Registration
Apply Online for 12A and 80G Registration

In India, non-profit organizations can greatly benefit from two specific registrations offered by the Income Tax Department: 12A and 80G.

The 12A registration provides non-profit organizations with an exemption from income tax on their earned income, significantly enhancing the funds available for their charitable initiatives.

Moreover, the 80G registration presents a considerable advantage to the donors of these organizations, enabling them to claim deductions on their taxable income for any contributions made.

Therefore, non-profit organizations must complete the online registration process for 12A and 80G to take advantage of these tax deduction benefits.

At IndiaFilings, we recognize how crucial it is to secure Section 12A and 80G registrations for your non-profit organization. We provide thorough support and advice during the registration process to ensure you receive the benefits and privileges outlined in these sections of the Income Tax Act.

Reach out to our specialists today to obtain your Section 12A and 80G registrations with ease!

What is 12A and 80g Registration?

The registrations under Sections 12A and 80G are essential tax provisions for NGOs in India, allowing charitable organizations to benefit from certain tax exemptions and advantages. These exemptions are regulated by Sections 12A/12AA and 80G of the Income Tax Act of 1961:

12A Registration

This certification is granted under the Income Tax Act of 1961 to non-profit organizations in India.

Once an NGO is registered under Section 12A, it qualifies for tax exemption on its income, which means it is not required to pay taxes on surplus funds obtained from grants, donations, or other sources of revenue, provided these funds are utilized for charitable activities.

This registration is essential for NGOs as it aids in maximizing the funds accessible for their operations.

80G Registration

While the 12A registration is advantageous for the NGO, the 80G registration aims to motivate donors. It enables individuals or organizations that contribute to a 12A-registered NGO to claim a deduction on their income tax. This deduction represents a percentage of the donated amount and can greatly lower the donor’s taxable income. The intent behind this provision is to promote increased donations by offering financial incentives to donors.

The primary distinction between 12A and 80G is that 12A registration grants tax exemption on the income of an NGO, whereas 80G registration permits donors to receive tax deductions on their contributions. Both registrations improve NGOs’ capacity to attract donations by providing fiscal benefits to both the organizations and their supporters. Therefore, obtaining the 12A 80G certificate is beneficial.

Who can apply for 12A and 80G registration?

The types of organizations listed below are qualified to apply for 12A 80G registration:

  • Charitable Trusts: Organizations established for charitable purposes.
  • Registered Societies: Societies that are formally registered under the Societies Registration Act or similar state laws.
  • Section 8 Companies: Companies formed under Section 8 of the Companies Act 2013 specifically for promoting charitable activities.
  • Religious Organizations: Groups that primarily focus on religious activities and charitable work.
  • Educational Institutions: Non-profit schools, colleges, and educational foundations.
  • Medical Institutions: Non-profit hospitals and medical research organisations

Eligibility Criteria for 12A 80G Registration

To qualify for Section 12A/80g registration, organizations must fulfill certain criteria established by the Income Tax Department:

12A Registration Eligibility Criteria 

This segment relates to the registration of charitable or religious NGOs, allowing them to benefit from tax exemptions on income received from donations. To be eligible for Section 12A registration, an organization must fulfill the following requirements:

  • Nature of the Organization: This applies to trusts, societies, or Section 8 companies that are created exclusively for charitable or religious objectives as outlined in Section 2(15) of the Income Tax Act. This encompasses activities such as alleviating poverty, providing education, offering medical assistance, preserving the environment, and others. Entities engaged in these activities must secure a 12A certificate for the trust.
  • Charitable Activities: The organization is required to actively participate in its declared philanthropic goals without any profit motives that advantage particular individuals or groups. Those who meet this criterion are eligible to receive a 12A certificate for trust.
  • Registration Proof: Must be duly registered as a trust, a society, or a Section 8 company under the relevant laws, with proof required during the application process.
  • Income Utilization: All income and assets must be exclusively used for charitable or religious purposes, without any direct or indirect benefit to members or specific individuals.
  • Financial Documentation: Proper bookkeeping and documentation must be maintained to reflect accurate financial operations.
  • Tax Compliance: Annual tax returns must be filed on time, even with exempt status, to maintain this exemption.
  • Political Neutrality: The organisation should not participate in or support political activities, as this can result in the revocation of the 12A status.

80G Registration Eligibility Criteria

This enables donors to receive tax deductions for contributions made to qualifying non-profit organizations.

The criteria for Section 80G registration eligibility includes:

  • Nature of Organisation: Must be a non-profit operating as a registered trust, society, or Section 8 company focused on charitable or religious purposes, serving the public interest.
  • 12A Registration Requirement: Organizations must already be exempt under Sections 11 and 12, evidenced by a 12A registration.
  • Restrictions on Usage of Income: The governing documents must strictly limit the use of funds to charitable purposes only.
  • Inclusivity of Beneficiaries: The benefits of the organization should not be restricted to any particular religious community or caste, ensuring a wider societal benefit.
  • Regular Accounting: Accurate and regular financial records must be kept to provide transparency and accountability.

Additional Notes:

  • Religious Trusts: 12A registration is suitable only for public religious trusts, not for those serving private religious functions.
  • Scope of Public Utility Activities: These should not involve commercial activities unless they support the organization’s charitable purpose, with such income not exceeding 20% of total receipts in the previous year.

Validity of 12A and 80G Registration

The validity of 12A and 80G registrations is contingent upon the type of registration acquired. Although there is no requirement for annual renewal, it is necessary to renew registrations periodically. Provisional registration is valid for a duration of 3 years, whereas regular registration remains valid for 5 years. The renewal process should be started at least 6 months prior to the expiration of the current registration. For instance, if the registration is valid until 31st March 2025, the renewal application must be submitted on or before 30th September 2024 to maintain continuous compliance.

12A and 80G Registration Documents Required

In order for NGOs to effectively finalize the online registration for 12A and 80G, it is essential that they submit a complete array of documents necessary for 12A and 80G registration that confirm their legal registration. Not providing these documents may lead to the application being deemed incomplete and ultimately rejected by the authorities. Below is a comprehensive list of the documents needed for 12A and 80G registrations in India.

Here is the list detailing the documents required for 12A and 80G registration:

  • Trust Deed/Society Registration Certificate/Section 8 Company Certificate
  • Memorandum of Association and Articles of Association (for Section 8 companies only)
  • PAN card of the organization
  • Bank account statement of the organization
  • Audited accounts of the organization for the last three years
  • List of trustees/members/directors of the organization
  • List of activities carried out by the organization

12A and 80G Registration Process Online

According to the Finance Acts of 2020 and 2021, it is now required to submit Form 10A for registrations under Sections 12A and 80G of the Income Tax Act. We have provided a comprehensive step-by-step guide below detailing the updated process for applying for 12A and 80G online.

Please note: The previous provisions under Section 12AA have been replaced by Section 12AB. As a result, all NGOs that were registered under Sections 12A, 12AA, or 80G are now required to re-register under Section 12AB, effective from April 1, 2021.

Step-1: NGO Formation and Registration

Initially, determine the suitable legal framework for your NGO—whether it be a trust, society, or Section 8 company—according to state laws. Once you have made your choice, proceed to officially register your organization with the relevant authority, such as the Registrar of Societies or Companies.

IndiaFilings is available to assist you in registering your society, NGO, or Section 8 company. Our team of experts is ready to support you throughout the entire process.

Step 2:  Document Preparation

Collect essential documents required for 80G and 12A registration through Form 10A. This includes your organization’s registration certificate, MOA/Bye Laws/Trust Deed, audited financial statements, FCRA Registration, and NGO Darpan ID, among others. These documents will confirm the legitimacy and existence of your NGO.

Step-3: Application Preparation 

Complete Form 10A, the designated form for 12A and 80G registrations, which can be obtained from the Income Tax Department’s website or its local offices. Make sure to accurately and comprehensively include all information regarding your organization’s goals, activities, and board members.

Step-4: Application Submission 

Please submit Form 10A together with the necessary documents either at the Office of the Income Tax Commissioner or via the Income Tax Website. This submission initiates the official registration process for 12A/80G. Ensure you retain copies of all documents submitted for future reference.

Step-5: Review and Inspection 

The tax authority will review your application and may inspect your NGO’s activities and financial records to ensure they meet the registration requirements for Sections 12A/80G.

Step-6: Registration Confirmation

If your application meets the required standards and is successful, your NGO will receive registration under Sections 12A/80G.

Conversely, should any discrepancies arise, your application could be denied; however, you will have the chance to rectify the identified issues.

Step-7: 12A & 80G Registration Certificate

Upon successful registration, you will obtain an official 12A & 80G Registration certificate, which verifies your NGO’s qualification for tax exemption in accordance with Sections 12A & 80G. This 12A 80G certificate is essential for validating your organization’s legal standing and facilitating tax advantages for both the NGO and its contributors.