Registration under Section 12A of Income Tax Act

About This Product

It is a registration done by NGO to get an organization income exempted from Tax. All income shall not be taxable after 12A registration. If NGO does not get 12A Registration, income tax is payable on surplus during the year.


  • Application under section 12A of Income Tax Act
  • Providing you with Acknowledgement of Application made
  • Follow up Income Tax Department ( Out of pocket expenses extra)
  • reapplication 1 time in case of query raised by Income Tax Department

More About This Product

What is Section 12A?

Once the Trust Organization or NGO is established, they have to register as per Section 12A of the Income Tax Act for claiming exemption under Section 11 and 12 of the Income Tax Act. Section 12A enables non-profit entities such as Charitable Trusts, Non-Profit Organisation, Welfare Societies, Religious Institutions etc to claim full tax exemption as per Section 11 and 12 of the Income Tax Act, 1961. The non-profit entities do not work for profit, rather for the welfare of the people and the society, and are hence, non-profits. As their work is considered a selfless act and they essentially do the work that the government ought to do, they are provided with tax-exemptions.

If any non-profitable trust or NGO has not registered for 12A, their financial receipts or transactions would be considered as taxable.

Private or family trusts are not allowed such exemptions and cannot obtain 12A registration.

What are the benefits under Section 12A?

The donor can receive tax exemption on the donated amount if the trust or NGO where the donation is done is being registered with Section 80G. When the donor donates from their income towards the trust or NGO, they can get tax exemption on that amount. Section 12A registered trusts or NGOs can also receive multiple benefits under registration of Section 80G. By registering for Section 80G, trust and NGO tend to increase their value and respect due to which donors are more confidently able to donate large amounts towards them. Donors feel a sense of humanity and satisfaction by donating to such renowned trusts or NGOs. The government funds and grants are easily available to such trusts and NGOs which are registered with Section 12A and Section 80G. The donor can donate only the 50% of their total income in order to receive the tax exemption.

Information / Documents

The prior requirement for getting registration under section 80G is obtained registration under Section 12A.

The application shall be made in Form 10G to the Income Tax Commissioner. The application shall contain the following documents:

  1. Registration Certificate and MOA /Trust Deed
  2. NOC from Landlord (where the registered office is situated)
  3. Copy of PAN card of NGO
  4. Copy of Electricity Bill / House tax Receipt /Water Bill
  5. Evidence of welfare activities carried out & Progress Report since inception or last 3 years
  6. The statement of accounts, Balance Sheet since inception or last 3years
  7. List of donors along with their address and PAN
  8. List of governing body board of trustees members with their contact details
  9. Copy of registration granted under section 12A or copy of notification issued under section 10(23)or section 10(23C)

The registration process may take time up to 3 to 4 months. The Registration done once is valid for lifetime.

Other Requirements

Can file application after 2 Years of NGO Starts its Operation.

Photos of activities done by NGO.

Resolution for the 12A, 80G Registration

Frequently Asked Questions

What are the terms and guidelines for NGOs and Charitable Organisations?

Even if the trusts and NGOs are registered, there are some terms and guidelines related to Section 12A and Section 80G. These are:

  • If charitable organizations registered as NGO are working for a specific caste or community, then the NGO will be disqualified from the exemption of tax.
  • If the NGO or trust has their other business through which they have other income then they are not eligible for the exemption.
  • The trusts and NGOs should only accept cash donations till an amount of Rs 2,000 from the donors.
  • Amounts exceeding Rs 2000 should be done through electronic transfer or through cheque.
  • These trusts and NGOs should regularly maintain account books and receipts otherwise will be non-eligible for the exemption.
  • The NGO should also be registered under the Societies Registration Act of 1860 or Section 8 Company Registration Act of 2013.

The grants received from the government and other agencies are beneficial for such trusts and organizations. Such grants can be used for the infrastructure development, basic facilities, health and hygiene, and overall welfare of the society. These are registered under Section 12A which exempts them from paying income tax.

  • The charitable trust or NGO should spend more than 85% of their income on welfare or religious purposes in order to get tax exemptions.
  • They should be registered with Section 12A and Section 80G in order to gain exemption from tax on the generated income.
  • The main expenditure should be on the education, medical, health and sanitation, and general relief of the needy. Other practices include conservation of environment, history and arts, improving standards of public utilities and general awareness.

Sections 12A and 80G are the most appreciable Sections in the Income Tax Act which directly and indirectly provide a lot of benefits to society. The only requirement that trusts and NGOs should fulfil is that they should follow the guidelines provided in these Sections. Various trusts and NGOs which are registered under these Sections provide maximum overall benefits to the economic development of the country through their constant social welfare. It is necessary for trusts, NGOs, and societies involved in religious or social welfare work to get themselves registered under Section 12A of the Income Tax Act by the Department of Income Tax, Government of India.