Section 80G and 12A Registration: Complete Process, Documents, and Renewal Guide

Introduction

If you’ve started an NGO, trust, or society and want to make your organization tax-exempt -while also helping your donors get tax benefits – you’ll need 12A and 80G registration under the Income Tax Act, 1961.

These registrations not only help you save taxes but also make your NGO more credible and transparent in the eyes of donors and authorities.

1. What is 12A Registration?

Therefore, obtaining 12A registration gives your NGO or trust the right to claim tax exemption on its income. Moreover, this means that any income used for genuine charitable or religious purposes will not be taxed.

Without 12A, your organization’s income will be treated like a business and taxed accordingly -even if it’s used for charity.

2. What is 80G Registration?

In addition, 80G registration greatly helps your donors. It allows them to claim tax deductions for the amount they donate to your NGO, and therefore, encourages more people to contribute towards your charitable activities.

So when donors know their contribution will also save them tax, they’re more likely to donate.
That’s why having both 12A and 80G registrations increases trust and funding.

3. Benefits of Getting 12A and 80G Registration

✔ Full tax exemption on income used for charitable work
✔ Builds strong donor confidence and credibility
✔ Makes your NGO eligible for CSR funding and government grants
✔ Encourages more donations (since donors also get tax relief)
✔ Shows financial transparency and legal compliance

4. Documents Required for Registration

Here’s what you’ll need while applying for 12A and 80G:

PAN card of the trust/NGO
Registration certificate (under Trust Act / Societies Act / Section 8)
Trust deed or Memorandum of Association
Address proof of registered office
List and ID proof of trustees or members
Financial statements for the last 3 years (if available)
Activity report and photos
Bank details
Darpan ID (if available)
Self-declaration for charitable use of funds

5. Step-by-Step Process of Registration

Visit the Income Tax e-filing portal
Go to e-File → Income Tax Forms → File Income Tax Forms
Select Form 10A for fresh registration
Choose both 12A & 80G together (recommended)
Fill out all required details carefully
Upload the necessary documents
Submit the form using DSC or EVC
The Commissioner of Income Tax (Exemptions) reviews your application
Once approved, you’ll receive registration certificates on your portal

6. Validity and Renewal Rules

The registration under both 12A and 80G is now valid for 5 years.
Before it expires, you’ll need to renew it by filing Form 10AB — ideally 6 months before the expiry date.

7. Mandatory Details Required for Renewal under 80G and 12A

When renewing under Form 10AB, you’ll have to provide a few key details and documents.
Here’s what’s important:

Basic Details

PAN, name, and registered address of the organization
Type of entity (Trust, Society, Section 8 Company)
Registration number and date

Registration and Activity Details

Copy of previous 12A and 80G certificates
Order number and date of earlier approval
Summary of major charitable activities done in the last 3 years

Nature of charitable objectives (education, medical relief, etc.)

Financial Information

Audited accounts for the last 3 years
Details of how funds were used for charitable work
Bank statements showing income and expenditure

Trustee and Management Details

Name, PAN, and Aadhaar of all trustees or directors
Contact details of authorized signatories

Compliance Declarations

Declaration that income is used only for charitable purposes
Confirmation that no part of income benefits trustees personally
Statement confirming compliance with Sections 11 and 12

Other Attachments

Proof of registered address
Darpan ID (if available)
Copy of amended trust deed, if changes were made
Recent activity report and photos

After filing Form 10AB, the department may ask for additional clarification before granting approval for the next 5 years.

8. Common Reasons for Rejection of Renewal

Delayed renewal application
Missing or unclear documents
Non-filing of ITR-7 or Form 10B
Misuse or diversion of funds

9. Key Compliance After Getting Registered

Once your NGO is registered, don’t forget these regular compliances:

File ITR-7 every year
File Form 10B (Audit Report) if required
Keep transparent books of accounts
Use at least 85% of income for charitable purposes
Maintain donation receipts properly

10. Renewal Process Summary (Form 10AB)

Form Name: 10AB
Purpose: Renewal or modification
Mode: Online on the Income Tax portal
Authority: Commissioner of Income Tax (Exemptions)
Validity: 5 years from approval date
Timeline: Apply at least 6 months before expiry

FAQs on Section 80G and 12A Registration

1.) What’s the main difference between 12A and 80G?

12A helps the NGO by exempting its income from tax.
80G helps donors by allowing them tax deductions on donations.

2.) Is it compulsory to get both?

12A is mandatory for exemption, but 80G is optional – though highly recommended.

3.) How long is the registration valid?

Both are valid for 5 years and must be renewed through Form 10AB.

4.) What’s the difference between Form 10A and 10AB?

Form 10A is for new registration, while Form 10AB is for renewal or modification.

5.) What if my NGO hasn’t started activities yet?

You can apply for provisional registration under Form 10A (valid for 3 years).

6.) Can I apply for both 12A and 80G together?

Yes, you can apply for both together while filing Form 10A.

7.) How much tax deduction do donors get under 80G?

It’s either 50% or 100% of the donation, depending on the approval type.

8.) Can I claim tax deduction for cash donations?

Only if the donation is below ₹2,000. Anything above must be through cheque or online transfer.

9.) What are the main reasons for rejection?

Sometimes, issues such as incomplete documents, mismatched details, non-filing of ITR or Form 10B, and moreover, an unclear charitable purpose can lead to rejection of registration.

10.) When should I apply for renewal?

At least 6 months before expiry of your current registration.

11.) What happens if I miss renewal?

Your registration will lapse and you’ll have to reapply from the start.

12.) What are the post-registration compliances?

File ITR-7, Form 10B, maintain proper records, and use 85% of income for charitable work.

13.) Who grants these registrations?

The Commissioner of Income Tax (Exemptions) reviews and approves your application.

14.) Can registration be cancelled?

Yes, if funds are misused or activities don’t match charitable purposes.

15.) Why should I get both registrations?

Because 12A helps your NGO save tax, and 80G helps your donors — a win-win situation for both.

Conclusion: –

Getting 80G and 12A registration is one of the most important steps for any NGO or charitable trust.
In addition, it provides several advantages such as:
● Tax benefits to your organization,
● Donation benefits to your donors, and
● Trust and credibility in the eyes of authorities and funders.

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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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