12A & 80G Registration for NGOs in India
Overview of 12A & 80G Registration
Tax Pal Solutions provides comprehensive assistance for NGOs to obtain 12A and 80G registration, ensuring tax exemptions and enabling donors to claim deductions. These registrations strengthen an NGO’s credibility, improve fundraising potential, and facilitate access to government grants and CSR funding.
12A registration primarily benefits the NGO by exempting its income from tax, while 80G registration benefits donors by providing tax deductions for their contributions. Together, these registrations form the financial backbone of any charitable organization in India.
Key Benefits of 12A and 80G Registration
- Tax Exemption for NGO: 12A ensures that income generated by the NGO, including donations, is exempt from income tax.
- Encourages Donations: 80G registration offers donors 50–100% tax deductions, boosting fundraising potential.
- Access to Grants and CSR Funds: Eligibility for government schemes and corporate social responsibility contributions is enhanced.
- Credibility & Transparency: Registration signals legitimacy and adherence to legal standards, increasing trust among donors.
Differences Between 12A and 80G
| Feature | Section 12A Registration | Section 80G Registration |
|---|---|---|
| Primary Beneficiary | NGO (tax exemption on income) | Donors (tax deduction on contributions) |
| Purpose | Exempt NGO’s income from taxation | Incentivize donations with tax benefits |
| Dependency | Required for applying 80G | Can only be obtained after 12A |
| Nature | Mandatory for NGO tax status | Optional but highly beneficial for fundraising |
Eligibility Criteria
Basic Eligibility
- Established for charitable or religious purposes under Section 2(15) of the Income Tax Act.
- Operates on a non-profit basis, ensuring no personal gain for members.
- Maintains proper books of accounts and records of all financial transactions.
- Activities must be primarily charitable; commercial activities should be incidental.
- Properly registered as a Trust, Society, or Section 8 Company.
- Benefits no specific community or caste.
Specific Eligibility
| Entity Type | Eligibility Requirements |
|---|---|
| Public Charitable Trust | Registered under Indian Trusts Act or state law; Trust Deed specifies charitable objectives |
| Registered Society | Registered under Societies Registration Act; MoA & AoA define charitable objectives |
| Section 8 Company | Registered under Section 8 of Companies Act, 2013; profits applied to objectives; no dividends |
Documents Required for Registration
| Document | Purpose | Mandatory? |
|---|---|---|
| PAN Card of NGO | Official identification of NGO | Yes |
| Registration Certificate / Trust Deed / MoA & AoA | Proof of legal establishment | Yes |
| Proof of Office Address | Verify registered office | Yes |
| Financial Statements | Show financial health and donation management | Last 3 years |
| Details of Governing Body | Names, addresses, PANs, and roles | Yes |
| Details of Donors | List of donors with PAN (for 80G) | Conditional |
| Affidavit / Undertaking | Confirm genuineness of activities | Yes |
| Existing 12A/80G Certificates | For renewal or migration | Conditional |
| FCRA Certificate | If NGO receives foreign contributions | Conditional |
| Darpan Portal Registration Number | Verification of NGO on NITI Aayog portal | Required |
Step-by-Step Registration Process
- Document Preparation: Collect all required documents as per checklist.
- Login to Income Tax Portal: Use incometax.gov.in to access the e-filing section.
- Select Appropriate Form:
- Form 10A for provisional/new registration.
- Form 10AB for conversion, renewal, or modification.
- Fill Organization Details: Provide legal name, objectives, registration info, and activities.
- Attach Documents: Upload self-attested PDFs of all supporting documents.
- Submit Online with DSC/EVC: Complete submission with Digital Signature or Electronic Verification Code.
- Acknowledgment: Receive acknowledgment and track application status online.
- Scrutiny and Approval: Commissioner of Income Tax reviews documents and may request clarifications.
- Certificate Issuance: Upon approval, 12A and 80G certificates are issued with PAN, registration number, and validity details.
Application Forms & Timelines
| Category | Form | Timeline | Validity | Department Processing |
|---|---|---|---|---|
| Fresh Provisional | 10A | 1 month before previous year | 3 years | 1 month from application |
| Migration to 12AB | 10A | For existing approvals | 5 years | 3 months from application |
| Provisional to Regular | 10AB | 6 months before expiry | 5 years | 6 months from application |
| Renewal | 10AB | 6 months before expiry | 5–10 years* | 6 months from application |
| Modification of Objects | 10AB | 30 days from change | - | 6 months from application |
*For small trusts with annual income up to ₹5 crore, renewal may last 10 years.
Compliance After Registration
- Maintain accurate books of accounts and financial records.
- File ITR annually using Form ITR-7.
- Issue donation receipts and Form 10BE for 80G donations.
- File Form 10BD for the annual statement of donations.
Common Mistakes to Avoid
- Incomplete or inaccurate forms (10A/10AB).
- Mismatch between organizational objectives and documents.
- Poor financial documentation or lack of audited accounts.
- Missing PAN in NGO’s name or improper legal structure.
12A & 80G Certificate
Upon approval, NGOs receive official certificates confirming:
- 12A: Tax exemption on income.
- 80G: Donors can claim tax deductions.
How to Download Certificates:
- Login to the Income Tax e-Filing Portal.
- Navigate to 'Income Tax Forms' → Registration Section.
- Download 12A and 80G certificates in PDF format.
- Keep digital and printed copies for audits, grants, and compliance checks.
Certification
