Overview / question
12A and 80G Registration are essential income tax registrations for Trusts, Societies, and Section 8 Companies engaged in charitable or non-profit activities. These registrations are granted by the Income Tax Department and provide major tax benefits to both the organisation and its donors.
While 12A registration exempts the NGO’s income from tax, 80G registration allows donors to claim tax deductions on donations made to the organisation.
What is 12A Registration?
12A Registration enables a non-profit organisation to claim exemption from income tax on surplus income, provided the income is used for charitable purposes.
Without 12A registration, an NGO is treated as a normal entity and taxed accordingly.
What is 80G Registration?
80G Registration allows donors to claim tax deductions (50% or 100%) on donations made to the NGO under Section 80G of the Income Tax Act, 1961.
This registration significantly boosts donor confidence and fundraising capability.
What is 80G Registration?
- Income Tax Exemption
12A registration ensures that the NGO’s income is not taxed. - Donor Tax Benefits
80G registration encourages donations by offering tax deductions to donors. - Increased Credibility
Registered NGOs gain higher trust among donors, corporates, and government bodies. - Eligibility for Grants & CSR Funds
Many government and CSR funding agencies require 12A & 80G compliance. - Long-Term Financial Sustainability
Tax savings help NGOs channel more funds toward charitable activities.
Validity of 12A & 80G Registration
- Registrations are generally valid for 5 years
- Renewal must be applied before expiry
- Provisional registration may be granted to new NGOs
| Basis | 12A Registration | 80G Registration |
| Benefit To | NGO | Donors |
| Tax Advantage | Income tax exemption | Donation tax deduction |
| Mandatory | Yes, for tax exemption | Optional but recommended |
| Applied Under | Income Tax Act | Income Tax Act |
Who Can Apply for 12A & 80G Registration?
- Charitable Trusts
- Registered Societies
- Section 8 Companies
- NGOs engaged in charitable, religious, educational, or social welfare activities
Compliance After 12A & 80G Registration
- Proper maintenance of books of accounts
- Filing annual income tax returns
- Use of funds strictly for charitable purposes
- Avoidance of prohibited commercial activities
Documents Required for 12A & 80G Registration
- Registration certificate of Trust / Society / Section 8 Company
- PAN card of the organisation
- MOA / Trust Deed / Rules & Regulations
- Activity report and photographs
- Financial statements (if applicable)
- Details of trustees / directors / governing body
- Bank account details
