava Perumal Peyalwar Temple notified under section 80G 1986-10-15
Notification No. 3638 — Sri Giriraja Kannigalambal Sametha Srijalanatheswara Alayam" to be a place of public worship of renown throughout the State of Ta 1986-08-01
Notification No. 3591 — Arulmigu Mariamman Vinayagar Temple at Sulakkal notified under section 80G 1986-08-01
Notification No. 1207 — Following temples to be places of public worship of renown throughout the State of Jammu & Kashmir :---
1 notified under section 1984-03-26
Notification No. 630 — Sri Sabarimala Temple (Kerala) to be a place of public worship of renown throughout the State of Kerala notified under section 80G 1982-11-17
Notification No. 2593 — Valanjambalam Devi Temple to be a place of public worship of renown throughout the State of Kerala notified under section 80G 1978-07-24
Notification No. 2587 — Sri Karaneeswarar Temple notified under section 80G 1978-07-18
Notification No. 2400 — Sri Audikesava Perumal Sri Bashya-Karaswami Temple notified under section 80G 1978-06-15
Notification No. 2467 — Sansthan Sri Deo Ganpatipule to be a place of public worship of renown throughout the State of Maharashtra notified under section 1978-05-31
Read this before you rely on it. Every decision below was decided under the Income-tax Act, 1961. It appears here because it is tagged to a 1961 provision that the department’s own mapping carries to section 354. That is an inference we have drawn, not a holding on the new section: where the words changed in the move, the reasoning may not survive. Treat this as the place to start looking, not as authority on the 2025 Act.
CIT (Exemptions) v Shree Sai Baba Sansthan TrustHigh CourtHelps taxpayertagged s.80G Our trust is religious and charitable and holds 80G approval. Can the officer tax our hundi collections under s.115BBC?
Hemkunt Foundations v PCITITATHelps taxpayertagged s.80G The pcit cancelled our 12A registration after a survey. Was he even allowed to do that?
CBDT Circular 7/2024CBDTHelps taxpayertagged s.80G Our Form 10AB was rejected for late filing. Does the CBDT let us apply again?
What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.
