When you’re running a charitable trust, society or section 8 company in India, two critical tax-compliance registrations often come into play: Section 12A (including 12AB/12AA) and Section 80G under the Income Tax Act, 1961. These registrations not only safeguard your non-profit status, but also boost your credibility, help attract donations and unlock tax benefits—for both the organisation and its donors.
Here’s a human-friendly guide to what 12A and 80G registration mean, why they matter, how to get them, and how your organisation can stay compliant.
What are 12A and 80G registrations?
12A/12AB registration is the mechanism by which a charitable or religious organisation is recognised by the tax authorities as eligible for income tax exemption for its surpluses (so long as they are applied to charitable purposes). Once registered, the organisation may not need to pay income tax on its “charitable income”.
80G registration, on the other hand, is the certification that enables donors to the organisation to claim tax deductions on their donations. In other words: 12A is mostly about the organisation’s tax-exemption; 80G is about the donor benefit.
Importantly: You typically must have 12A (or 12AB) registration before you apply for 80G registration—since to offer donor benefits, the organisation itself must be a bona fide exempt institution.
Why are these registrations so important?
For the organisation:
Being registered under 12A means you can retain more of your funds for your mission because you’re relieved from paying tax on applicable income.
It also increases your access to grants, government schemes and CSR funding—many funders require 12A registration.
It adds to your institutional credibility: donors, partners and stakeholders see you as a recognized and compliant entity.
For donors:
With a valid 80G certificate, individuals or companies who donate to your organisation can claim tax deductions on their donation amount. That makes your fundraising appeal stronger: donors are more likely to give when they optimise their tax position.
In turn, this enhances your fundraising potential and public trust.
In short: 12A helps you operate tax-efficiently, 80G helps you raise funds more effectively.
Eligibility & key conditions
Eligibility for 12A/12AB registration
Your entity must be legally constituted: for example as a trust, society, or a Section 8 company.
Your object(s) must be charitable or religious in nature. The legislation defines “charitable purpose” broadly (education, medical relief, relief of the poor, environment, etc.).
The entity must apply its income and assets solely for the charitable or religious objects, not for private profit or benefit of members.
Any business/trade activities must be incidental to your charitable purpose (if you carry on business, it must comply with conditions).
Eligibility for 80G registration
You must have 12A/12AB registration (or satisfy equivalent conditions).
Your governing documents must demonstrate charitable/religious purpose, and you must maintain proper books of account.
You may not distribute income or assets for non-charitable benefit, or engage chiefly in activities that primarily benefit a specific caste/creed (depending on category) unless allowed.
You must follow the procedural and compliance norms set by the tax authorities.
Documents & application process (step-by-step)
Here’s a simplified process to apply for 12A and then 80G registration:
Get your entity in order: Register your trust/society/Section 8 company under the relevant Act. Set up bank accounts, governing documents (trust deed/MOA/bye-laws), ensure your objects are charitable or religious.
Maintain proper records: Book-keeping, audited financial statements, activity reports, especially if you have prior years of activity.
Apply for 12A/12AB registration: Complete Form 10A (or other prescribed form) with the tax department. Attach required documents: PAN, registration certificate of entity, trust deed/MOA, audited accounts (if applicable), activity reports, address proof etc.
Wait for approval: The tax authority reviews your application. If approved, you receive registration and you become eligible for income-tax exemption (subject to conditions).
Apply for 80G registration: After 12A approval, apply using Form 10G (or the prescribed form) for 80G. Again attach relevant documents: 12A certificate, books, audited statements, donor-receipt norms, etc. If approved, your donors can claim tax deduction.
Stay compliant: Post registration you must file your returns (ITR-7 where applicable), maintain books, issue donation receipts with your registration number, ensure your surplus is applied to charitable objects, and if you carry on business it must remain incidental. Renew/validate when required.
The documents required typically include: PAN of organisation, trust deed/MOA, registration certificate of trust/society/section 8 company, address proof of registered office, audited accounts for last few years (if applicable), list of donors, bank statements, Form 10A/10G as applicable.
Key benefits of 12A & 80G registration
Income tax exemption: For 12A, the organisation’s surplus or income used for charitable purposes becomes exempt from tax (subject to conditions).
Donor tax deduction: For 80G, donors enjoy deduction from their taxable income on donations made to your organisation.
Increased funding access: Many government grants, CSR funds, large donors prefer/require that the organisation have 12A + 80G registration.
Credibility & trust: Registrations signal transparency, accountability and compliance. That enhances public trust, fundraising potential and institutional strength.
Legal clarity: Operating without these registrations can expose the organisation to tax risk, denial of donor benefits, and reputational damage.
Compliance & renewal: What you must know
Registration isn’t a “one-and-done” checklist item—ongoing compliance matters. Some key points:
File your income-tax return annually (e.g., ITR-7 for charities) even if you have NO taxable income.
Maintain audited accounts if your income crosses specified thresholds, and keep your books tidy and transparent.
Issue donation receipts to donors showing your registration number (for 80G) so they can claim deduction.
If your organisation engages in business/trade activity, ensure it is incidental to your charitable purpose and that you maintain separate books.
Be aware of renewal or revalidation requirements: recent amendments require registration under 12A/12AB and 80G to be validated after a fixed period (commonly five years) or follow the newly prescribed rules.
Failure to comply can lead to cancellation of registration, denial of tax benefits for donors, loss of credibility, and other regulatory issues.
How PSR Compliance Can Help You
Navigating 12A and 80G registration can feel complex—forms, deadlines, documentation, compliance norms—all need care. That’s where PSR Compliance steps in as your expert partner:
End-to-end service: From eligibility check, document preparation, application filing (Form 10A, 10G etc.), follow-up with tax authorities, to handing you the certificate.
Expert guidance: They specialise in NGO/trust/society compliance. They understand what the tax department expects, they help you avoid common pitfalls (missing documents, improper bookkeeping, delayed filings).
Time & hassle saving: Rather than you managing every detail, paperwork and regulatory communication, PSR Compliance handles it so you stay focused on your mission.
Transparent process & support: They provide updates on progress, help track your application status, support your compliance (renewals, filings) post registration.
Pan-India reach: Whether you’re in Ghaziabad, Delhi NCR, Uttar Pradesh or anywhere else, they offer services across India to trusts, societies and Section 8 companies requiring 12A & 80G.
For more information Visit : https://www.psrcompliance.com/12a-and-80g-registration
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