12A and 80G Registration Online for NGOs in India

To qualify for 12AB and 80G registration, an NGO must meet specific criteria including:

• Charitable or religious purpose: Activities must fall under Section 2(15) of the Income Tax Act, including education, medical relief, poverty relief, yoga, environmental protection, or general public utility.
• Non-profit purpose: Income and assets must not benefit members, founders, or trustees directly or indirectly.
• Genuine activities: The NGO's activities must be genuine, actually carried out, and not merely stated in its documents.
• Nature of fund usage: Income must be applied towards the NGO's charitable objects in India.
• Proper accounts: Maintain books of all receipts and expenses, with separate books for incidental commercial activities.
• Approved investments: Surplus funds and investments must be held only in modes permitted under Section 11(5).
• Compliance with other laws: The NGO must comply with laws relevant to its activities, including FCRA requirements where applicable.
• Open to the general public: The NGO must serve the public at large, not be established exclusively for the benefit of a particular religious community or caste (Section 80G(5)).
• 80G religious spending limit: For 80G, religious expenditure must not exceed 5% of the institution's total income.

Keep the following documents ready before applying, based on your NGO's structure and circumstances:

• Self-certified copy of the NGO's PAN card.
• Registration documents
  • Trust: Trust Deed.
  • Society: Registration Certificate, MoA, and Bye-laws.
  • Section 8 company: Certificate of Incorporation, Memorandum and Articles of Association (MoA/AoA).
• Registered office proof, including a utility bill, house tax receipt, or rent agreement with a landlord's No Objection Certificate (NOC).
• Audited financial statements and bank statements for the last three years, or since inception if the NGO is newer.
• Activity note and progress report covering activities carried out since inception or during the last three years.
• Trustee, director, or governing body details, including addresses, contact details, and PAN.
• Donor list with PAN details, if donations have been received, particularly for 80G registration.
• Affidavit or undertaking from the NGO's head confirming the genuineness of its activities.
• Copies of any earlier registration or approval already granted to the NGO.
• FCRA registration certificate, if the NGO is registered under the Foreign Contribution (Regulation) Act, 2010.
• NITI Aayog DARPAN registration number, where applicable.

The process for applying for 12AB and 80G registration is largely the same, with both applications filed online through the Income Tax Department's e-filing portal. 12AB is usually handled first as the base registration, but you can apply for both together or one after the other, depending on your organization's circumstances.

The process generally involves the following steps:

1. Preparation of Documents: Gather PAN, registration/incorporation proof, financials, activity details, and trustee or governing body details.
2. Log in to the Portal: Access the official Income Tax e-filing portal (incometax.gov.in).
3. Go to "Income Tax Forms": Select the appropriate 'Form Name' under the 'Persons Not Dependent on Any Source of Income' category, if applicable.
4. Select Form 104 (for Provisional/Existing Registration) or Form 105 (for Conversion/Renewal): Choose the relevant assessment year.
5. Prepare and Submit Online: Select "Prepare and Submit Online" as the submission mode.
6. Fill in Details: Accurately complete all required information in the form, including details about the organization, its objectives, and activities.
7. Attach Documents: Upload self-attested scanned copies of all supporting documents.
8. Digital Signature/EVC: Submit the form using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
9. Acknowledgment: Upon successful submission, an acknowledgment receipt will be generated, which can be tracked under the ‘View Filed Forms’ section.
10. Scrutiny by the Income Tax Department: The Commissioner of Income Tax (Exemptions) will review the application and documents. They may request additional information or clarification.
11. Opportunity of Being Heard: In case of any discrepancies or potential rejection, the applicant will be given an opportunity to be heard.
12. Issuance of Certificate/Order: Upon satisfaction, the Commissioner will pass a written order granting the 12AB and/or 80G certificate.

Provisional registration through Form 104 generally takes about one month, as the application is subject to limited scrutiny. Permanent registration through Form 105 can take up to six months, as the department conducts a more detailed verification of the NGO’s activities.

Points to Remember:

• Under the Income Tax Act, 2025, effective from 1 April 2026, Form 10A has been replaced by Form 104 for provisional registration or approval, while Form 10AB has been replaced by Form 105 for regular registration, renewal, or conversion. The application process remains largely the same; only the form numbers have changed. Therefore, applications filed on or after 1 April 2026 should use Form 104 or Form 105, as applicable, instead of Forms 10A or 10AB.
• Even when 12AB and 80G are applied for together, the Income Tax Department grants them separately, with a distinct Unique Registration Number (URN) or conditional approval for each. If you obtain 12AB first and apply for 80G later, you must file a separate application through Form 105.

12AB and 80G Application Forms and Their Timelines

The application for 12AB and 80G registrations, as well as their renewals, is done through specific forms with defined timelines:

For 12A/12AB, eligible small trusts with total income of up to ₹5 crore in each of the previous two years may receive 10-year validity instead of 5 years for applications made on or after 1 April 2025. This extended validity applies only to 12A/12AB; 80G registration remains valid for 5 years.

The Income Tax Department does not charge a government filing fee for 12AB or 80G registration. In practice, the total cost can range from around ₹3,000 to ₹10,000, depending on professional assistance and supporting requirements.

The main cost components are:

Note: Professional and supporting costs are indicative and depend on the service provider, organization, and documents involved.

Holding both 12AB and 80G registration gives an NGO several important advantages:

1. Income tax exemption: 12AB allows eligible NGOs to claim exemption on income applied towards charitable purposes, subject to the conditions under Sections 11 and 12. Generally, at least 85% of eligible income must be applied during the year, subject to applicable rules and exceptions.
2. Encourages donations: An 80G registration allows eligible donors to claim a 50% or 100% deduction, depending on the type of donation and applicable conditions. This can make the NGO more attractive to individual and institutional donors.
3. Eligibility for government grants: Many government grant-in-aid schemes require NGOs to hold 12AB and 80G, alongside registration on NITI Aayog's NGO Darpan portal. This applies to funding under bodies such as the Ministry of Social Justice and Empowerment, the Ministry of Tribal Affairs, and the National Health Mission, each of which also has its own scheme-specific eligibility conditions.
4. Access to CSR funding: NGOs seeking CSR funding must generally register for CSR-1on the MCA portal. Eligible implementing agencies also need the required tax registrations and, in many cases, a three-year track record of similar activities.
5. Supports foreign funding eligibility: An NGO seeking foreign contributions must obtain FCRA registration or prior permission. 12AB registration and a qualifying track record are among the requirements for FCRA registration, subject to the other conditions under FCRA.
6. Credibility with institutional donors: Grant-making foundations, corporates, and other institutional donors often check an NGO's 12AB and 80G status before funding it. These registrations can therefore support access to larger and more structured funding opportunities.
7. Ability to accumulate income: An NGO can accumulate income beyond the permitted 15% for a specific charitable purpose by complying with Section 11(2) and filing Form 10 within the prescribed timeline.

The Income Tax Department grants 12AB and 80G registrations for a fixed period, so organizations must renew them to continue claiming the applicable benefits. The Finance Act, 2020 introduced the periodic renewal framework, while the Finance Act, 2025 extended the validity period for eligible small trusts.

The current validity rules are:

• 12AB: Registration generally remains valid for 5 years. Eligible small trusts with total income up to ₹5 crore in each of the two preceding years can receive 10-year validity.
• 80G: Registration generally remains valid for 5 years, including for small trusts. The 10-year extension does not apply to 80G.
• Renewal: Organizations must apply for renewal within the prescribed period before their registration expires to continue their tax benefits without interruption.

Note: For regular registration, file Form 105 at least six months before the existing registration expires. For example, if your registration expires on 31 March 2027, file the renewal application by 30 September 2026.

How to Renew 12AB and 80G Registration?

The renewal process is completed online through the Income Tax e-Filing portal:

• File Form 105 within the prescribed period.
• Upload the required financial statements, activity reports, and other documents.
• The Commissioner (Exemptions) may examine the application and seek additional information about the organization's activities.
• If the requirements are satisfied, the department issues an order granting registration for the applicable validity period.

Once 12AB and 80G registrations are granted, an NGO must meet ongoing annual filing and record-keeping requirements. These are:

1. Maintain proper books of accounts: Keep financial records such as receipts, expenses, donation registers, and bank statements as required under Section 11(4A) and Rule 17AA of the Income Tax Rules.
2. File the annual income tax return: NGOs claiming exemption under Sections 11 and 12 generally file ITR-7 annually by the applicable due date.
3. Issue donation receipts and Form 10BE: For 80G donations, issue each donor a receipt and an annual Form 10BE certificate. It should show the NGO's name, PAN, 80G number, and the donor's PAN, donation amount, and date.
4. File Form 10BD: File the annual statement of eligible donations received electronically in Form 10BD by 31 May following the financial year. Form 10BE is generated based on this filing.

Consequences of Non-Compliance

Failing to meet the conditions under Sections 12AB and 80G can lead to financial and legal consequences for an NGO. Key risks include:

• Loss of tax exemption: Failure to file the ITR or audit report on time, or breach of prescribed conditions, can result in denial of exemption under Sections 11 and 12.
• Cancellation of registration: In specified cases, such as non-genuine activities or misuse of funds, the department can cancel registration under Section 12AB(4).
• Late filing fees: Delayed ITR filing can attract a fee of up to ₹5,000 under Section 234F, along with interest on any overdue tax.

The application for 12AB and 80G requires accurate details and supporting documents. Even small errors or inconsistencies can result in rejection. Common reasons include:

1. Incomplete or incorrectly filled forms: Errors, missing mandatory fields, or inconsistent information in Form 104 for fresh registration or Form 105 for renewal or modification can lead to rejection. The information in these forms should match the supporting documents.
2. Objectives that do not qualify as charitable: The objects in your trust deed, MoA, or AoA must fall within the definition of charitable purpose under Section 2(15). Your actual activities should also align with these stated objects.
3. Poor financial records: Missing or unaudited financial statements, inconsistent accounts, or failure to show that income is being used for charitable purposes can raise concerns during review.
4. Failure to meet basic eligibility: An NGO must be validly registered as a Trust, Society, or Section 8 Company and hold a PAN. Organizations established for the benefit of a particular religious community or caste may also face restrictions under the applicable 12AB and 80G provisions.
5. Incomplete supporting documents: Missing documents such as the registration certificate, trust deed, financial statements, activity reports, or existing registration orders can delay the application or result in rejection.
6. Failure to respond to departmental queries: If the Income Tax Department requests additional information or clarification, failing to respond within the prescribed time can lead to rejection of the application.