12A Registration

12A Registration is a one-time registration granted by the Income Tax Department under Section 12A (now governed under Section 12AB) of the Income Tax Act, 1961. It allows charitable trusts, societies, and Section 8 companies to claim full exemption on their income, provided the income is applied for charitable or religious purposes. Without this registration, the organisation's income is taxed at the applicable slab rates like any other entity.

The following organisations are eligible to apply for 12A Registration: Charitable trusts registered under the Indian Trusts Act, 1882 Societies registered under the Societies Registration Act, 1860 Section 8 Companies incorporated under the Companies Act, 2013 Religious trusts and institutions engaged in both religious and charitable activities The organisation must have clearly defined charitable or religious objectives as specified under Section 2(15) of the Income Tax Act.

Section 12A was the original provision for registration of charitable trusts and institutions. After the Finance Act, 2020 (effective from 1st April 2021), a new provision — Section 12AB — was introduced. Under the amended law, all new registrations and renewals are governed by Section 12AB, while the underlying eligibility criteria remain similar. Existing 12A registrations had to be re-registered under 12AB to remain valid.

Provisional Registration is granted to newly established organisations that have not yet commenced activities. It is valid for 3 years and is applied for via Form 10A. Regular Registration is granted after an organisation has been operating for at least one year and can demonstrate actual charitable activities. It is valid for 5 years and is applied for via Form 10AB. After the provisional period ends, the organisation must apply for regular registration to continue enjoying tax exemption.

Form 10A — Used by newly formed organisations applying for provisional registration under Section 12AB. Form 10AB — Used for conversion from provisional to regular registration, and for renewal of existing registrations.

The following documents are typically required: Trust Deed / Memorandum of Association (MOA) / Certificate of Incorporation PAN Card of the organisation Registration Certificate (Trust / Society / Section 8 Company) Aadhaar and PAN of all trustees, directors, or members Registered office address proof (utility bill or rent agreement) Bank account details and latest bank statement of the organisation Activity report or description of planned activities (for new entities) Audited financial statements (for organisations already operational) NOC from the landlord if the office premises are on rent

The processing timeline for 12A Registration depends on the completeness of documentation and the workload at the Commissioner of Income Tax (Exemptions) office. Typically, once the application is filed online via Form 10A or 10AB, a provisional order may be issued within 1 to 3 months. At Startup Dost, our team ensures that documents are accurately prepared and filed promptly to avoid unnecessary delays.

No. Under the current framework introduced by the Finance Act, 2020: Provisional registration is valid for 3 years (applied via Form 10A). Regular registration is valid for 5 years and must be renewed before expiry (applied via Form 10AB). Organisations must apply for renewal before the current registration expires to avoid any lapse in tax exemption status.

The main benefits of 12A Registration are: Full income tax exemption on income applied for charitable or religious purposes Prerequisite for 80G Registration, which enables donors to claim income tax deductions on donations Eligibility for government grants and CSR funds — most government departments and PSUs require 12A registration Prerequisite for FCRA Registration for receiving foreign contributions Enhanced credibility with donors, funders, and government bodies NGO DARPAN registration is facilitated alongside 12A for comprehensive compliance

Yes. A newly formed NGO, trust, or Section 8 company can apply for provisional 12A Registration even before commencing activities. The application is filed via Form 10A, and provisional registration is granted for 3 years, during which the organisation must demonstrate actual charitable activities before seeking regular registration.

Without 12A Registration, the income of the organisation — including donations received and surplus from activities — will be taxed at the applicable income tax slab rates. Additionally: The organisation will not be eligible to apply for 80G Registration (donor tax deduction benefit). It will not qualify for most government grants and ministry schemes. FCRA registration for foreign contributions will also not be possible. CSR-funding corporates may not consider the organisation eligible.

Yes. A Section 8 Company is incorporated as a non-profit entity, but incorporation alone does not grant income tax exemption. The Section 8 Company must separately obtain 12A Registration from the Income Tax Department to claim exemption on its income. Similarly, 80G Registration must be obtained separately for donors to avail tax deductions on donations.

The application for 12A Registration is filed online on the Income Tax e-Filing portal and is processed by the Commissioner of Income Tax (Exemptions) — CIT(E) — having jurisdiction over the registered office of the organisation. The CIT(E) may call for additional documents or schedule a hearing before granting the registration.

Yes. The Income Tax Department can cancel 12A Registration if: The organisation's activities are found to be non-charitable or commercial in nature. Income is not applied for charitable purposes. False or incorrect information was submitted at the time of application. The organisation fails to maintain proper books of accounts or does not file annual returns. Any activities are found to be in violation of conditions prescribed under the Income Tax Act.

After obtaining 12A Registration, the organisation must comply with the following annually: File Income Tax Return (ITR-7) before the due date (usually 31st October for organisations with audit requirements). Get accounts audited by a Chartered Accountant if the total income exceeds ₹2.5 lakh (before exemption). Apply at least 85% of income for charitable purposes in the same year, or carry it forward as per the Act. File Form 10B or 10BB (audit report) along with the ITR. Renew the registration via Form 10AB before the expiry of the current registration period.

An organisation can receive donations even without 12A Registration. However, without 12A Registration: The organisation's income, including donations, will be taxable. Donors will not be able to claim 80G tax deductions on their contributions. The organisation will not be considered legitimate by most institutional donors, government bodies, or CSR committees. In practice, 12A Registration is essential for any NGO that intends to solicit donations or apply for grants.

Yes, both applications can be filed simultaneously. In fact, it is advisable to apply for 12A and 80G Registration together, as the documents required are largely the same. At Startup Dost, we offer a combined package for 12A + 80G Registration to save time and cost for your organisation.

Startup Dost offers the following plans: Starter 12A (12A Registration only): ₹4,999 Dual Benefit (12A + 80G): ₹8,999 CSR Ready (12A + 80G + NGO DARPAN): ₹9,999 All plans include document preparation, form filing, expert consultation, and follow-up support. There are no hidden charges. You can get started at startupdost.in/services/12a-registration.

Yes. A religious trust must separately apply for 12A Registration to claim income tax exemption. However, purely religious trusts (whose income is applied solely for religious purposes and not for charitable purposes as defined under Section 2(15)) may have limited eligibility for certain exemptions. It is advisable to consult a professional to assess the nature of activities before applying. Startup Dost can help evaluate eligibility before proceeding.

Startup Dost provides complete end-to-end assistance for 12A Registration, including: Review and verification of the Trust Deed / MOA for compliance with Income Tax requirements Preparation and compilation of all required documents Online filing of Form 10A / Form 10AB on the Income Tax e-Filing portal Handling of queries raised by the Commissioner of Income Tax (Exemptions) Guidance on post-registration compliance and renewal timelines Combined assistance for 80G and NGO DARPAN registration Reach us at +91 8378870101 or info@startupdost.in, or visit startupdost.in.