Generally speaking, in India, the charitable bodies Trusts, Societies, and Section 8 Companies are registered with the aim to service the nation through social welfare, education, healthcare, religious, and other charitable activities, etc. For this, they need to obtain 12A and 80G Registration under the ITA 1961.

registration enables NGOs in India to get income tax exemption as well as to attract tax-deductible donations. 12A enables an NGO to save income tax on its income, while 80G allows the NGO to get tax deduction for the donations received. In order to seek both 12A and 80G registrations, the NGO has to register as a charitable organization with audited accounts and without profit motive. These files include the NGO PAN, trust deeds, and financial statements. The NGO seeking both 12A and 80G has to fill out forms 10A and 10G and get the 12A and 80G registrations done in 30-90 days with 3-year provisional validity. NGO Experts guides the entire process with expert legal assistance.

Advantages of 12A and 80G Registration

12A Registration Advantages

1. Income Tax Exemption

When an NGO has 12A registration, its extra income does not get taxed as long as it is spent on charitable work.

2. Legal Recognition

12A status gives an NGO official recognition under the Income Tax Act. Basically, it is proof you are legit.

3. Financial Sustainability

With the tax savings, NGOs can actually use more of their money for their core mission instead of handing it over to the government.

4. Eligibility for Grants

most grants whether from the government or private foundations ask for 12A registration before they even consider your application.

5. Improved Credibility

Donors, institutions, and stakeholders are just more likely to trust an NGO that is registered under 12A.

80G Registration Advantages

1. Tax Benefit to Donors

People who contribute to your NGO can claim a tax deduction under Section 80G. That is clear incentive.

2. Increased Fundraising

Those tax breaks encourage both individuals and companies to give more.

3. More Corporate CSR

Business Organizations prefer donating to those NGOs with 80G approval, especially for their CSR requirements.

4. Better Public Image

Approval under 80G makes your organization appear more trustworthy and transparent.

5. Competitive Advantage

Let’s be honest NGOs with 80G are just more appealing to donors compared to those without it.

Why Both 12A and 80G Together Make a Difference

When an NGO has both 12A and 80G registrations, it is not just about saving on taxes. You gain credibility, unlock more funding opportunities, and attract bigger, more consistent support from both individuals and corporations. It is a big step up for any organization aiming to make a real impact.

Types of 12A and 80G registration

1.Provisional 12A Registration

This one is for brand new NGOs maybe you have just set up your Trust, Society, or Section 8 Company, but you have not really kicked off your work yet. With provisional 12A, you get three years to start things up. You can run your operations, and even go after grants and donations while you are getting established. Once you really get going and have some activities to show, you will need to switch over to regular registration.

2. Regular (Final) 12A Registration

If your NGO is already up and running, with actual charitable work and some financial records to back it up, you go for regular 12A registration. You will have to submit reports and paperwork, but once you are through, your registration lasts five years before you have to renew. This is for organizations with a real track record.

80G Registration Types

1. Provisional 80G Registration

New NGOs can also grab provisional 80G status. You get a three-year window, during which you can give out donation receipts that let your donors claim tax deductions. But remember, once you start real activities, you will need to upgrade to regular 80G.

2. Regular (Final) 80G Registration

This one goes to NGOs who have already proved they are doing charitable work. Registration lasts five years, and it lets your donors claim tax benefits under Section 80G.

Step by Step Process 12A and 80G Registration

Step 1: Set Up Your Legal Entity

First things first your organization needs to be officially registered. You can do this as a Public Charitable Trust, a Registered Society, or a Section 8 Company. You have to register under the Trust Act, Societies Act, or Companies Act. No shortcuts here.

Step 2: Get a PAN for Your NGO

Now, apply for a PAN (Permanent Account Number) in your NGO’s name. You can-not file for 12A or 80G without it.

Step 3: Gather Your Documents

Here is what you will need on hand:

ü Registration Certificate (Trust Deed, MOA, AOA, or Rules & Regulations)

ü The NGO’s PAN Card

ü Proof of your registered office address

ü KYC for all trustees or directors

ü Activity report (if your NGO already exists)

ü Financial statements (if needed)

Step 4: Log In-to the Income Tax Portal

Head over to the official Income Tax e-filing site. Log in using your NGO’s PAN. For a new or provisional registration, pick Form 10A. For a regular or renewal registration, go with Form 10AB.

Step 5: Fill Out the Online Application

Enter all the details your NGO’s legal status, main objectives, information about trustees or directors, what your organization actually does, and where else you are registered. Upload the required document as PDF for online registration.

Step 6: Digital Verification

You have need to verify your application digitally. Use a Digital Signature Certificate (DSC) or get an Electronic Verification Code (EVC). If you are a Section 8 Company, you must use a Digital Signature Certificate (DSC).

Step 7: Submit and Get Your Acknowledgment

Once you submit, you will get an acknowledgment number. Keep it safe. You will need to track your application.

Step 8: Income Tax Department Review

Now you wait. The Income Tax Department will either approve your application straight away or ask for more info. If they request clarification or extra documents, make sure you reply on time.

Step 9: Get Your Registration Certificates

Once you are approved, you will receive your 12A and 80G registration certificates along with a Unique Registration Number (URN).

Validity:

1. Provisional – 3years

2. Regular - 5 Years

Required documents for 12A and 80G Registration

1. Certificate of Incorporation: You will need to submit a copy of your applicants certificate of incorporation for both 12A and 80G registration.

2. Trust Deed/MOA & AOA: If you have registered as a trust, attach the trust deed. If you are a company, include your Memorandum of Association (MOA) and Articles of Association (AOA) with your application.

3. PAN Card: A copy of your applicants PAN card is a must for the registration process.

4. Bank Statements: You have to provide bank statements for the last three years to show your financial activity.

5. Audit Report: Submit your audit reports for the past 3 years with your for 12A and 80G registration application

6. Objectives: Clearly state why you are seeking 80G and 12A registration necessary. your objectives fit the requirements under Section 11 and Section 80G of the Income Tax Act.

7. List of Trustees/Members: Trusts need to submit a list of trustees and their personal details. Companies should provide a list of members with their details.

8. Income and Expenditure Account: Please enclose the income and expenditure accounts for the last 3 years with your registration documents.

9. Form 10A and 10G: Fill out the and submit Form 10A and 10G online, along with all the required documents, for both 12A and 80G registration.

Getting 12A and 80G Registration charitable organization both legal and financially solid. With 12A, your NGO don’t have to worry about income tax. 80G, on the other hand, gives donors a reason to trust you, since their contributions become tax-deductible. That is how you set yourself up for real growth and transparency.

At Tax Esquire CA Firm in Greater Noida, we handle the whole process for you start to finish. We take care of the paperwork, make sure you meet every requirement, and guide you each step of the way. You get to concentrate on making a real difference, while we ensure you are set up right.