12A registration exempts an NGO's income from tax, and 80G approval lets donors claim a deduction for donations. New trusts, societies and Section 8 companies apply online in Form 10A for provisional registration, typically valid for three years, then apply in Form 10AB for regular registration valid for five years. Approval comes from the Commissioner of Income Tax (Exemptions).
What 12A and 80G do
12A (12AB): income of the NGO applied to charitable objects is exempt from tax. 80G: donors can deduct eligible donations from their taxable income, which makes fundraising easier.
Who can apply
- Public charitable trusts
- Registered societies
- Section 8 companies
The organisation must have charitable objects, and 80G also requires that income is not used for any religious community or caste.
Application process
- File Form 10A online on the income tax portal with registration documents and PAN.
- Receive provisional registration or approval.
- Before expiry, or within six months of commencing activities, file Form 10AB with activity details and accounts.
- The CIT(E) may seek information before granting regular registration.
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Get expert help →Annual compliance
- Audit of accounts and audit report in the prescribed form
- ITR-7 filed on time
- Form 10BD statement of donations by 31 May
- Form 10BE donation certificates to donors
- Application of income as required by law
Frequently asked questions
Can a new NGO apply for 12A and 80G immediately?
Yes. Newly formed NGOs apply for provisional registration in Form 10A right after registration, before starting activities. Regular registration follows later in Form 10AB.
What deduction does a donor get under 80G?
Depending on the institution and fund, donors can deduct 50% or 100% of eligible donations, with or without a qualifying limit. Cash donations above Rs 2,000 are not deductible.
What if 12A registration lapses?
If registration lapses or is cancelled, the NGO's income becomes taxable, and in certain cases tax on accreted income may apply. Renew on time to avoid this.
Is 80G required for CSR funding?
CSR eligibility depends on CSR-1 registration with the MCA, along with 12A and 80G registration, which are generally prerequisites for implementing agencies.
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