12A and 80G Registration for Exemption

What is 12A Registration?

12A (now 12AB) registration is a one-time registration granted to trusts, NGOs and other not-for-profit organisations under the Income Tax Act, 1961, that exempts their income from income tax.

• Benefit: The organisation's income applied to charitable purposes is exempt from income tax
• Who Grants It: The Income Tax Department (Commissioner of Income Tax / Principal CIT)
• Applies To: Trusts, societies, Section 8 companies and other charitable institutions
• Current Section: Registration is now granted under Section 12AB (replacing the old 12A/12AA)
• Validity: Provisional registration is granted for 3 years; regular registration for 5 years (renewable)

What is 80G Registration?

80G registration is granted to an NGO/charitable institution so that donors who contribute to it can claim a deduction from their taxable income under Section 80G of the Income Tax Act.

• Benefit: Donors can claim a deduction (commonly 50% of the donated amount, subject to conditions)
• Encourages Donations: Makes donating to the organisation more attractive
• Applies To: NGOs already registered under 12A/12AB
• Donor Requirement: Donors need a valid donation receipt and the NGO's 80G details
• Validity: Provisional registration for 3 years; regular registration for 5 years (renewable)

Difference Between 12A and 80G

Who Can Apply for 12A & 80G Registration?

• Charitable Trusts (public charitable / religious trusts)
• Societies registered under the Societies Registration Act
• Section 8 Companies (non-profit companies)
• NGOs working for relief of the poor, education, medical relief, etc.
• Organisations engaged in the advancement of any object of general public utility
• Religious and charitable institutions established for genuine charitable purposes

Note: The organisation's objects and activities must be genuinely charitable and non-profit. For eligibility specific to your organisation, connect with our executive.

Documents Required for 12A & 80G Registration

• PAN Card of the trust / society / Section 8 company
• Certificate of Registration / Trust Deed / MOA & AOA / Society registration certificate
• PAN and Aadhaar of the trustees / members / directors
• Address proof of the registered office (electricity bill / rent agreement / NOC)
• List of trustees / governing body members with their details
• Details of the activities of the organisation since inception
• Books of accounts and financial statements (for the last 1 to 3 years, if applicable)
• Income tax returns of the organisation (if filed earlier)
• Details of donations received and welfare activities undertaken
• Bank account details of the organisation
• Digital Signature (DSC) of the authorised signatory

Our 12A & 80G Registration Process

1. Consultation: Assess your organisation's structure, objects and eligibility
2. Document Collection: Gather the trust deed/MOA, financials and trustee details
3. Form Preparation: Prepare Form 10A (new/provisional) or Form 10AB (renewal/regular) as applicable
4. Online Filing: File the application on the income tax e-filing portal with required attachments
5. Verification: The Income Tax authority reviews the application and may seek clarifications
6. Response to Queries: We respond to any notices or queries raised by the department
7. Grant of Registration: 12AB and 80G registration certificates are issued with a unique registration number
8. Ongoing Compliance: We assist with annual return filing, audit and renewal

Benefits of 12A & 80G Registration

• Income Tax Exemption: The NGO's income is exempt from income tax under 12AB
• Attracts Donors: 80G allows donors to claim deductions, encouraging more donations
• Credibility: Enhances the trust and credibility of the organisation
• Grants & Funding: Required to receive government grants and CSR funding from companies
• FCRA Support: Helps in obtaining FCRA registration for foreign contributions
• Financial Sustainability: More funds are available for charitable activities
• Wider Reach: Improves the organisation's ability to raise funds from the public and corporates

Validity, Renewal & Compliance

• Provisional Registration: New organisations get provisional registration valid for 3 years
• Regular Registration: Regular registration is valid for 5 years and must be renewed
• Renewal: Application for renewal must be filed before expiry using Form 10AB
• Annual Returns: File income tax returns (ITR-7) and audit reports every year
• Statement of Donations: 80G-registered NGOs must file a statement of donations (Form 10BD) and issue donation certificates (Form 10BE)
• Maintain Records: Maintain proper books of accounts and records of activities

Frequently Asked Questions (FAQs)

Q1. Who should apply for 12A and 80G registration?

Charitable trusts, societies and Section 8 companies engaged in genuine charitable activities should apply. For eligibility specific to your organisation, connect with our executive.

Q2. Can 12A and 80G be applied together?

Yes, both can be applied together, but 80G can only be granted to organisations that hold a valid 12A/12AB registration.

Q3. What is the benefit of 80G to a donor?

A donor can claim a deduction (commonly 50% of the donated amount, subject to conditions and limits) from their taxable income.

Q4. What is the validity of 12A and 80G registration?

Provisional registration is valid for 3 years and regular registration for 5 years, after which it must be renewed.

Q5. Which forms are used for the application?

Form 10A is used for new/provisional registration and Form 10AB is used for renewal/regular registration, filed online on the income tax portal.

Q6. Is registration a one-time process now?

No. Under the new regime, registration is granted for a limited period (3 or 5 years) and must be renewed periodically rather than being permanent.

Q7. How long does the process take?

With complete documents, registration is typically granted within a few weeks. For more details, connect with our executive.

Ready to Get Your 12A & 80G Registration?

Contact us today for fast and hassle-free 12A and 80G registration for your NGO, trust or society!