What is Section 12A Registration?

Section 12A of the Income Tax Act grants income tax exemption to charitable organizations — NGOs, Trusts, Societies and Section 8 Companies — on all income applied towards their charitable or religious objects. The Finance Act 2020 renamed the registration to Section 12AB and introduced a new provisional-to-regular system effective from April 2021.

Without 12A Registration

Entire surplus income taxed at 30% + surcharge
Cannot apply for 80G registration
Cannot receive CSR funds from companies
Less credibility with government and donors
FCRA registration also requires 12A

With 12A Registration

Income applied to charitable purposes is tax-exempt
Accumulate up to 15% of income without tax
Eligible to apply for 80G registration
Eligible to receive CSR donations from companies
Higher credibility for grants and foreign funding

Section 12A vs 12AA vs 12AB

The law on registration has evolved significantly. Understanding which section applies to your organization is important:

Section	Period	Status	Action Required
Section 12A	Before April 2021	Transitional / Expired	Must re-register under 12AB
Section 12AA	2010–2020	Superseded by 12AB	Existing registrations migrated to 12AB
Section 12AB	From April 2021	Current law	Apply via Form 10A (new) / Form 10AB (renewal)
Provisional 12AB	New NGOs	Valid 3 years	Apply for regular 12AB before expiry via Form 10AB

Eligible Organizations

The following types of organizations can apply for 12A/12AB registration, provided they are established for charitable or religious purposes and do not distribute profits:

🤲

Charitable Trusts

Registered under Pondicherry/Indian Trusts Act

🏛️

Registered Societies

Under Societies Registration Act

🏢

Section 8 Companies

Non-profit companies under Companies Act 2013

🕌

Religious Organizations

Temples, churches, mosques with charitable objects

🎓

Educational Institutions

Schools, colleges and training institutes (not-for-profit)

🏥

Hospitals & Clinics

Charitable hospitals providing free/subsidized treatment

Documents Required for 12A Registration

Constitutional & Identity Documents

Trust Deed / Memorandum of Association & Rules
Certificate of Incorporation / Registration
PAN Card of the organization
PAN and Aadhaar of all trustees / directors / managing committee members
Address proof of registered office (utility bill or property document)

Financial & Activity Documents

Audited balance sheets and income & expenditure accounts (3 years or since inception)
Bank account statements (last 12 months)
Income Tax Returns filed (if previously required)
Annual report / activity report showing charitable work undertaken
Details of any property owned by the organization

Note for New Organizations: If your NGO/Trust was just registered and has no prior activity, you can submit projected activities and the trust deed/MOA as the primary documents. A provisional 12A registration valid for 3 years will be granted.

Registration Process — Form 10A & Form 10AB

1

Determine Registration Type

New organizations applying for the first time use Form 10A and will receive a provisional 12AB registration valid for 3 years. Organizations applying for regular/renewal registration (after 3 years of provisional registration or migrating from old 12A/12AA) use Form 10AB.

2

Prepare Document Package

Compile all required documents — trust deed/MOA, PAN, registration certificate, audited accounts (or projected activities for new organizations), activity reports and governing body details. All documents must be digitally signed or self-attested.

3

File on Income Tax Portal

Submit Form 10A or Form 10AB electronically through the Income Tax e-filing portal (incometax.gov.in) under the organization's PAN-based login. The application is filed under "Income Tax Forms" → "File Income Tax Forms." Attach all scanned documents in PDF format.

4

Verification & Inquiry by CIT(E)

The Principal Commissioner or Commissioner of Income Tax (Exemptions) — CIT(E) — reviews the application. For Form 10AB (regular registration), the CIT(E) may call for a hearing or additional documents to verify that the organization genuinely carries on charitable activities and complies with conditions.

5

Grant of Registration Certificate

On satisfaction, the CIT(E) issues the 12AB registration order with a Unique Registration Number (URN). For Form 10A (new organizations), registration is typically granted within 1 month as provisional. For Form 10AB (regular), grant is within 6 months. The registration certificate is available for download from the IT portal.

Important Conditions & Compliance After 12A

Compliance	Requirement	Due Date
ITR Filing	File ITR-7 annually even if income is exempt	31st October (if audit applicable); 31st July otherwise
Audit (Section 12A)	Mandatory CA audit if income exceeds Rs. 5 lakhs in a year	Before filing ITR-7
15% Accumulation	Up to 15% of income may be accumulated (not spent) without losing exemption	N/A — ongoing
Form 9A / Form 10	If applying more than 15% income towards objects in later years (Form 9A) or accumulating under Section 11(2) (Form 10)	Before filing ITR-7
Renewal	Apply for regular 12AB via Form 10AB at least 6 months before provisional registration expires	Before expiry of 3-year provisional period
Annual Statement	File Form 10BD (statement of donations received with donor details) and Form 10BE (donation certificate to donors) if organization also has 80G	31st May each year

Frequently Asked Questions

Can a new NGO apply for 12A registration immediately after formation?

Yes. A newly registered Trust, Society or Section 8 Company can apply for 12A registration immediately after obtaining its PAN. The Income Tax Department will grant a provisional 12AB registration valid for 3 years through Form 10A. There is no requirement to show any prior charitable activity at the provisional registration stage — the objects of the trust deed or MOA are sufficient. After 3 years, you must apply for regular 12AB registration via Form 10AB, at which point actual activities and accounts will be scrutinized.

What happens if an NGO does not renew its 12A registration on time?

If the 5-year regular registration (or 3-year provisional registration) lapses without renewal, the organization loses its tax-exempt status from the date of expiry. All income received after expiry becomes taxable at the maximum marginal rate (30% + surcharge). The organization must apply afresh via Form 10AB and will only regain exemption after the new registration is granted — income during the gap period remains taxable. It is therefore critical to file Form 10AB at least 6 months before expiry.

Can a Trust that uses income for both charitable and non-charitable purposes get 12A registration?

Under Section 13 of the Income Tax Act, if any part of the income or property of the Trust benefits a "specified person" (trustees and their relatives) or is applied for non-charitable purposes, the entire exemption under 12A can be cancelled for that year. A mixed-purpose trust where non-charitable activities are significant will not qualify for 12A at all. If non-charitable activities form only an incidental or minor part, the Trust may still qualify but must maintain strict separation of accounts. Legal advice before applying is strongly recommended for such organizations.

Is 12A the same as FCRA registration?

No. Section 12A registration deals with income tax exemption on domestic surplus income under the Income Tax Act, 1961. FCRA (Foreign Contribution Regulation Act) registration is a separate registration required to receive money or materials from foreign sources — individuals, institutions or governments outside India. An NGO that wants to receive both domestic donations (with 80G tax benefits for donors) and foreign contributions needs both 12A/12AB and FCRA registrations independently. FCRA is administered by the Ministry of Home Affairs, not the Income Tax Department.

Section 12A Registration for NGO & Trust in Pondicherry