💰 Tax Savings · Structure & split income
Charitable trust / NGO — exemption on applied income (Section 11, §332)
✍️ EaseValue Advisors · Updated 18 Jul 2026 · FY 2025-26
In short
A registered charitable or religious trust pays no tax on income it applies to its objects — with registration under Section 332 (old 12A/12AB) and 80G for donors.
The exemption
Income is exempt to the extent it's applied to charitable/religious purposes; at least 85% must be applied (or accumulated under conditions) each year.
Getting it
- Register under Section 332 (old 12A/12AB) for the exemption.
- Get 80G (Section 135) approval so donors get a deduction.
- File returns and audit reports on time — lapses can cost the exemption.
Who it helps
NGOs, foundations and religious trusts, and CSR/family philanthropy vehicles.
Staying compliant
- Apply ≥ 85% of income to the objects each year, or formally accumulate the rest under the rules.
- Keep Section 332 registration and 80G approval current; file the return and audit report (Form 10B) on time.
- A lapse can cost the exemption — treat compliance as non-negotiable.
The law behind it
Section 11 (old 11) Section 332 (old 12A/12AB) Section 135 (old 80G)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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