12A Registration (Tax Exemption)

12A registration exempts the income of a charitable or religious trust, society or Section 8 company from income tax under the Income Tax Act. Since 2021 it is granted for five years (three for provisional) and must be renewed via Form 10A/10AB — without it, an NGO's entire surplus is taxable.

Who needs this: Registered trusts, societies and Section 8 companies with charitable/religious objects and proper books of account. The activities must be genuine and for public benefit.

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

Indicative fees: ₹5,000–₹15,000 professional fees; no government fee.

Timeline: 1–3 months.

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
Note on activities and objects

Step-by-step process

Ensure the NGO is validly registered and has a PAN
Maintain books of account and records of charitable activity
File Form 10A on the e-filing portal for provisional registration (valid three years)
Commence and document charitable activities
File Form 10AB for regular five-year registration before the provisional period ends
Receive the order granting 12A exemption
Apply for 80G separately so donors can claim deductions
Renew before expiry and file the annual return (ITR-7) to retain exemption

Penalty for non-compliance

Loss or cancellation of 12A makes the NGO's income — including accreted income — taxable at the maximum marginal rate under section 115TD.

Frequently asked questions

What does 12A registration do?

It exempts the income of a charitable/religious organisation from income tax, provided the income is applied to its objects. Without it, the NGO's surplus is taxed like any other entity.

Is 12A the same as 80G?

No. 12A exempts the NGO's own income; 80G gives the NGO's donors a tax deduction. Most NGOs apply for both together via Form 10A.

How long is 12A valid?

Five years for regular registration (three for provisional), after which it must be renewed through Form 10AB before expiry.

Can a newly registered NGO get 12A?

Yes, it can obtain provisional 12A registration for three years even before substantial activity, then convert to regular registration.

What return must a 12A-registered NGO file?

ITR-7 annually, along with an audit report in Form 10B/10BB if income exceeds the basic exemption limit before applying the exemption.