🎯 Introduction: Why 12A and 80G Matter More Than Ever
Non-profit organizations and Section 8 companies work tirelessly to drive social change. However, to sustain and grow their mission, financial support especially through donations and grants is crucial.
That’s where 12A and 80G registrations under the Income Tax Act, 1961 come into play. These are not just tax-saving instruments; they are legal certifications that:
- Protect the NGO’s income from tax
- Allow donors to claim deductions
- And most importantly, build trust and accountability
This article offers a complete, updated guide (as of 2025) on how to obtain 12A and 80G registrations, their benefits, renewal rules, documents, procedures, and strategic impact. At RegistrationMART, we’ve guided hundreds of NGOs and Section 8 companies through these processes, ensuring full compliance and timely approvals.
Let’s begin by understanding what these two registrations really mean.
🔍What is 12A Registration?
12A Registration is granted by the Income Tax Department and exempts the income of a registered NGO or Section 8 company from being taxed.
📘 Legal Reference:
- Section 12A of the Income Tax Act, 1961
- Modified by Section 12AB under Finance Act 2020 (in effect from April 1, 2021)
✅ Benefits of 12A:
| Benefit | Description |
| 🛡 Tax Exemption | No income tax on NGO’s income |
| 🧾 Transparency | Legal proof of genuine charitable purpose |
| 💸 Helps in CSR & Grants | Required for receiving most donor funds |
| ⏳ Long-term Validity | Once approved, valid for 5 years (renewable) |
💡What is 80G Registration?
80G Registration allows donors to claim deductions on donations they make to your NGO.
📘 Legal Reference:
- Section 80G of the Income Tax Act, 1961
✅ Benefits of 80G:
| Benefit | Description |
| 💰 Donor Incentive | Donors save tax (50% or 100% deduction) |
| 🏦 CSR Funding | Required for large institutional donations |
| 🔍 Transparency | NGOs are listed on the Income Tax portal |
| 📢 Promotion | Encourages higher and repeat donations |
📊 Deduction Structure:
| Type of NGO | Deduction Available |
| General NGO | 50% deduction |
| Special Institutions (e.g., PM Relief Fund) | 100% deduction |
⚖ Eligibility Criteria for 12A and 80G
| Criteria | Description |
| Legally Registered | NGO must be a Trust, Society, or Section 8 Company |
| Non-Profit Nature | MOA should clearly mention charitable objects |
| No Profit Distribution | Income cannot be distributed to members |
| Books of Accounts | Must be maintained properly |
| PAN | Mandatory |
| Bank Account | In name of the NGO only |
| Operations | Activities should align with declared objects |
| Audit | Required if turnover exceeds threshold limits |
🛠 Step-by-Step Procedure for 12A & 80G Registration
As per new rules (post-2020), both 12A and 80G must be applied together using Form 10A or 10AB (depending on your stage).
📥 Step 1: Prepare Documents
- Registration Certificate (Trust Deed / MOA & AOA)
- PAN of the NGO
- Bank Account Proof
- Utility bill of registered office
- Details of Trustees/Directors
- Activities report
- Financial statements (3 years if applicable)
- Affidavit / Self-declaration
📌If new NGO (less than 1 year): provide estimated income/expenditure.
🧾 Step 2: File Form 10A (Fresh Registration)
Applicable for:
- New NGOs applying for 12A & 80G for the first time
File online through Income Tax portal with Digital Signature (DSC) or e-verification.
📥 Step 3: File Form 10AB (Renewal or Modification)
Applicable for:
- Existing NGOs already registered under old 12A or 80G
- Change in name, address, trustees, or objects
File online within 6 months of change.
🕵️ Step 4: Department Review & Clarification (if any)
Assessing Officer may:
- Ask for clarification or more documents
- Inspect office physically (rare)
- Reject if objects not charitable
🧾 Step 5: Approval Order Issued
Upon satisfaction, the Commissioner of Income Tax (Exemption) issues:
- 12A Registration Certificate
- 80G Certificate
Both are valid for 5 years. Renewal is required thereafter.
📆 Timeline & Fees
| Stage | Duration |
| Preparation | 2–4 days |
| Filing of Form | 1–2 days |
| Department Review | 30–60 working days |
| Final Certificate | 45–90 working days |
⏳ With RegistrationMART, most clients get approval in under 45 days.
🧾 Mandatory Compliance After Registration
| Requirement | Details |
| Filing of Audit Reports | If income exceeds exemption limit |
| Maintenance of Accounts | Compulsory even for zero income |
| Renewal of Registration | Before expiry of 5 years |
| Filing of Statement of Donations (Form 10BD) | Annually, by 31 May |
| Issuing Donation Receipts (Form 10BE) | Must be given to donors |
| PAN-Aadhaar Linking | For authorized signatory |
| TDS Compliance | Applicable if expenses exceed thresholds |
🧾 Form 10BD & 10BE – A New Requirement
From FY 2021-22 onwards, NGOs must:
- File Form 10BD with donor details annually
- Issue Form 10BE (Donation Certificate) to each donor
📌 Penalty of ₹200/day if not filed + possible disallowance of deduction for donors.
📚 Case Study: How 80G Helped an NGO Raise ₹1.2 Cr in 12 Months
Background:
Sparsh Foundation, a women’s welfare NGO, got 12A & 80G through RegistrationMART in March 2023.
Outcome:
- Added “80G certified” in fundraising campaigns
- Partnered with 2 large companies under CSR
- Received ₹1.2 Cr donations in FY 2023-24
- Donors used 80G receipts for tax benefits
🤝 Why Choose RegistrationMART for 12A & 80G?
| Feature | Our Advantage |
| 🎓 Expert Filing | Drafting, document support, and online submission |
| 🔍 Detailed Guidance | Ensure legal compliance for approval |
| 🚀 Fast Processing | Get certified within 45 days |
| 📢 Donor Support | Help with Form 10BE and fundraising content |
| 🔄 Renewal Services | Auto-reminders and proactive renewals |
| 👨⚖️ Legal Clarity | Draft changes to Trust Deed/MOA if needed |
❌ Common Mistakes NGOs Make (and How to Avoid Them)
| Mistake | Solution |
| Using personal bank account | Open bank account in NGO’s name |
| Not maintaining books | Hire accountant or NGO-friendly CA |
| Activities not matching objectives | File deed/MOA amendment via RegistrationMART |
| Late renewal | Keep a compliance calendar |
| Not filing 10BD | Register early and automate via us |
🔍 FAQs
Q1. Can we apply for 80G without 12A?
No. 80G is granted only after or with 12A.
Q2. Can we re-apply if application is rejected?
Yes, after modifying deed or removing objections.
Q3. What is the difference between 10A and 10AB?
Form 10A: New registration
Form 10AB: Renewal / Modification
Q4. Can a new NGO with no activities apply?
Yes, but you must provide activity projections and clear charitable objects.
Q5. How often must we renew?
Every 5 years as per new rules (post-2020 regime).
🏁 Conclusion: Make Your NGO Tax-Exempt and Donor-Friendly
12A and 80G registrations are not just legal necessities they are powerful trust tools for NGOs and donors. By making your NGO tax-exempt and donor-compliant, you unlock a world of funding opportunities, CSR partnerships, and global impact.
With RegistrationMART’s 10+ years of experience, we ensure error-free filing, strong legal drafting, and seamless support throughout the approval journey.
