What is 12A & 80G Registration?

12A and 80G registrations are vital certifications under the Income Tax Act, 1961, designed to offer tax exemptions for Non-Profit Organizations (NPOs) such as Trusts, Societies, and Section 8 Companies.

• Section 12A registration exempts the NGO’s income from taxation, enabling the organization to utilize its funds for charitable purposes.

• Section 80G registration provides tax deductions to individual and corporate donors, making donations more attractive and encouraging CSR partnerships.

These registrations not only legitimize the NGO's operations but also serve as a powerful incentive for donors and corporates to contribute, ultimately ensuring better financial support for your cause.

✅ Benefits of 12A & 80G Registration
🎯 Why NGOs should apply:

1️⃣ Income earned is exempted from income tax
2️⃣ Donors receive up to 50% tax deduction on donations
3️⃣ Builds credibility with corporates, CSR departments & funding agencies
4️⃣ Eligible to apply for foreign funding after FCRA registration
5️⃣ Essential for long-term NGO growth and grant approvals
6️⃣ Helps maintain a transparent financial record
7️⃣ Boosts public confidence and increases donation inflow

📑 Documents Required for 12A & 80G Registration
📂 Documents checklist for smooth approval:

1️⃣ 🧾 PAN Card – In the name of the Trust/Society/NGO
2️⃣ 🏢 Registration Certificate – Proof of legal existence (Trust deed, Society or Company registration)
3️⃣ 📃 MOA & Rules/Bylaws – Governing documents outlining objectives and structure
4️⃣ 🪪 Aadhaar & PAN of Trustees/Directors – Identity proof of key persons
5️⃣ 📊 Financial Statements – Last 3 years’ audit reports (if applicable)
6️⃣ 📍 Office Address Proof – Utility bill, rent agreement, or ownership proof
7️⃣ 📑 Activity Report – Details of charitable work and achievements

👤 Eligibility for 12A & 80G Registration
🧾 Who can apply?

The following entities are eligible for 12A & 80G registration:

• Charitable Trusts (registered under Indian Trust Act)

• Societies (registered under Societies Registration Act)

• Section 8 Companies (under Companies Act, 2013)

• Must be non-profit in nature and engaged in charitable or religious activities

• Should maintain proper books of accounts and have defined objectives aligned with charity

🔄 Process of Getting 12A & 80G Registration
🔁 Step-by-step guide to registration:

1️⃣ Prepare Documentation – Gather trust deed, PAN, identity proofs, and financials
2️⃣ File Form 10A/10AB – Online application through the Income Tax e-filing portal
3️⃣ Verification by CIT (Exemptions) – Review of application and supporting documents
4️⃣ Clarifications if Needed – Additional information may be requested by the department
5️⃣ Inspection (If Applicable) – Physical or online inspection of NGO activities
6️⃣ Grant of Certificate – Upon approval, receive 12A & 80G registration electronically

⏱️ Timeline for 12A & 80G Registration
⏳ How long it takes:

• Typically processed within 30 to 45 working days

• Duration may vary depending on:

  • Document accuracy

  • Response time for clarifications

  • Department workload and scrutiny level

❓ Frequently Asked Questions (FAQs) about 12A & 80G Registration

1️⃣ Is 12A mandatory for NGOs?
Yes, if you want your income to be tax-exempt.

2️⃣ Can I apply for 80G without 12A?
No. 12A registration is a prerequisite for 80G.

3️⃣ Is this a one-time registration?
Earlier it was permanent. Now, revalidation is required every 5 years under the new regime.

4️⃣ Is there any government fee for registration?
No. The application is free of charge, but professional help is recommended.

5️⃣ Can new NGOs apply for 12A & 80G?
Yes. Even newly formed NGOs are eligible, provided they meet the criteria.

6️⃣ Can FCRA-registered NGOs apply for 80G?
Yes, as long as they have valid 12A and meet 80G conditions.

7️⃣ What is the validity period of the registration?
Typically valid for 5 years, post which renewal is mandatory.

8️⃣ Can we apply both registrations together?
Yes, you can file a combined application through the income tax portal.

9️⃣ Do we need audited financials to apply?
For established NGOs, yes. For new ones, projected budgets may be accepted.

🔟 Will 12A and 80G cover religious organizations?
Only if they are charitable in nature. Purely religious institutions are usually excluded.