12A Registration
Section 12A of the Income Tax Act grants complete income tax exemption to NGOs on their surplus income. The foundational tax benefit every NGO must obtain after formation.
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What is 12A Registration?
Section 12A (now 12AB after amendments in April 2021) of the Income Tax Act, 1961 provides tax exemption to charitable trusts, societies, and Section 8 companies on their income, provided such income is applied for charitable or religious purposes. Without 12A registration, an NGO's surplus income is taxed like any corporate entity at applicable rates. Once registered, all income applied towards the stated objectives is fully exempt from income tax. The registration is granted by the Commissioner of Income Tax (Exemptions) — CIT(E) of the jurisdiction.
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Why 12A is the Most Important NGO Registration
Complete Tax Exemption
All surplus income applied to charitable purposes is 100% exempt from income tax.
Prerequisite for 80G
NGO must have 12A before it can apply for 80G (donor tax deduction benefit).
Unlock Government Grants
Most Central and State Government grants require 12A registration as a mandatory criterion.
CSR Funding Eligibility
Corporate CSR teams typically require 12A certificate before making contributions to NGOs.
Eligibility & Requirements
How to Apply for 12A Registration
From April 2021, 12A registration is filed online on the Income Tax portal as Form 10A (new application) or Form 10AB (renewal).
1Step 1: Obtain PAN for NGO
Ensure the NGO entity has a PAN. Log in to incometax.gov.in using the NGO's PAN and password.
2Step 2: File Form 10A on IT Portal
Select "Application for registration of charitable/religious trust or institution" and file Form 10A.
3Step 3: Upload Supporting Documents
Attach registration certificate, Trust Deed/MoA, PAN card, audited accounts (if available), and activity report.
4Step 4: Hearing by CIT(E)
CIT(E) may call the NGO for a hearing or ask for additional documents. Respond promptly within deadlines.
5Step 5: Provisional / Full Registration
New NGOs: Provisional 12A/12AB for 3 years. Operational NGOs: 5-year full registration.
Processing takes 30–45 days. New NGOs receive provisional 3-year 12A. Existing NGOs with strong activity record receive 5-year registration.
Documents Required
NGO Registration Proof
- Trust Deed / MoA and Bye-laws
- Registration Certificate (state / MCA)
- PAN Card of the NGO
Financial Documents
- Audited accounts (last 3 years if available)
- Income-expenditure statement
- Balance sheet
Activity Evidence
- Annual activity reports
- Photographs of charitable activities
- List of beneficiaries
- Expenditure on charitable activities
Post-Registration Compliance
5-Year Renewal
File Form 10AB for renewal at least 6 months before expiry of provisional/regular 12A registration.
Annual ITR Filing
File ITR-7 annually even after getting 12A exemption. Non-filing can lead to cancellation of 12A.
Restricted Activities
Income applied for personal benefit of trustees or for political activities forfeits the 12A exemption.
Form 10BD Filing
If 80G is also obtained, file Form 10BD (statement of donations) and issue Form 10BE certificates to donors annually.
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