Sec.80G & Sec.12A

Sec.80G & Sec.12A: complete guide

Introduction

For a charitable organisation in India, two income tax registrations matter more than almost anything else. The first, widely known as 12A registration (and, after the 2020 reforms, as registration under section 12AB), allows the organisation's own income to be exempt from income tax, provided it is applied for charitable or religious purposes and the other conditions of the law are met. The second, widely known as 80G approval, allows people and companies who donate to the organisation to claim a deduction for their donation in their own tax return. Without the first, the NGO may pay tax on its surplus like any other entity. Without the second, many donors will hesitate to give.

These registrations are issued by the Commissioner or Principal Commissioner of Income Tax (Exemptions), through an electronic process on the income tax portal. Since 1 April 2021, registrations are time-bound. A newly formed organisation first receives a provisional registration and approval, generally valid for three years. It must then apply for regular registration within the time allowed, usually at least six months before the provisional period expires or within six months of starting activities, whichever is earlier. Regular registration is generally valid for five years and must then be renewed. From 1 April 2026, the Income-tax Act, 2025 has replaced the Income-tax Act, 1961. The new law carries forward this framework with new section numbers and forms, but the names 12A and 80G remain in common use, and we use them on this page for that reason.

The application is filed online, but the review is careful. The tax department examines the trust deed or memorandum, the genuineness of the activities, compliance with other laws that apply to the organisation, and whether the objects are charitable as defined in the law. For regular registration, the officer can ask for accounts, activity reports, details of donors and spending, and evidence that the organisation is actually doing the work it claims. Weak documentation, vague objects or clauses that allow benefits to founders are frequent reasons for rejection. Our team of chartered accountants and advocates reviews the constitution, prepares the applications and supporting material, and handles the department's queries until the orders are issued.

This page explains who should apply, the legal conditions, the step-by-step process for provisional, regular and renewal applications, the documents you will need, how long it usually takes, our fee and the conditions you must keep meeting after approval. The rules for charitable organisations are amended often, and we check the current position at the time of filing.

Who Needs It

These registrations are relevant to almost every non-profit that wants to raise funds or protect its surplus from tax. Typical applicants include:

• Newly registered trusts, societies and Section 8 companies. New organisations should apply for provisional registration and approval soon after formation, so they can start receiving tax-deductible donations and claim exemption from the first year.
• Organisations with provisional registration nearing expiry. NGOs that hold provisional registration must convert it to regular registration within the time allowed, or they risk losing exemption.
• Organisations whose five-year registration is due for renewal. Regular registrations must be renewed before expiry, generally by applying at least six months before the end of the validity period.
• Older organisations that have never registered. Some trusts and societies were set up years ago but never took these registrations. They can apply, though they should be aware that the department will examine their past activities.
• NGOs seeking CSR funds or institutional grants. Many companies and foundations require these registrations before they fund an NGO. CSR implementing agency registration with the Ministry of Corporate Affairs also generally requires them.
• Organisations that changed their objects. If the objects have been modified in a way that does not match the conditions on which registration was granted, a fresh application is needed within the time allowed after the modification.
• Religious and charitable institutions. Temples, mosques, churches, gurudwaras and similar institutions that run charitable activities may apply, subject to special conditions that apply to religious purposes and to donor deductions.

Key Benefits

• Tax exemption on income. Income applied for charitable or religious purposes, and income properly accumulated, is exempt from tax, subject to the conditions of the law.
• Deduction for donors. Donors can claim a deduction for eligible donations, which encourages individuals and companies to give and helps the NGO grow its donor base.
• Eligibility for CSR funding. Companies spending CSR funds through an implementing agency generally look for these registrations, and they are among the requirements for registration as a CSR implementing agency.
• Access to government and institutional grants. Many grant-giving bodies ask for these registrations as part of their eligibility checks.
• Credibility and trust. The registration orders show that the tax department has reviewed the organisation's objects and activities, which builds trust with donors and partners.
• Planning certainty. Clear registration dates allow the NGO to plan budgets, accumulations and renewals without last-minute surprises.

Provisional and regular registration compared. A provisional registration is granted largely on the basis of the constitution and basic details, because a new organisation has little or no track record. It lets the NGO begin operating with tax benefits. Regular registration involves a closer look at what the organisation has actually done: its accounts, activities, donors and spending. The officer can call for documents and may reject the application if the activities are not genuine or the conditions are not met. Planning for the regular application from day one, by keeping clean records, makes conversion much smoother.

Why both registrations are usually filed together. The two registrations serve different purposes but rely on the same information about the organisation. Filing them together, through the combined application process for new organisations, saves time and keeps the documents consistent. In some cases an organisation may hold one and apply for the other later, and we advise on the right sequence.

Eligibility and Legal Requirements

The main conditions for these registrations under the income tax law are:

• A registered non-profit entity. The applicant must be a trust, society, Section 8 company or other institution established for charitable or religious purposes, with a written constitution such as a trust deed, memorandum of association or society rules.
• Charitable objects. The objects must fall within the legal meaning of charitable purpose, such as relief of the poor, education, medical relief, yoga, preservation of the environment, preservation of monuments, or the advancement of any other object of general public utility, subject to limits on commercial activity.
• Irrevocability and non-profit clauses. The constitution should state that the organisation is non-profit, that income and property will be used only for its objects, and that on dissolution, assets will go to another charitable organisation with similar objects rather than to members.
• No benefit to specified persons. Income or property must not be used for the benefit of the founder, trustees, their relatives or other specified persons, except as permitted.
• Not for a particular religious community or caste. An organisation created for the benefit of a particular religious community or caste may not qualify for exemption, subject to the law.
• Restrictions on business activity. Commercial receipts from activities in the nature of trade or business must stay within the limits set by law for organisations with objects of general public utility.
• Compliance with other laws. The applicant must comply with other laws material to its objects, and the officer can examine this.
• Donor deduction conditions. For the approval allowing donor deductions, there are additional conditions, including that the organisation does not spend more than a set share of its income on religious purposes and that it maintains regular accounts.
• Time limits. Applications must be filed within the time limits set for provisional, regular and renewal registrations. Late applications can mean loss of exemption for the period of delay.
• PAN and digital signature. The organisation needs its own PAN, and the application is verified electronically, usually with the digital signature or electronic verification of the authorised person.

The law and forms in this area change from time to time, especially with the move to the Income-tax Act, 2025. We check the current sections, forms and limits at the time of filing.

Step-by-Step Guide

1. Eligibility and constitution review. We read the trust deed, memorandum or articles and check the objects, non-profit clauses, dissolution clause and any clauses that may be seen as allowing private benefit.
2. Amendments if needed. If the constitution needs changes before applying, we advise on the amendment process under the relevant trust, society or company law and help prepare the documents.
3. Choosing the right application. We confirm whether you need provisional registration, conversion to regular registration, renewal, or a fresh application after modification of objects, and the time window for each.
4. Document collection. We share a tailored checklist and collect the constitution, registration certificate, PAN, details of trustees or members, accounts and activity reports.
5. Activity note and supporting material. For regular registration and renewal, we prepare a clear note on the activities carried out each year, with photographs, beneficiary details, reports and other evidence of genuineness.
6. Preparing the online forms. We prepare the prescribed application forms on the income tax portal with details of the organisation, its objects, trustees, accounts, foreign contribution if any, and declarations.
7. Verification and filing. The authorised person verifies the forms electronically, and we file them on the portal. An acknowledgement is generated for each application.
8. Responding to queries. For regular and renewal applications, the Commissioner's office may issue notices asking for documents or explanations. We draft the replies, upload documents and represent the organisation as needed.
9. Orders of registration and approval. Once satisfied, the department issues orders in the prescribed form with a unique registration number and validity period. For provisional applications, the order is generally issued without detailed inquiry.
10. Post-approval briefing. We explain the conditions attached to the registrations, the annual filings needed to keep them, the donation reporting requirement and the date by which the next application must be filed.

Documents Checklist

For all applicants:

• Trust deed, memorandum of association and rules of the society, or memorandum and articles of the Section 8 company, with all amendments
• Registration certificate from the Sub-Registrar, Registrar of Societies, Charity Commissioner or Registrar of Companies
• Section 8 licence, for a Section 8 company
• PAN of the organisation
• PAN, Aadhaar and contact details of the founder, trustees, governing body members or directors
• Address proof of the registered office
• Bank account details of the organisation
• Details of any registration under FCRA, and of any other registrations held

Additional documents for regular registration and renewal:

• Audited accounts or financial statements for the years since formation, or the last three years, as applicable
• Income tax returns filed for those years
• Annual activity reports, with photographs, brochures, beneficiary lists and media coverage where available
• Details of donations received, including significant donors
• Details of projects, grants and their utilisation
• Copy of the existing provisional or regular registration and approval orders
• Note on any modification of objects and the related documents

Additional documents for religious institutions:

• Details of religious and charitable expenditure separately
• Note on how the institution serves the public rather than a particular community, where relevant

How Long It Takes

The time taken depends on the type of application:

• Constitution review and document preparation: three to seven working days after we receive the documents, longer if the constitution needs amendment first.
• Provisional registration and approval: the law generally provides for the order to be issued within one month from the end of the month in which the application is filed.
• Regular registration and renewal: the department has a longer period under the law, which can run to several months from the end of the quarter in which the application is filed. The actual time depends on the queries raised and how quickly replies are filed.
• Query replies: we usually prepare replies within a few working days of receiving the notice and the information from you.

Applications filed close to the deadline leave little room to fix problems, so we recommend starting well in advance of the due date.

Pricing

Our professional fee for Sec.80G & Sec.12A is ₹ 18,999.

This fee covers:

• Review of the trust deed, memorandum or articles for eligibility
• Advice on amendments to the constitution, if needed
• Preparation of the activity note and supporting material
• Preparation and filing of the applications for both registrations
• Drafting and filing replies to queries raised on the same applications
• Sharing of the registration and approval orders
• A post-approval briefing on conditions, annual filings and renewal dates

Government fees, if any apply, are payable at actual. Formal amendment of the constitution, audit of past accounts, filing of pending past returns, personal hearings requiring extensive representation, and appeals against rejection are quoted separately.

Common Mistakes to Avoid

• Missing the conversion deadline. Organisations with provisional registration often forget to apply for regular registration in time. Missing the window can mean loss of exemption.
• Weak or vague objects. Objects that are too broad, commercial in nature or unclear can lead to rejection. The constitution should describe charitable activities clearly.
• Revocable or private benefit clauses. Clauses allowing the trust to be revoked, or assets to return to the founder or members, can make the organisation ineligible.
• No proof of activities. For regular registration, the department wants evidence of genuine work. Applications with only a constitution and bank statement are likely to face queries.
• Mismatch between objects and activities. Carrying out activities not covered by the objects, or receiving income from sources unrelated to them, raises questions about genuineness.
• Ignoring other laws. Non-compliance with state trust or society laws, FCRA or other laws applicable to the activities can be a reason for rejection.
• Wrong form or wrong category. Each application type has its own form and time limit. Filing the wrong one can lead to rejection and delay.
• Delayed replies to notices. Failing to reply within the time stated can lead to rejection of the application.
• Not informing about modification of objects. If objects are changed, a fresh application is needed within the time allowed. Not doing so puts the existing registration at risk.

What Happens After

After receiving the orders, the organisation must keep meeting the conditions of registration every year:

• Display and share the registration numbers. Mention the registration and approval numbers on donation receipts and in communication with donors.
• Maintain proper books of account and keep records of donations, grants and spending.
• Apply income for the objects as required by law, and file any accumulation intimation on time.
• Get accounts audited where required and file the audit report in the prescribed form before the due date.
• File the annual statement of donations and issue donation certificates to donors within the time allowed.
• File the income tax return in the form prescribed for charitable organisations by the due date.
• Avoid prohibited transactions such as benefits to specified persons and investments in modes not permitted by law.
• Track the expiry date and file for conversion or renewal at least six months before the registration ends.

Our NGO Compliance service can handle these annual obligations for you.

FAQs

What is the difference between 12A and 12AB?

Section 12A was the older provision for registration of charitable organisations. From 1 April 2021, registration moved to a new procedure under section 12AB with fixed validity periods. From 1 April 2026, the Income-tax Act, 2025 carries the framework forward under new section numbers. In practice, all of these are often still called 12A registration.

Can a new NGO apply for both registrations at the same time?

Yes. A newly formed organisation can apply for provisional registration and provisional approval together, so it can start operating with tax benefits from the beginning.

How long is the registration valid?

Provisional registration is generally valid for three years. Regular registration is generally valid for five years. Both must be converted or renewed within the time allowed before expiry.

Can donors claim a full deduction on their donation?

The deduction allowed depends on the category of the recipient and the rules in force. For most NGOs, donors can claim a deduction for a part of the donation, subject to limits based on their income. We explain the current position when you receive approval.

Can an NGO without any activity apply?

A new organisation can apply for provisional registration before starting activities. For regular registration, the department will look at the activities actually carried out, so the organisation should be active and keep evidence of its work.

Do I need audited accounts to apply?

For provisional registration of a new organisation, audited accounts are usually not available and not required. For regular registration and renewal, accounts for past years are generally needed, and audited accounts make the application stronger.

What happens if my application is rejected?

The order will state the reasons. Depending on the reasons, you can fix the issues and apply again, or file an appeal before the appellate tribunal within the time allowed. Appeals are quoted separately.

Can a religious trust get these registrations?

A religious trust can apply for exemption of its income. Approval for donor deductions has additional conditions, including a limit on spending for religious purposes, so not every religious trust qualifies. We review the constitution and activities before advising.

Is there any government fee for these applications?

Government fees, if any apply, are charged at actual. In most cases there is no separate application fee, but the position is checked at the time of filing.

Does a Section 8 company need these registrations?

Yes. A Section 8 company is a non-profit under company law, but it still needs income tax registration to claim exemption and approval for donors to claim deductions. These are separate from the company law licence.

Can I apply if the trust deed is unregistered?

Generally, the department expects a registered constitution document. For a trust, the deed should be registered with the Sub-Registrar or under the applicable state law before applying.

Do I need to renew both registrations together?

Both registrations usually have the same validity period if obtained together, and the renewal applications are typically filed together. We track both dates for you.

Can a registration be cancelled after it is granted?

Yes. The department can cancel the registration if the activities are not genuine, if the conditions are violated, or if specified violations such as application of income for private benefit are found. Regular compliance reduces this risk.

Related NGO & Society services

• Section 8 Company Registration
• Section 8 Compliance
• Society Registration
• Trust Registration