12A & 80G Combined Registration

12A and 80G are Income Tax registrations for charitable organisations. 12A exempts the NGO's own income from tax; 80G lets donors claim a deduction (usually 50%) for their donations. Since 2021 both are granted for a fixed period and must be renewed, and applications are filed online in Form 10A/10AB.

Who needs this: Registered trusts, societies and Section 8 companies with genuinely charitable objects, proper books of account, and activities that benefit the public rather than a private group.

Government portal: Income Tax e-filing portal (incometax.gov.in) — Form 10A (provisional) / 10AB (final & renewal).

Indicative fees: ₹8,000–₹20,000 professional fees; no government fee.

Timeline: 1–3 months (provisional registration is faster; final registration follows commencement of activities).

Documents required

Registration certificate (trust deed / society MoA / Section 8 CoI)
PAN of the organisation
Books of account and financial statements
List of trustees/members with PAN & Aadhaar
Details of activities and welfare programmes
Bank statements

Step-by-step process

Ensure the NGO is validly registered as a trust, society or Section 8 company
Obtain the organisation's PAN and maintain proper books of account
File Form 10A for provisional 12A and 80G registration (valid three years)
Commence charitable activities and keep documentary evidence
File Form 10AB for final registration at least six months before the provisional period ends
Receive the order granting 12A (income exemption) and 80G (donor deduction) for five years
Issue 80G donation receipts and file the annual Form 10BD statement of donations
Renew both registrations before expiry to avoid losing exemption

Penalty for non-compliance

If 12A lapses or is cancelled, the NGO loses exemption and its income — including accreted income — can be taxed at the maximum marginal rate under section 115TD.

12A exempts the institution; 80G benefits the donor

These are two separate approvals and are constantly confused. Registration under section 12A — now processed under 12AB — is what allows a charitable or religious trust, society or section 8 company to claim exemption on its own income. Approval under section 80G is what allows a person who donates to you to claim a deduction. Most institutions want both, and both are applied for through Form 10A or 10AB, but holding one confers nothing under the other.

Registration is time-limited now, and lapsing is easy

The regime moved from perpetual registration to approvals granted for a fixed period — provisional registration for a new institution and regular registration thereafter, each requiring renewal before expiry. This is the most important operational change, because an institution treating an old registration as permanent can find its exemption has quietly lapsed and its donors' deductions with it. Diarise the validity period and start the renewal well before the end date.

The 85% application test

Exemption depends on applying income to the objects, not merely on receiving it. Broadly, at least 85% of income must be applied to charitable purposes during the year, with the balance accumulable only on satisfying conditions and filing the prescribed declaration. Corpus donations have distinct treatment and must be invested in prescribed modes to keep their character. Failing the test converts what you assumed was exempt income into taxable income for that year.

Donor deductions are now matched against your filing

An institution with 80G approval must file a statement of donations received and issue donation certificates to donors, and the donor's claim is checked against that statement. An institution that does not file it causes every one of its donors' deductions to be questioned. Note also that cash donations above ₹2,000 attract no deduction at all, however genuine, and donations in kind are outside section 80G entirely — worth telling donors before they give.

Why applications get rejected

The recurring causes are objects drafted too broadly or with commercial elements; a trust deed or memorandum missing the required clauses on application of income and on the devolution of assets at dissolution; inconsistency between the deed, PAN and bank records; and activities already carried on that sit outside the stated objects. Fixing the constitutional document before applying is far cheaper than amending it later — particularly for a section 8 company, where amendment needs MCA approval. Foreign contributions require separate FCRA registration.

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Frequently asked questions

What is the difference between 12A and 80G?

12A exempts the NGO's own income from income tax. 80G is a benefit to donors — it lets them deduct 50% of their donation from taxable income. Most NGOs apply for both together.

Are 12A and 80G permanent?

No longer. Under the 2021 regime they are granted for five years (three years for provisional) and must be renewed via Form 10AB before expiry.

Can a newly formed NGO get 80G?

Yes — it can get provisional registration for three years even before substantial activity, then apply for regular five-year registration once activities begin.

What is Form 10BD?

An annual statement of donations received, which every 80G-registered NGO must file by 31 May. Donors can then see the donation reflected in their AIS and claim the deduction.

Does 80G give a 100% deduction?

Most NGOs offer a 50% deduction. 100% deduction is limited to specified government funds (e.g., PM CARES, National Defence Fund) notified under section 80G.