80G 12A Registration Hosh February 12, 2025

Section 12AB and Section 80G

An NGO (Non-Government Organization) is formed with a non-profit motive to serve causes related to humans, nature, and animals by establishing a Charitable Trust, Society, or Section 8 Company. Once registered, NGOs can avail several tax benefits and exemptions for both the organization and its donors.

To access these exemptions, it is mandatory to obtain Section 12AB and 80G registrations. Without these registrations, any income or donation received by an NGO will be treated as taxable income.

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Advantages of 12AB and 80G Registration

  1. Tax Exemptions for NGO – NGOs with these registrations can receive more capital and donations as they become eligible for tax exemptions.
  2. Tax Exemption for Donors – Donors can also claim tax exemptions on the amount donated under Section 80G of the Income Tax Act.
  3. FCRA Registration – NGOs with 12AB and 80G registrations can apply for FCRA Registration to receive international funding.

What is Section 12AB?

Section 12AB is an amendment introduced by the Ministry of Finance regarding the compliance and registration process of religious or charitable trusts and institutions. It replaces Section 12AA of the Income Tax Act.

Section 12AB governs the registration of trusts and non-profit entities with the Income Tax Department. Institutions registered under this section are exempt from income tax. Section 8 companies, trusts, and NGOs that obtain 12AB registration are not required to pay tax on their surplus income.

Who is Section 12AB Applicable To?

It applies to all currently registered or approved charitable and religious institutions (including NGOs) under the following sections:

  • Section 12A – Earlier section for NGO and trust registration.
  • Section 12AA – Online system for trust enlistment.
  • Section 10(23C) – Exemptions for specific government and non-government educational institutions.
  • Section 80G – Tax deduction benefits for donors contributing to charitable organizations.

Organizations already registered under these sections must compulsorily migrate to Section 12AB for fresh registration to continue availing exemptions under Sections 10 and 11.

Why Was the New Process of Registration Under Section 12AB Introduced?

  • The earlier manual process was time-consuming, so an e-process was introduced to align with the digital era.
  • The new process limits the registration period to a maximum of 5 years, whereas earlier, it was perpetual.
  • This timeframe limitation allows for regular checks on NGOs to prevent fraudulent activities.

Registration Process for Section 12AB

Case 1: For Trusts or Institutions Already Registered Under Section 12A or 12AA

  • The entity must apply for fresh registration under Section 12AB by 30.06.2021.
  • This new registration will be valid for 5 years from the assessment year in which the earlier registration was granted.

Case 2: For Charitable Trusts or Institutions Provisionally Registered Under Section 12AB

  • Provisional registration under Section 12AB is valid for 3 years from the date of approval.
  • It begins from the first assessment year in which provisional registration was granted.

How to Apply for Section 12AB Registration?

  • Visit the Income Tax Website – www.incometaxindiaefiling.gov.in
  • Login using your ID and password.
  • Go to the ‘E-file’ Menu → Select ‘Income Tax Forms’ → Choose Form 10A for application.
  • Fill in the required details, including:
  • Name of the Trust, Society, or Charitable Establishment
  • PAN Details
  • Registered Address
  • Type of Organization (Religious/Charitable/Both)
  • Contact Details of the Authorized Person
  • Legal Status of the Entity
  • Objectives of the Entity
  • Date of Modification of Objectives (if any)
  • Past Rejection or Cancellation Details (if applicable)
  • FCRA Registration Status (if applicable)
  • Verification by the Commissioner.
  • If the Commissioner is unsatisfied, the application may be rejected.
  • Upon approval, a written order will be issued in Form 10AC.
  • A 16-digit alphanumeric Unique Registration Number (URN) will be assigned to the applicant.

Documents Required for Registration Under Section 12AB

The following documents must be attached with Form 10A for registration:

  • Registration Certificate & MOA/Trust Deed – Two self-attested copies by the Managing Trustee.
  • No Objection Certificate (NOC) from the Landlord (if the office is rented) and an electricity bill of the premises.
  • PAN Card of the Trust.
  • Books of Accounts, Financial Statements, and ITR (if applicable) – Since inception or for the last three years.
  • List of Governing Body or Members of the Trust/Institution.
  • Trust Deed.
  • Activity & Progress Report/Project Report for the Last Three Years.
  • List of Donors with Their Details.
  • Bank Account Statement for the Last Three Years.
  • Any Other Document Required by the Income Tax Department.

Registration Under Section 80G

  • Section 80G registration allows an NGO or charitable institution to offer tax exemption benefits to its donors under the Income Tax Act.
  • Application for Section 12AB and Section 80G can be submitted together or separately after obtaining 12AB registration.

Points to Know Before Applying Under Section 80G

To get approval under Section 80G, the following conditions under Section 80G(5) must be satisfied:

  • The Trust/Society/Section-8 Company must be established in India for charitable purposes.
  • As per Sections 11 and 12 or Clause (23AA) or Clause (23C) of Section 10, any income incurred by the charitable institution should not be included in its total income.
  • For Business Income of a Charitable Institution (Section 11):
  • Separate books of accounts must be maintained.
  • Donations must not be used directly or indirectly for business purposes.
  • The MOA/By-laws should not allow income transfer for non-charitable purposes.
  • The charitable institution should not serve the interests of any particular religious community or caste.
  • Regular accounts of receipts and expenditures must be maintained.

Procedure for Registration Under Section 80G

Follow these steps to apply for Section 80G Registration:

  • Fill Form 10G – Submit the application along with all necessary documents to the Jurisdictional Principal Commissioner or Income Tax Commissioner.
  • Verification by Commissioner – The commissioner will review the application, check the NGO’s activities, and may request additional documents or information.
  • Approval or Rejection – If satisfied, the commissioner will issue a written order confirming registration under Section 80G. If not satisfied, the application may be rejected after giving the applicant a chance to be heard.

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