80G and 12A Registration
If you're running or planning to start a non-profit organization in India, obtaining 80G and 12A registration from the Income Tax Department is crucial. These registrations enhance your NGO’s trustworthiness and also provide valuable tax advantages for both the organization and its donors. Section 12A registration allows the organization to claim complete tax exemption on its income, while 80G registration enables donors to receive tax deductions on their contributions. Together, these approvals can enhance funding opportunities and ensure compliance with legal norms-making them essential for any charitable trust, society, or non-profit company.
In this guide, we’ll explore what 80G and 12A registrations are, why they are important, who can apply, the step-by-step registration process, documents required, and FAQs to help you better understand and successfully register your charitable organization.
Documents Required for 80G and 12A Registration
Common Documents for Both 12A and 80G Registration:
PAN Card of the NGO- Mandatory for identity verification.
Certificate of Registration- Trust Deed (for Trust), Society Registration Certificate (for Society), or Section 8 License (for a company).
MOA / AOA / Trust Deed- Depending on the type of organization.
NGO DARPAN Registration (if applicable)- Especially for those seeking government grants.
List of Governing Body Members / Trustees- With name, address, PAN, and contact details.
Address Proof of Registered Office- Rent agreement, utility bill, or ownership proof.
Annual Financial Statements- Audited accounts for the past 1-3 years, if available.
Activity Report- Details of charitable or social activities undertaken by the organization.
Bank Account Statement- In the name of the NGO.
Digital Signature of the Authorized Person- For online application through the Income Tax portal.
Importance of 80G and 12A Registration
Having 80G and 12A registrations is crucial for any NGO. Here’s why:
Income Tax Exemption:
12A allows organizations to avoid paying income tax, enabling more funds to be used for charitable activities.
Tax Benefit to Donors:
80G provides tax savings to donors, which encourages more people to contribute to your NGO.
Better Fundraising Opportunities:
Government agencies, corporate donors, and funding bodies prefer supporting registered NGOs.
Eligibility for Grants & CSR:
These registrations are mandatory to apply for government grants, CSR funding, and international donations.
No political activity
NGOs applying for 12A and 80G registration cannot engage in any political activity or promote any political party.
Compliance with other laws
NGOs should comply with all other applicable laws, including filing of annual returns with the Registrar of Societies or Registrar of Companies, as the case may be.
Eligibility Criteria for 80G and 12A Registration
Eligibility Criteria for 12A Registration
To qualify for 12A registration, an organization must:
- Be established as a Charitable Trust, Society, or Section 8 Company.
- Your organization should aim to serve public causes like promoting education, helping the underprivileged, providing medical aid, protecting the environment, and similar charitable purposes.
- Use income solely for charitable purposes.
- Not distribute income or profits to members or stakeholders.
- Maintain proper books of accounts and records.
- Apply for registration online through the Income Tax portal in Form 10A.
Eligibility Criteria for 80G Registration
To qualify for 80G registration, an organization must:
- Be established as a Charitable Trust, Society, or Section 8 Company.
- Operate exclusively for charitable purposes.
- Not promote any religion or religious activities.
- Not benefit any particular caste or community.
- Not use donations for business or profit-making purposes.
- Maintain regular books of accounts and file returns.
- Apply through Form 10A (or 10AB for renewal/modification) on the Income Tax portal.
What is 80G Registration?
80G Registration is a certificate granted by the Income Tax Department of India to non-profit organizations like NGOs, charitable trusts, and Section 8 companies. This registration allows donors to claim a tax deduction of 50% or 100% on the amount donated under Section 80G of the Income Tax Act, 1961. It helps NGOs build credibility and encourages more people and companies to contribute to social causes.
Key Highlights:
- Issued under Section 80G of the Income Tax Act, 1961
- Donors can claim 50% or 100% tax deductions on donations
- Boosts credibility and fundraising ability of NGOs
Benefits of 80G Registration
Tax Deduction for Donors
Donations made to an 80G-registered NGO are eligible for a 50% or 100% deduction from the donor’s taxable income, as per the Income Tax Act.
Increased Donations
Offering tax benefits encourages more individuals and corporates to contribute, thereby boosting your NGO's funding.
Enhanced Credibility
80G registration serves as proof that the NGO is genuine and compliant with tax laws, increasing public trust and confidence.
Eligible for CSR Funds
Companies are more likely to donate CSR funds to 80G-approved NGOs as part of their corporate social responsibility.
Government and Foreign Grants
It helps in securing government approvals and foreign funding, as 80G status is often a prerequisite.
Recognition and Reputation
NGOs with 80G are seen as more professional and transparent, which helps in building a good reputation.
Better Outreach and Partnerships
With increased credibility, NGOs can form partnerships with reputed organizations and expand their reach.
Ease in Fundraising Campaigns
When NGOs mention 80G tax benefits in their fundraising appeals, it acts as a strong incentive for potential donors, making campaigns more effective and result-driven.
What is 12A Registration?
12A Registration is a registration granted by the Income Tax Department to non-profit and charitable organizations in India. It exempts the income of such organizations from taxation, provided the income is used solely for charitable or religious purposes. NGOs, Trusts, and Section 8 Companies must obtain 12A registration to avail of tax exemptions on their surplus income.
Key Highlights:
- Issued under Section 12A of the Income Tax Act, 1961
- Exempts NGO income from tax
- Mandatory to apply for 80G registration later
Benefits of 12A Registration
Tax Exemption on Income
The primary benefit is that the NGO’s income is exempt from income tax, provided it is used for charitable or religious purposes.
Eligibility for 80G Registration
12A registration is mandatory to apply for 80G certification, which allows donors to claim tax deductions.
More Funds for Social Work
Since the income is not taxed, the organization can use the full amount for its welfare activities, increasing impact.
Improved Credibility & Recognition
12A-registered organizations are seen as legitimate and compliant, which builds trust among donors, government agencies, and stakeholders.
Access to Government Grants
Many government departments and schemes require 12A registration to release funds or support to an NGO.
Attracts CSR and Institutional Funding
Companies often look for 12A-registered NGOs for CSR funding, as registration shows financial and operational transparency.
Exemption from TDS
NGOs with 12A registration can apply for TDS exemption under Section 197, saving on tax deductions made by clients or partners.
Long-Term Compliance Advantage
Having 12A registration helps NGOs align with long-term legal and financial compliance, making it easier to renew licenses, apply for FCRA, and maintain audit standards in the future.
Difference Between 12A and 80G Registration
| Basis | 12A Registration | 80G Registration |
|---|---|---|
| Purpose | Exempts NGO income from tax | Allows donors to claim tax deduction |
| Benefit | Tax saving for the NGO | Tax saving for the donor |
| Mandatory | Yes, for tax exemption | Optional, but highly recommended |
| Eligibility | NGO must be charitable in nature | NGO must already have 12A registration |
| Governing Law | Section 12A of the Income Tax Act | Section 80G of the Income Tax Act |
Step-by-Step Process for 12A and 80G Registration
Here’s a detailed guide on the Section 8 Company registration process step by step:
Prepare the Required Documents
Ensure all documents mentioned above are ready, scanned, and in PDF format.
Register on the Income Tax E-Filing Portal
Create a login ID for your NGO on the Income Tax E-Filing portal.
File Form 10A (or 10AB)
- Use Form 10A to apply for fresh registration of both 12A and 80G.
- Use Form 10AB for revalidation, modification, or renewal of existing registrations.
Upload Documents and Submit Application
Fill in the required details, upload all documents, and verify the form using DSC (Digital Signature Certificate) or Aadhaar-based OTP.
Processing and Clarification
The Income Tax Department may ask for additional documents or clarifications. Timely response is necessary.
Issuance of Certificate
Upon successful verification, the department will issue 12A and 80G registration certificates.
Frequently Asked Questions
What is 12A registration?
12A registration is a tax exemption certificate that allows an NGO to avoid paying income tax on the surplus income used for charitable or religious purposes.
What is 80G registration?
80G registration allows donors to claim a tax deduction on the amount donated to a registered NGO under Section 80G of the Income Tax Act.
Is it mandatory for NGOs to get 12A and 80G registration?
12A Registration is mandatory for NGOs to claim income tax exemption on their surplus income. Without it, the income of the NGO will be taxable.
80G Registration is also mandatory if the NGO wants to offer tax benefits to donors. It helps in attracting more donors by allowing them to claim deductions on the amount donated.
Can an NGO apply for 80G without 12A?
No. An NGO must first obtain 12A registration to be eligible for 80G registration.
Are both 12A and 80G registrations permanent?
Provisional Registration:
Newly registered NGOs are granted provisional 12A & 80G registrations for 3 years.
Regular Registration:
After the provisional period, NGOs must apply for regular registration, which is granted for 5 years.
Who is eligible for 12A and 80G registration?
Charitable Trusts, Societies, and Section 8 Companies engaged in non-profit activities are eligible.
Can a religious organization get 80G registration?
No. Purely religious organizations are not eligible. However, charitable institutions with secular activities can apply.
Can an unregistered NGO get 80G and 12A registration?
No. The NGO must be formally registered as a Trust, Society, or Section 8 Company.
Can a newly formed NGO apply for 12A and 80G?
Yes, new NGOs can apply. However, providing an activity report or proposed plan is recommended.
Is 12A registration applicable to profit-making companies?
No. Only non-profit organizations are eligible for 12A registration.
Which form is used to apply for 80G and 12A registration?
Form 10A is used for fresh registration. Form 10AB is used for renewal or modification.
Is the application process for 80G and 12A online or offline?
The entire process is online, through the Income Tax E-Filing portal.
What documents are needed for 12A and 80G registration?
PAN card, registration certificate, trust deed/MOA, list of trustees, financials, activity report, bank statement, and office address proof.
Is a Digital Signature required for registration?
Yes, a Digital Signature Certificate (DSC) of the authorized signatory is required for online submission.
What is the timeline to get 80G and 12A certificates?
Provisional Registration
Usually granted within 7–10 working days from the date of application, provided all documents are in order.
Regular Registration
May take around 2–3 months depending on the completeness of documents and response from the Income Tax Department.
Do NGOs need to file returns after registration?
Yes. NGOs must file income tax returns and maintain proper financial records.
What is the validity of 80G and 12A registrations?
It is Valid for 5 years. NGOs must reapply for renewal at least 6 months before expiry using Form 10AB.
Can 80G or 12A registration be cancelled?
Yes. If the organization violates provisions or misuses funds, the registration can be revoked by the Income Tax Department.
Can an NGO operate without 12A and 80G registration?
Yes, but it will have to pay income tax and cannot offer tax benefits to donors, which may limit fundraising potential.
Are donations in kind eligible under 80G?
Only monetary donations made through cheque, bank transfer, UPI, or other digital modes are eligible for tax deduction under Section 80G of the Income Tax Act. Cash donations are also allowed, but only up to ₹2,000. Any amount donated in cash beyond this limit will not qualify for 80G tax benefits. Therefore, donors and NGOs must ensure proper payment methods and receipts to claim deductions.