If you are running a Trust, Society or Section 8 Company, obtaining 12A Registration and 80G Registration is essential to claim income tax exemption and donor benefits. This guide covers latest provisions under Income Tax Act 1961 and proposed framework under Income Tax Act 2025, including provisional and permanent registration process.
What is 12A Registration? (Section 12A / 12AB)
12A registration allows a charitable or religious institution to claim income tax exemption under Sections 11 & 12 of the Income Tax Act.
👉 Without 12A, entire income becomes taxable
Key Legal Sections:
- Section 12A – Basic conditions
- Section 12AB – Registration procedure (post Finance Act 2020)
- Section 11 & 12 – Exemption provisions
📌 As per latest law, Section 12AA is replaced by Section 12AB
What is 80G Registration? (Section 80G)
80G registration provides tax deduction to donors who contribute to your NGO.
👉 Helps in:
- Fundraising
- CSR funding
- Grant approvals
Difference Between 12A and 80G
| Particulars | 12A Registration | 80G Registration |
|---|---|---|
| Benefit | Tax exemption to NGO | Deduction to donors |
| Applicable Section | 12A / 12AB | 80G |
| Mandatory | Yes (for NGO) | Optional but important |
| Dependency | Independent | Requires 12A |
New Registration System (Post Finance Act 2020)
The government introduced a completely new registration regime:
- Mandatory re-registration
- Limited validity (5 years/10years)
- Online process
- Unique Registration Number (URN)
📌 All NGOs must apply under Section 12AB & 80G
Provisional vs Permanent Registration
1. Provisional Registration (Form 10A)
- Applicable for new NGOs
- Valid for 3 years
- No detailed activity verification
When to apply?
- At least 1 month before commencement of activities
2. Permanent Registration (Form 10AB)
- Applied after starting activities
- Valid for 5 years/10 years depending upon Gross receipts
Time Limit:
- Within 6 months of commencement of activities, OR
- 6 months before expiry of provisional registration whichever is earlier
Forms Required for 12A & 80G
| Form | Purpose |
|---|---|
| Form 10A | Provisional registration |
| Form 10AB | Final/renewal registration |
| Form 10AC | Registration certificate/order |
| Form 10AD | Final approval order |
📌 Registration order is issued in Form 10AC
Step-by-Step Registration Process
Step 1: Entity Formation
- Trust Deed / Society Registration / Section 8 Company
- Pan apply
- Darpan apply (Mandatory for Opening Bank Account)
Step 2: Apply Online
- File Form 10A on Income Tax Portal
- If new organsation no old financial required but in case of old organisation 3 years financials are mandatory along with Activity report and other documents.
Step 3: Document Submission
- Trust deed
- PAN
- Registration certificate
- Audited Financial statements along with Income Tax returns Upto 3 Financial Years.
Step 4: Verification by Department
- Commissioner examines genuineness of activities
Step 5: Approval
- Registration granted in Form 10AC
Documents Required
- Trust Deed / MOA / AOA
- PAN of entity
- Registration certificate
- Details of trustees
- Audited Financial statements along with Income Tax returns Upto 3 Financial Years.
- Activity report
📌 Documents required are prescribed under Rule 17A
Conditions for 12A Registration
- Activities must be charitable in nature
- No benefit to specified persons
- Proper books of accounts
- Income applied for charitable purpose
Conditions for 80G Registration
- NGO must not be for profit
- Must maintain proper accounts
- Donations should not be for religious purpose (partially allowed)
Renewal & Validity
| Registration | Validity |
|---|---|
| Provisional | 3 Years |
| Final | 5 Years/10 Years |
👉 Renewal required every 5 years/10 Years
Income Tax Act 2025 – Expected Framework
Under the proposed Income Tax Act 2025:
- Continuation of digital registration system
- Increased compliance tracking
- Automated verification through portal
- Stronger transparency norms for NGOs
- Integration with CSR and FCRA data
👉 Core structure of 12AB & 80G expected to continue with refinements
Benefits of 12A & 80G Registration
✔ Income tax exemption
✔ Donor tax benefit
✔ CSR eligibility
✔ Government grant eligibility
✔ Credibility & transparency
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We provide:
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We provide end to end consultancy and liasoning for 12A and 80G registration in Uttar Pradesh. Our team of expert take each file and analyse it as per clients organisation requirments.
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Conclusion
12A and 80G registrations are critical for any NGO or charitable institution to ensure tax benefits, compliance, and funding opportunities. With the new regime under Section 12AB, timely application and renewal are essential.