Running a non-governmental organisation (NGO) requires proper financial management, transparency and legal compliance. Whether an organisation works in education, healthcare, poverty relief, environmental protection or social welfare, receiving donations is essential for continuing its activities.
However, many NGOs find it difficult to attract donors because people often prefer to support organisations with proper legal registrations and tax approvals. This is where 12A and 80G Registration becomes important.
These registrations help eligible charitable organisations receive tax benefits and build trust among potential donors. If you operate a charitable trust, society or Section 8 company, understanding the registration process can help you manage your organisation more effectively.
What Is 12A Registration?
12A registration is the commonly used term for the tax registration of charitable and religious organisations under the Income Tax Act, 1961. It allows eligible organisations to claim income tax exemptions on qualifying income, subject to the applicable conditions.
Under the Income-tax Act, 2025, effective from 1 April 2026, the corresponding registration framework is covered under Section 332.
An organisation with the required registration can claim tax exemptions on eligible income used for charitable or religious purposes, provided it complies with the prescribed conditions.
Key benefits of 12A registration include:
Helps eligible NGOs claim income tax exemptions.
Supports better financial management.
Improves credibility among donors and funding organisations.
Helps charitable institutions manage donations and grants.
Supports long-term charitable activities.
What Is 80G Registration?
80G registration is an approval that allows eligible donors to claim a tax deduction on qualifying donations made to an approved charitable organisation.
Under the Income-tax Act, 2025, the corresponding approval framework is covered under Section 354, while the donor deduction is covered under Section 133.
For example, when an individual or company makes a donation to an eligible organisation with valid 80G approval, the donor may claim a deduction under the applicable tax rules.
The actual deduction depends on the type of donation, applicable limits and the donor's tax regime.
Benefits of 80G approval include:
Encourages individuals and businesses to make donations.
Helps NGOs attract more financial support.
Improves the organisation's credibility.
Makes eligible donations more attractive to donors.
Supports fundraising activities.
Difference Between 12A and 80G Registration
Although both registrations are important for NGOs, their purposes are different.
In simple terms, 12A registration focuses on the tax benefits available to the organisation, whereas 80G approval provides tax benefits to eligible donors.
Who Is Eligible for 12A and 80G Registration?
Eligible non-profit organisations working for charitable or religious purposes can apply, subject to the applicable legal requirements.
Common eligible organisational structures include:
Charitable Trusts: Organisations established to support education, healthcare, poverty relief and other charitable purposes.
Registered Societies: Groups formed for social welfare, education, cultural activities or charitable purposes.
Section 8 Companies: Companies incorporated under the Companies Act, 2013, to promote charitable and non-profit objectives.
Public Charitable Institutions: Organisations established to carry out activities that benefit the general public.
The organisation must have genuine charitable objectives, maintain proper financial records and use its income and assets in accordance with its stated objectives.
Documents Required for 12A and 80G Registration
Before applying, an NGO should arrange the necessary documents to support its application.
The commonly required documents include:
Trust Deed, Memorandum of Association (MOA) or other establishment document.
Registration certificate of the trust, society or Section 8 company.
PAN card of the organisation.
Address proof of the registered office.
Details of the managing trustees, directors or governing body members.
Bank account details and supporting bank documents.
Financial statements and accounts for the applicable previous years.
Details of charitable activities carried out by the organisation.
Copies of previous registration or approval orders, if applicable.
Details of amendments made to the organisation's objectives, if any.
Additional documents may be required depending on the organisation's legal structure, activities and application category.
12A and 80G Registration Process in India
The application process requires proper documentation and submission through the Income Tax Department's online portal.
Here are the general steps involved:
Step 1: Establish Your Organisation
First, register your organisation as a trust, society or Section 8 company under the applicable law.
Step 2: Obtain PAN and Prepare Documents
Ensure that the organisation has a PAN card, valid address proof, bank details and all relevant registration documents.
Step 3: Review Eligibility
Check whether the organisation's objectives and activities meet the applicable charitable requirements.
Step 4: Select the Applicable Application Form
From 1 April 2026, fresh applications are governed by the Income-tax Act, 2025. Form 104 is used for provisional registration or approval, while Form 105 is used for the applicable regular registration or approval applications.
Step 5: Submit the Online Application
Complete the relevant application on the Income Tax Department's e-filing portal and upload the required supporting documents.
Step 6: Respond to Department Queries
The department may request additional documents or clarification. The organisation should provide accurate information within the prescribed time.
Step 7: Receive the Registration or Approval Order
After reviewing the application, the competent authority may grant the applicable registration or approval, subject to the prescribed conditions.
Important Compliance After Registration
Obtaining registration or approval is not the end of the compliance process. NGOs must continue maintaining proper financial and legal records.
Some important responsibilities include:
Maintaining accurate books of account.
Using funds for the organisation's approved objectives.
Filing applicable income tax returns.
Completing audit requirements wherever applicable.
Reporting donations through the prescribed forms.
Issuing donation certificates to eligible donors.
Applying for renewal within the prescribed time.
Failure to comply with these requirements can affect the organisation's tax benefits and registration status.
Why Choose PSR Compliance for 12A and 80G Registration?
Applying for 12A and 80G registration involves understanding eligibility requirements, preparing documents, selecting the correct application category and following the applicable filing procedure.
PSR Compliance provides professional assistance to NGOs, charitable trusts, societies and Section 8 companies throughout the registration process.
Our support includes:
Eligibility and document review.
Application preparation and filing assistance.
Guidance on applicable registration requirements.
Assistance with responding to department queries.
Support with registration-related compliance.
Our aim is to help charitable organisations understand their compliance responsibilities and complete their registration process with proper documentation.
Frequently Asked Questions (FAQs)
1. What is the main purpose of 12A and 80G registration?
12A registration helps eligible charitable organisations claim income tax exemptions, while 80G approval allows eligible donors to claim tax deductions on qualifying donations.
2. Can a newly established NGO apply for 12A and 80G registration?
Yes. Newly established eligible NGOs can apply for provisional registration and approval under the applicable provisions.
3. Which organisations can apply for 12A and 80G registration?
Eligible charitable trusts, registered societies, Section 8 companies and other qualifying non-profit institutions can apply.
4. Is 80G registration mandatory for every NGO?
No. However, obtaining the applicable approval can help eligible NGOs attract donors who wish to claim tax deductions.
5. Which forms are applicable for fresh applications in 2026?
Under the Income-tax Act, 2025, Form 104 is used for provisional registration or approval, and Form 105 is used for applicable regular registration or approval applications.
Get Expert Assistance for 12A and 80G Registration!
12A and 80G registration plays an important role in the financial and legal management of charitable organisations in India. These registrations help eligible NGOs access tax benefits, improve donor confidence and support their social welfare activities.
If you are planning to establish an NGO or already operate a charitable organisation, understanding the applicable registration requirements is an important step towards long-term compliance.
PSR Compliance provides professional assistance with 12A and 80G registration, document preparation, application filing and compliance requirements.
Contact PSR Compliance Today!
Website: https://www.psrcompliance.com/12a-and-80g-registration
Phone: +91 8796104190
Email: support@psrcompliance.com
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