80G & 12A Registration
80G & 12A Registration
At Whytax, we specialize in helping NGOs, charitable trusts, and non-profit organizations obtain 12A and 80G registrations – two crucial approvals under the Income Tax Act of India. These registrations not only provide tax exemption benefits to the organization but also offer tax deduction advantages to its donors, boosting credibility and donor engagement.
Whether you are starting a new non-profit or running an existing one, we offer end-to-end support for fresh registration, revalidation, and compliance management under Sections 12A and 80G.
What is 80G & 12A Registration?
12A Registration allows an NGO or non-profit organization to get an exemption from paying income tax on its surplus income, provided the funds are used for charitable purposes.
80G Registration enables donors to claim deductions on their donations to the registered organization, making your NGO more attractive to potential contributors.
Who Can Apply for 12A and 80G Registration?
The following entities are eligible:
• Charitable Trusts
• Societies
• Non-Profit Companies under Section 8
• NGOs engaged in religious, educational, medical, social, and environmental activities
Conditions to be Fulfilled Under Section 80G
• The organization must not promote religious or business activity.
• Separate accounts must be maintained for donations.
• Receipts must be issued for donations.
• The organization must be registered under 12A.
Documents Required for Form 10A/10AB
Our team helps compile and file the necessary documentation, including:
• PAN of the organization
• Registration certificate (Trust deed/Society Registration)
• Financials of last 3 years (if applicable)
• Activity report
• Details of trustees/directors
• Utility bills of registered office
• Aadhaar & PAN of key persons
Issuance of Certificate
Once approved:
• The 12A certificate confirms exemption from income tax.
• The 80G certificate allows donors to claim 50% (sometimes 100%) deduction on donations.
Validity of 12A and 80G Registration
• Initially granted for 5 years
• Must be renewed before expiry
• Provisional registration available for newly formed NGOs for 3 years
Penal Provisions
Failure to register or comply with provisions can lead to:
• Denial of tax exemption
• Rejection of 80G claims by donors
• Cancellation of registrations
• Penalties under income tax laws
FAQs – 80G and 12A Registration
1. What is 12A registration?
12A registration is granted to NGOs, charitable trusts, and non-profit organizations, allowing them to be exempt from paying income tax on the surplus income used for charitable or religious purposes.
2. What is 80G registration?
80G registration enables donors to claim a tax deduction of 50% or 100% on the donation amount they contribute to registered NGOs or charitable institutions under Section 80G of the Income Tax Act.
3. Is it mandatory to get both 12A and 80G registrations?
No, it is not mandatory to have both. However:
• 12A is essential to claim income tax exemption for the NGO.
• 80G is needed if you want to offer tax benefits to your donors.
Most organizations opt for both to avail all advantages.
4. Who is eligible to apply for 12A and 80G registrations?
The following entities are eligible:
• Charitable and Religious Trusts
• Non-Profit Companies (Section 8)
• Societies registered under Societies Registration Act
• Any other organization with a charitable purpose and non-profit motive
5. Can newly formed NGOs apply for 12A and 80G?
Yes. Newly registered NGOs can apply for provisional registration under both 12A and 80G. This is valid for 3 years, after which they must apply for final registration.
6. What are the forms used for registration?
• Form 10A: Used for fresh registration under 12A and 80G.
• Form 10AB: Used for revalidation, modification, or conversion from provisional to final registration.
7. What is the validity period of 12A and 80G registration?
• Provisional Registration: 3 years
• Final Registration: 5 years (can be renewed)
• Renewal must be done at least 6 months before expiry.
8. What are the tax benefits for donors under Section 80G?
Donors can claim:
• 50% or 100% deduction depending on the type of organization and donation
• Deductions are subject to qualifying limits in some cases
9. Is 12A/80G registration valid across India?
Yes. These registrations are valid nationwide and are recognized by the Income Tax Department of India, regardless of the NGO’s state of operation.
10. Can 12A or 80G registration be cancelled?
Yes. If the organization:
• Violates the conditions of registration
• Uses funds for non-charitable purposes
• Fails to comply with return filings or activity reporting
The Income Tax Department may cancel the registration.
11. Can foreign donations be received with 12A and 80G registration?
While 12A and 80G are not sufficient on their own to receive foreign donations, they are often prerequisites for applying for FCRA registration, which is mandatory for receiving funds from abroad.
12. What is the time frame for getting the 12A and 80G certificates?
• Generally, the processing takes 2–3 months, depending on the completeness of documents and response from authorities.
• Provisional registrations are usually processed faster.
13. What happens if my old 12A/80G certificate is not revalidated?
If not revalidated under the new rules (post-2021 changes), the old registration will be considered invalid, and your organization may lose:
• Tax exemption benefits
• Donor deduction eligibility
• CSR and FCRA funding opportunities
14. Can I file both 12A and 80G applications together?
Yes. You can and should file them together using the combined online process provided by the Income Tax portal.
15. Do I need to renew my registration after 5 years?
Yes. The renewed certificate will be valid for another 5 years, subject to continued compliance and verification.
