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.

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.