12A and 80G Registration for NGOs and Trusts

Short answer: Section 12A registration exempts an NGO's income from tax, while Section 80G registration allows donors to claim a tax deduction for their contributions. Both are essential for a charitable trust, society, or Section 8 company. The application is a unified process, filed online using Form 10A for provisional registration or Form 10AB for final registration and renewal, which is now required every five years.

What are Section 12A and 80G registrations?

These are two separate but related registrations under the Income-tax Act, 1961, crucial for any non-profit organisation in India. Section 12A registration is a mandatory first step; without it, an organisation's entire income, including donations, would be taxable. It essentially grants the status of a non-profit entity for tax purposes. Section 80G registration is a subsequent benefit that incentivises donors by making their contributions tax-deductible, thereby making it easier for the organisation to attract funds.

Who is eligible for 12A and 80G registration?

Any organisation established for 'charitable purposes' can apply for these registrations. This includes entities registered as:

• Trusts (registered under the Indian Trusts Act, 1882 or relevant state laws)
• Societies (registered under the Societies Registration Act, 1860)
• Section 8 Companies (registered under the Companies Act, 2013)

The organisation's objectives must fall under the definition of 'charitable purpose' as defined in Section 2(15) of the Income-tax Act. This includes relief of the poor, education, yoga, medical relief, preservation of the environment, and the advancement of any other object of general public utility.

What is the new registration process under Section 12AB?

The old system of perpetual registration has been replaced by a time-bound, renewal-based system governed by Section 12AB. A newly established NGO must first obtain a provisional registration by filing Form 10A online. This is granted for three years with minimal scrutiny. Before this provisional period expires, or within six months of commencing its activities, the NGO must apply for final (regular) registration by filing Form 10AB. This involves a detailed review by the tax authorities. All existing and regular registrations are valid for five years and must be renewed by filing Form 10AB at least six months before expiry.

Provisional vs. Final Registration Comparison

Understanding the difference between the two stages is key to maintaining compliance.

Feature	Provisional Registration (Form 10A)	Final/Renewed Registration (Form 10AB)
Applicant	Newly established trusts/institutions not yet commenced activities.	Existing trusts with provisional registration, or trusts whose 5-year registration is expiring.
Application Form	Form 10A	Form 10AB
Validity	Three years.	Five years.
Scrutiny	Minimal scrutiny. Granted based on application and objects.	Detailed scrutiny of activities, books of accounts, and compliance history.
Purpose	To allow new NGOs to start operating with tax benefits from day one.	To confirm the trust is genuinely carrying out charitable activities as per its objects.
Next Step	Must apply for final registration in Form 10AB after commencing activities.	Must apply for renewal in Form 10AB before the 5-year validity expires.

What documents are needed for the application?

While applying online on the income tax portal, you will need to upload self-certified copies of several documents. The core list includes:

1. Constitutional Document: Certified copy of the Trust Deed (for a trust), Society Registration Certificate (for a society), or Certificate of Incorporation and MOA/AOA (for a Section 8 company).
2. PAN Card: A copy of the organisation's PAN card is mandatory.
3. Trustee/Member Details: PAN and Aadhaar details of all trustees, members of the governing body, or directors.
4. Activity Report: For existing entities applying for renewal, a detailed report of activities undertaken in the last three years is required.
5. Financial Statements: For renewal applications, audited financial statements for the last three years must be submitted.
6. FCRA Details (if applicable): If the NGO is registered under the Foreign Contribution (Regulation) Act, the registration certificate and details must be provided.

What are the compliance requirements after getting registered?

Obtaining registration is not the final step; maintaining it requires ongoing compliance. Key annual requirements include:

• Filing Income Tax Return: All registered NGOs must file their income tax return annually in Form ITR-7, even if their income is below the taxable limit.
• Maintaining Books of Accounts: Proper books of accounts and records of all receipts and expenditures must be meticulously maintained.
• Tax Audit: An audit by a Chartered Accountant is mandatory if the total income exceeds the basic exemption limit.
• Filing Statement of Donations: Every 80G-registered entity must file a statement of donations received in Form 10BD by 31st May following the financial year. Failure to do so attracts a penalty of ₹200 per day.
• Issuing Donation Certificates: After filing Form 10BD, the organisation must download and issue donation certificates in Form 10BE to all donors.

Worked example

Let's consider the "Green Bengaluru Foundation" (GBF), a new public charitable trust established on 1st June 2026. Their primary object is environmental conservation.

1. Provisional Registration: Immediately after creation, GBF's trustees apply for provisional 12A and 80G registration via Form 10A on the income tax portal. They attach the trust deed and trustee details.
2. Approval: By 30th June 2026, they receive a provisional registration order. This is valid for three Assessment Years: 2027-28, 2028-29, and 2029-30.
3. Donation: In October 2026, Mr. Sharma, a tech professional with a taxable income of ₹15,00,000, donates ₹1,00,000 to GBF. The donation qualifies for a 50% deduction under Section 80G.
4. Compliance by GBF: Before 31st May 2027, GBF files Form 10BD, listing Mr. Sharma's donation. They then download Form 10BE and provide it to him.
5. Tax Benefit for Donor: Mr. Sharma can now claim a deduction of ₹50,000 (50% of ₹1,00,000). His taxable income reduces from ₹15,00,000 to ₹14,50,000. Assuming he is in the 30% tax bracket (under the new regime), his tax liability reduces by approximately ₹15,000 (30% of ₹50,000).
6. Final Registration: GBF commences its activities in August 2026. They must apply for final registration in Form 10AB within six months, i.e., by February 2027, to convert their provisional status to a regular 5-year registration.

Common mistakes

1. Missing Renewal Deadline: The biggest mistake is forgetting to file Form 10AB for renewal at least six months before the 5-year validity expires. This leads to automatic cancellation of the registration.
2. Non-filing of Form 10BD/10BE: Failing to file the annual statement of donations (Form 10BD) results in penalties and denies donors their rightful tax deduction, damaging the NGO's reputation.
3. Improper Use of Funds: Using funds for purposes outside the stated charitable objects or for the personal benefit of trustees can lead to cancellation of registration and severe tax consequences.
4. Inadequate Record-Keeping: Not maintaining separate, detailed records of donations, projects, and administrative expenses can cause significant issues during scrutiny by the tax department.
5. Delay in Applying for Final Registration: A new NGO with provisional registration must track its commencement of activities and apply for final registration in Form 10AB within the stipulated six-month period.

How SP & SC helps

Navigating the complex maze of non-profit tax law requires professional expertise. At SP & SC, we provide end-to-end assistance to trusts, societies, and Section 8 companies. Our services include assessing the charitable nature of your objects, preparing and filing applications for provisional (Form 10A) and final/renewal (Form 10AB) registrations, drafting responses to departmental queries, and ensuring all annual compliances like filing ITR-7 and Form 10BD are met accurately and on time. We ensure your organisation remains compliant, allowing you to focus on your mission. Explore our tax consultation services for more information.

Frequently asked questions

H3: Can I apply for 80G registration without having 12A registration?

No, obtaining registration under Section 12A (or 12AA/12AB) is a mandatory prerequisite for applying for Section 80G registration. The tax department first needs to validate your organisation's non-profit status via 12A before granting the donation-related benefits of 80G.

H3: What happens if my registration renewal is rejected?

The organisation loses its tax-exempt status. All subsequent income, including donations, will be taxed at the maximum marginal rate. Furthermore, the entity may be liable to pay an 'exit tax' on its accreted income (the market value of its assets minus liabilities).

H3: Is provisional registration enough to start accepting tax-deductible donations?

Yes. Once you receive the provisional registration order for both 12A and 80G, your income is exempt, and you can start accepting donations for which donors can claim a tax deduction. You must, however, ensure you apply for final registration within the prescribed time limits to continue this benefit.

H3: Can a private family trust get 12A registration?

No. A core condition for 12A registration is that the trust must be for the benefit of the general public, not for specific individuals, family members, or a particular religious community. Any trust whose benefits are restricted to a closed group will not be considered a 'public charitable trust' and will be ineligible.

H3: How much tax benefit does a donor get under Section 80G?

It varies. Donations can be eligible for either a 100% or 50% deduction. Some donations have no qualifying limit (like to the Prime Minister's National Relief Fund), while others are subject to a qualifying limit (10% of the donor's Adjusted Gross Total Income). The NGO's 80G approval order specifies the applicable deduction rate for its donors. For more details, see our guide on Section 80G donation deductions.

Get a fixed-fee quote

Ensuring your NGO's registrations and compliances are in order is critical for its success and sustainability. Share your Trust Deed/MOA, existing registration certificates (if any), and a summary of your activities with us. We will review them and provide a written, fixed-fee quote for handling your registration, renewal, or annual compliance, end to end. Contact SP & SC today or message us on WhatsApp at +91 90356 74566.