Overview
80G and 12AB registrations are essential for non-profit organizations in India, including NGOs, trusts and societies. These registrations, granted by the Income Tax Department, provide tax exemptions and enhance credibility in fundraising.
- 80G Registration – It allows donors to claim tax deductions on eligible donations, thereby encouraging more contributions.
- 12AB Registration (which replaced 12A/12AA from April 2021) – Provides income tax exemption to the NGO itself on eligible income such as donations, grants or other sources.
Together, these registrations increase compliance, open access to CSR funds and help charitable institutions sustain their welfare activities.
Why 80G and 12AB Registration is Important?
- Tax benefits – Donors get deductions under 80G; NGOs don’t pay tax on eligible income under 12AB.
- Credibility & trust – Corporates, CSR contributors and large donors prefer registered NGOs.
- Legal recognition – Establishes compliance and transparency with government authorities.
- Access to funding – Enables eligibility for grants from government bodies, international agencies and philanthropists.
- Sustainability – Helps NGOs reduce tax liability and better manage finances.
Eligibility Criteria
- Applicant must be a Trust, Society or Section 8 Company.
- An organization should pursue charitable purposes like education, poverty relief, medical aid, environmental or general public utility.
- Income and assets must not benefit trustees or members personally.
- Proper books of accounts must be maintained.
- Activities should be genuine and not primarily for private gain or limited to a particular caste/community (exceptions apply to minority institutions).
Process of Registration
1. Prepare Application – Gather all necessary documents.
2. File Form 10A / 10G – Submit online via the Income Tax Department’s e-filing portal.
- Form 10A – For fresh or provisional registration under Section 12AB.
- Form 10G – For 80G registration.
- Form 10AB – For renewal or modifications.
3. Upload Documents – Trust deed, registration certificate, PAN, activity reports, audited accounts, etc.
4. Verification by Commissioner (Exemptions) – The Commissioner reviews and may seek clarifications.
5. Grant of Certificate – If satisfied, the Commissioner issues registration under 12AB and/or 80G along with a Unique Registration Number (URN) in Form 10AC.
Required Documents
- Trust Deed / Society Registration Certificate / MOA & AOA (for Section 8 Company)
- PAN card of the NGO
- Registration certificate of the entity
- Identity & address proof of trustees/board members (PAN/Aadhaar)
- Proof of registered office address
- Books of accounts and audited financials (if applicable, usually 1–3 years)
- Activity reports and donor details
- FCRA/Darpan registration details (if applicable)
Benefits of 80G and 12AB Registration
- Income tax exemption for NGOs on eligible income.
- Donors receive tax deductions under Section 80G (50% or 100% depending on the category of donation).
- Improved eligibility for CSR funding from corporates.
- Enhanced credibility with stakeholders.
- Access to national and international grants.
- Continued tax benefits through timely renewal/revalidation.
Fees for Registration
- Government Fee – No major statutory fee is charged for filing Forms 10A/10AB/10G.
- Professional/consultancy charges may apply if the services of experts are engaged.
Timeline & Validity
- Provisional Registration – New NGOs without prior activities can obtain provisional approval valid for 3 years.
- Regular Registration – After renewal/revalidation, validity is generally 5 years.
- Extended Validity – NGOs with annual income (before exemption) below ₹5 crore in each of the last two years may receive validity up to 10 years under new rules.
- Processing Time – Typically within 3 months, subject to timely submission of documents and clarifications.
- Renewal – Must apply at least 6 months before expiry of validity.
FAQs
Yes. NGOs commonly apply for registration under Section 12AB (tax exemption for the organisation) and Section 80G (tax deduction for donors) at the same time because 12AB/charitable status is usually required before 80G benefits are granted.
Orders are issued by the Income-Tax authority (PCIT/CIT) in the Income-tax (Exemptions) division, the decision is recorded in writing after examining the application and documents.
Yes, a newly formed trust/society/Section-8 company may apply. If there is no prior activity, the department commonly grants provisional registration (temporary approval) — the period and conditions are specified in the registration order. Administrative processing and documentary checks are required.
Yes. Registration under 12AB or approval under 80G can be cancelled or withdrawn if the NGO fails conditions (misuse/diversion of funds, poor accounting, or activities outside approved objects). The order will set out reasons and any opportunity to be heard.
Yes. Registered NGOs must file the prescribed return (usually ITR-7) annually and comply with audit/reporting requirements (Form 10B/10BB, etc.) as applicable to maintain exemption. Failure to file can affect the exemption.
Yes, the authority may limit 80G benefits to specific funds, activities, or donations, and the registration certificate may state such conditions. It is better to describe this as “conditional or restricted approval” rather than a separate class.
Yes. 80G enhances credibility and may improve an NGO’s chances of receiving CSR grants, although companies must also follow CSR rules independently.
It depends. Donations fall into categories: 100% deduction (with or without limit) or 50% deduction (with or without limit); some categories are subject to a limit (for example, 10% of adjusted gross total income) and cash donation limits apply (no deduction for cash donations above ₹2,000). Always check the donation’s category before claiming.
Provisional registration is a temporary approval (commonly for 3 years in practice for new applicants) that allows an NGO to receive the benefits while it builds an activity record. Before expiry, the NGO must apply for regular registration and submit activity/financial evidence.
Yes. Applications/forms are filed online and must be digitally verified, typically by DSC of the authorised signatory or by the prescribed electronic verification (Aadhaar-based e-verification/EVC), as per the form’s instructions.
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