For non‑profit organisations in India, ensuring proper compliance with tax laws is crucial—not just to operate legally, but also to enable trust and support from donors. The 12A and 80G registrations are two key certifications under the Indian Income Tax Act that NGOs, charitable trusts, societies, and Section 8 companies aim for. Let’s explore what they are, why they matter, and step‑by‑step how to get them.
What Is 12A and 80G Registration?
First, let’s understand what these registrations mean.
12A registration refers to registration under Section 12A of the Income Tax Act, 1961. When an NGO obtains this, its income from charitable activities becomes exempt from income tax. That means donations received, grants, gifts, etc., used for its stated charitable objective are not taxed.
80G registration is another provision of the Income Tax Act (Section 80G). This allows people or entities who donate to the NGO to get tax deductions on their donations. In simple terms, donors get a benefit in their own tax returns when they contribute to a certified organisation under 80G.
Together, getting both 12A and 80G registration makes an NGO more credible, appealing to donors, and compliant with legal norms.
Benefits of 12A and 80G Registration
Why should an NGO bother with 12A & 80G registration?
Tax Exemption for NGO’s Income
With 12A registration in place, the NGO doesn’t need to pay tax on its income from donations, grants, etc., as long as those incomes are used for charitable purposes. This frees up more resources to be used for the cause.Better Donor Confidence & More Donations
When donors know that an organisation has 80G registration, they are more likely to give. Because the donor gets a deduction, contributing becomes more attractive. This can help NGOs raise more funds.Eligibility for Grants and Government Aid
Many government schemes, corporate CSR programs, or foreign funding bodies require NGOs to have 12A/80G registrations before offering grants. Without these, many opportunities remain closed.Transparency & Accountability
The process of obtaining these registrations involves maintaining proper books, audited statements, project reports, etc. That imposes discipline, which in turn boosts trust among stakeholders.
Requirements & Eligibility for 12A and 80G Registration
Before applying, NGOs must ensure they meet certain criteria. Here are the essential requirements:
The organisation must be a trust, society or a Section 8 company (i.e. formed under Companies Act for non‑profit/charitable purpose).
Its objects must be exclusively charitable or religious (or both), not for profit. No part of its income or assets should inure to any individual.
It should be properly registered under relevant laws (e.g. as a Trust Deed, or Society under Societies Registration Act, or Section 8 company under Companies Act).
It must maintain proper books of account, financial statements, audited, and be transparent in how funds are used.
The organisation should not engage in political activities. The purposes should not include supporting a political party or campaign.
For 80G, it’s usually required that 12A registration is already in place. Also, there are requirements about how donor funds are used, how accounts are maintained, etc.
Documents Required for 12A and 80G Registration
You’ll need several documents to support the application. These vary slightly by state and organisation type, but generally include:
PAN card of the NGO.
Registration certificate of the NGO (Trust Deed, Society registration certificate, or Section 8 company certificate).
Trust Deed or Memorandum of Association / Bye‑laws as applicable.
Form 10A (for 12A registration).
Form 10G (for 80G registration).
Proof of registered address (utility bills etc.).
Books of accounts for last three years (if the NGO has been in operation).
Bank statements for the last three years (showing transactions).
Activity / progress / project reports for the last three years.
List of donors, with contacts (if available).
Gathering these ahead of time helps smooth out the registration process.
12A & 80G Registration Process Online
Here is a step‑by‑step guide to how to apply for 80G and 12A registration via the online method (or partially online, depending on jurisdiction):
Set up / Form the NGO
First, legally register your organisation as a trust, society or Section 8 company. Choose the legal structure appropriate for your mission. Get your registration certificate, trust deed etc. This is the foundation.Collect all required documents
As listed above: trust deed or MOA / bye‐laws, PAN, address proof, financials, etc. If your NGO has been operation for some years, gather audited accounts, reports, and donor lists.Obtain 12A registration
Fill out Form 10A (for 12A).
Submit this form along with supporting documents to the Income Tax Department / authority. Many states or the Central Government’s tax portal provide for online submission.
Wait for review. The authorities will check whether your objects are charitable, your books of account, your legal registration, etc.
Apply for 80G registration
Only after or while having 12A registration in place, fill out Form 10G (for 80G).
Submit with the documents required specifically for 80G (financial history, proof of how donations will be used, etc.).
Review & Verification by Tax Authorities
The tax authority examines the application. They may ask questions, request clarifications, call for additional documentation or even a field/physical verification in some cases.
They ensure that the NGO is genuine, its accounts are transparent, and the operations match up with the charitable objects declared.
Approval / Notification
If everything is in order, the NGO receives registration certificates under Section 12A and/or Section 80G.
The NGO is then exempt from paying taxes on charitable income (12A), and donors can deduct the eligible donations (80G).
Renewal and Compliance (if applicable)
Some registrations (especially 80G) may have validity periods, and need renewal.
Maintain proper financial records, audit accounts, submit reports etc., so your registration stays valid and can be renewed without trouble.
How to Apply for 80G and 12A — Tips and Common Issues
Here are some practical tips to help you apply successfully, and avoid common pitfalls:
Always ensure your objects in trust deed / MOA clearly mention the charitable / religious / educational / health / poverty relief etc., activities. Vague or broad statements often lead to delays or denials.
Accurate and audited financial statements matter. If your NGO has been operating without meticulous accounting, this step can cause problems. It’s better to get your accounts audited in advance.
For online submissions, double check that all scanned documents are clear, properly signed/supported, and in the format required (pdf, size, etc.).
Keep a checklist of all documents required and cross‑verify before submitting. Missing any major document can lead to rejection.
Follow up with the tax department if there’s delay; sometimes authorities ask for clarifications. Respond fully and promptly.
Once 80G/12A certificates are granted, publicise them. Many donors check for these before giving. Display it on your website, brochures etc.
What Happens If You Don’t Register Under 12A or 80G
It’s worth understanding what you miss out on if your NGO doesn’t have these registrations:
Without 12A, your income may be liable for tax. What should have been charitable income (donations etc.) could be taxed, reducing the funds you have for your mission.
Without 80G, donors will not be able to claim tax deductions for their contributions to you. This can discourage big donors or institutions, lowering your potential donations.
Less credibility: in the eyes of government, grant agencies, CSR funders, etc., lack of proper registration may appear unprofessional or risky.
Summary: 12A and 80G Registration Made Simple
To sum up:
What is 12A and 80G registration?
12A gives tax‑exemption for your NGO’s income; 80G allows donors to get tax deductions.Documents required?
PAN, registration certificate, trust deed / MOA, Form 10A & 10G, financial statements, donor list, bank statements etc.Process (online or partly online):
Form your NGO → gather documents → apply via Form 10A for 12A → then apply with Form 10G for 80G → await review → get certificates.Why is it important?
Legal compliance, better funding, donor trust, eligibility for grants, transparency.
If you are planning to start or run an NGO or charity, taking the time to ensure your organisation is properly registered under Sections 12A & 80G is well worth the effort.
For more information visit : https://www.psrcompliance.com/12a-and-80g-registration
