Overview
12A Registration is a one-time registration granted by the Income Tax Department under Section 12A of the Income Tax Act, 1961. It enables Non-Governmental Organisations (NGOs), charitable trusts, Section 8 companies, and societies to claim full exemption on their income, provided the income is applied for charitable or religious purposes. Without 12A registration, the income of the organisation is taxed at the applicable slab rates.
At Startup Dost, we provide end-to-end assistance for obtaining 12A registration — from documentation to filing on the Income Tax e-Filing portal and liaising with the Commissioner of Income Tax (Exemptions).
What is 12A Registration?
Section 12A of the Income Tax Act, 1961, provides a mechanism for trusts, societies, and Section 8 companies engaged in charitable or religious activities to register with the Income Tax Department and claim exemption on their income. Once registered, the entire income of the organisation — including donations received, grants, and surplus from charitable activities — is exempt from income tax, subject to conditions prescribed under the Act.
Post the amendments introduced by the Finance Act, 2020 (effective from 1st April 2021), the registration process has been shifted to an online mechanism through Form 10A (for new registrations) and Form 10AB (for renewal or conversion of existing registrations). The registration is initially granted as provisional for a period of 5 years and must be renewed thereafter.
Key Legal Provisions
- Section 12A – Registration of trusts, societies, and Section 8 companies for income tax exemption
- Section 12AB – Procedure for fresh registration, renewal, and provisional registration (post-2021 amendment)
- Form 10A – Application for provisional registration (new entities)
- Form 10AB – Application for regular/renewal registration
- Section 11 – Exemption of income from property held for charitable purposes
Why is 12A Registration Important?
- Complete Tax Exemption: Income applied for charitable purposes is fully exempt from income tax.
- Prerequisite for 80G Registration: Without 12A, an organisation cannot apply for 80G registration, which allows donors to claim tax deductions.
- Eligibility for Government Grants: Most government departments, CSR programmes, and donor agencies require valid 12A registration before disbursing grants.
- Credibility and Trust: A 12A-registered entity is perceived as a genuine charitable organisation.
- FCRA Eligibility: 12A registration is a prerequisite for applying for FCRA registration to receive foreign contributions.
Who Needs 12A Registration?
- Charitable Trusts – Trusts formed under the Indian Trusts Act, 1882
- Societies – Organisations registered under the Societies Registration Act, 1860
- Section 8 Companies – Companies incorporated under Section 8 of the Companies Act, 2013
- Religious Trusts and Institutions – Entities engaged in religious activities with charitable work
Documents Required for 12A Registration
- Trust Deed / Memorandum of Association / Certificate of Incorporation
- PAN Card of the organisation
- Registration Certificate (Trust / Society / Section 8 Company)
- Aadhaar and PAN of all trustees, members, or directors
- Address proof of the registered office (utility bill / rent agreement)
- Bank account details and bank statement of the organisation
- Activity report or details of planned activities (for new entities)
- Audited financial statements (if the entity has been in operation)
- List of beneficiaries or target group details
- NOC from the landlord (if the office is on rent)
Process for 12A Registration
Step 1: Preparation of Documents
Gather all required documents and ensure the trust deed or MOA clearly mentions charitable objectives as defined under Section 2(15) of the Income Tax Act.
Step 2: Filing Form 10A / 10AB
The application is filed online on the Income Tax e-Filing portal. Form 10A is used for provisional registration, while Form 10AB is used for regular or renewal registration.
Step 3: Submission to Commissioner of Income Tax (Exemptions)
The application is routed to the jurisdictional Commissioner for review and verification.
Step 4: Examination and Query (if any)
The Commissioner may raise queries or seek additional documents. Startup Dost handles all queries and responses on your behalf.
Step 5: Grant of Registration
Upon satisfactory review, the Commissioner grants the 12A registration certificate with a unique registration number (URN). Provisional registration is valid for 5 years.
Benefits of Choosing Startup Dost
- Expert Guidance: Experienced CAs and compliance professionals specialising in NGO registrations.
- End-to-End Support: From drafting the trust deed to filing the application and responding to department queries.
- Transparent Pricing: No hidden charges.
- Quick Turnaround: Timely filing and follow-up to minimise delays.
- Post-Registration Compliance: Guidance on annual compliance, audit requirements, and renewal timelines.
- Pan-India Service: Fully digital process serving clients across all states.
Get your 12A Registration done hassle-free with Startup Dost. Fill in the enquiry form below and our team will connect with you within 24 hours.
