12A and 80G registrationin India.
The two income-tax registrations almost every non-profit eventually needs. 12A makes the entity itself tax-exempt on its surplus; 80G lets donors claim a 50% deduction on their donations. Filed together on the same application, one engagement, two certificates at the end.
Brief last revised · July 2026
How the registration works
From application drafted to the two URNs on the Income Tax portal.
Situations that bring non-profits to this filing
The mechanics of a 12A/80G application are the same regardless of the reason, but the situation behind it varies. These are the four patterns behind almost every registration engagement:
- i.
A newly-incorporated Section 8 company
The Section 8 licence has just been granted, or the company is a few weeks old. Under Rule 17A, Form 10A can be filed within one month of the non-profit's establishment for provisional registration. Getting 12A and 80G in place early lets the entity accept donations, start operations, and issue 80G-compliant receipts from Day 1.
Register right after Section 8 incorporation - ii.
A trust or society preparing for a donor campaign
An existing trust or society is preparing for a fundraising drive (individual campaign, corporate CSR pitch, grant application) where donors will expect 80G. Without 80G, most corporate donors and higher-bracket individual donors walk away. Filing 12A/80G before the campaign opens converts the pipeline.
Register for a fundraising drive - iii.
An established non-profit that never registered
A non-profit that has been operating for years on grants or self-generated income, has been paying tax on any surplus, and now wants to get on the exemption regime. Form 10AB (regular registration) is used since activities have already commenced. Past accounts are reviewed for the activity note.
Register an established non-profit - iv.
Provisional registration reaching its three-year term
The provisional registration under Form 10A is valid for three years and does not renew as provisional. Form 10AB must be filed at least six months before the provisional expires (or within six months of commencing activities, whichever is earlier) to convert to regular. Missing this deadline lapses the registration entirely.
Renew from provisional to regular
Two registrations, one application
12A and 80G look like two separate registrations. They cover different things and operate independently. But the Income Tax Department lets you apply for both in a single application. Same form, same documents, same supporting projections.
What each application form does
- FORM 10AThe application used for the first-time provisional registration under Sections 12AB and 80G. Filed within one month of the non-profit's establishment. Both 12A and 80G are ticked on the same form. Provisional registrations issued on this form are valid for three years and cannot be extended as provisional.
- FORM 10ABThe application used to convert provisional registrations into regular ones, or to renew an expiring regular registration. Filed at least six months before the provisional expires, or within six months of commencing activities, whichever comes first. Regular registrations are valid for five years and are renewable indefinitely on this same form.
- URNUnique Registration Number. Once approved, the Income Tax Department issues a 16-digit URN for each registration. Donors quote the 80G URN on their donation receipts to claim the tax deduction. The 12A URN is used for filing the non-profit's income-tax return (ITR-7).
- FORM 10BDThe annual statement of donations. Filed by 31 May each year listing every 80G donor with PAN and donation amount for the previous financial year. Without this filing, donors cannot claim the 80G deduction even with a valid receipt in hand. Filed year after year, permanently.
The application is signed digitally by the authorised signatory of the non-profit and submitted on the Income Tax e-filing portal. The portal is the same one used for filing income-tax returns; if the non-profit does not have a portal login yet, that is set up first.
How the CIT (Exemptions) reviews the application
Once Form 10A or 10AB is filed, the application is routed to the Commissioner of Income Tax (Exemptions) with jurisdiction over the state. The review is document-driven; there is usually no in-person hearing.
Object clause check
The CIT verifies that the trust deed, MOA, or society memorandum contains only charitable objects as defined in Section 2(15) of the Income Tax Act: relief of the poor, education, medical relief, preservation of environment, and any other object of general public utility. Any commercial or profit-distribution clause is a hard block.
Activity note vs financial position
The CIT compares the drafted activity note (planned or historical) with the audited or projected accounts. If projected donations are ₹50 lakh but the activity note describes a ₹5-lakh operation, or vice versa, a clarification is raised. The two must line up.
Governing body check
Each director, trustee, or governing-body member is verified against PAN and Aadhaar. Any member with a criminal record, or previous disqualification under Section 12AB, causes the application to be rejected.
Provisional vs regular decision
A newly-established non-profit gets provisional registration under Form 10A. An entity that has been operating for a while (and can show past activity, past accounts, past 85% application) gets regular registration under Form 10AB. Getting the wrong form filed causes a rejection or a delay.
Documents you will need to send
For the non-profit
- Certificate of Incorporation (Section 8 company), trust deed (charitable trust), or society registration certificate
- PAN of the non-profit
- Memorandum and Articles, or the trust deed / society memorandum
- Bank account statement of the non-profit (the past year if operating, or proof of account-opening if newly incorporated)
- Audited or unaudited accounts for the past three years (or projected accounts for a new non-profit)
For the governing body
- Self-attested PAN and Aadhaar of every director, trustee, or governing-body member
- Recent address proof for each (bank statement, electricity bill, or mobile bill less than two months old)
- Digital Signature Certificate of the authorised signatory (usually already in hand from incorporation)
For the application itself
Most of the actual writing in the application is the activity note. The Income Tax Department wants to understand what the non-profit will do, who it serves, and how it sustains itself. This is drafted from a short brief; you only need to supply the facts.
- A short note describing the planned activities, the beneficiaries, and the funding model
- Details of any related entity (sister trust, parent Section 8, group structure)
- Details of any donor or grant already pending
From application to certificate
The application itself goes out in the first week. The bulk of the waiting is on the CIT (Exemptions) side; they take their time examining the activity note and the supporting accounts.
- Days 1–2
Briefing and eligibility check
The structure of the non-profit, its activities, and the right type of registration (provisional under Form 10A, or regular under Form 10AB) are confirmed. The document checklist arrives the same day.
- Days 2–4
Application drafted and documents assembled
Form 10A or Form 10AB is drafted with the activity note, the financial position, and the supporting declarations under Rule 17A. Documents are checked for completeness before submission.
- Days 5–7
Application filed on the Income Tax portal
The application is filed on the Income Tax e-filing portal, signed digitally by the authorised signatory. 12A and 80G are filed together in a single application, two registrations.
- Days 7–30
CIT (Exemptions) review
The Commissioner of Income Tax (Exemptions) examines the application and the supporting documents. Any clarifications asked for are handled within this window. Provisional registrations are typically issued within the first 30 days.
- Days 30–90
Certificates issued
Once approved, the 12A and 80G certificates are issued and delivered. Each carries a Unique Registration Number (URN). The non-profit can begin claiming exemption on its surplus, and donors can begin claiming deductions on their donations.
Our fee
Starting at ₹8,500 for both 12A and 80G filed together.
- Professional fee₹8,500Flat, for both 12A and 80G filed together in one application. Includes eligibility review, activity-note drafting, Form 10A or 10AB preparation, filing on the Income Tax portal, and follow-up on any clarification the CIT (Exemptions) asks for.
- Government filing feeNilThe Income Tax Department does not charge a filing fee on Form 10A or Form 10AB. No government fee on top of the professional fee.
- Chartered Accountant feesAs applicableFor the Form 10B or 10BB annual audit report (mandatory once registered, regardless of turnover). Typical range ₹8,000–₹25,000 per year depending on the size of the operation. Paid directly to the CA.
- Annual compliance retainer (optional)Quoted separatelyThe Form 10BD statement of donations, ITR-7 income-tax return, Form 10B/10BB audit coordination, and the 85%-application check can be taken up as a year-round retainer. Scope shared on request.
- Renewal application (every 3 or 5 years)Quoted separatelyForm 10AB renewal, filed six months before the current registration expires. Charged at a lower rate than the initial registration since the activity note and governing-body records already exist.
Your exact all-in number appears in the online form before any payment is taken. The Income Tax Department does not charge a filing fee on Form 10A or 10AB.
What changes on the ground
The certificates themselves are scanned PDFs and the URNs are short strings. The work of using them well is what matters: how donors quote the 80G URN, how the entity claims the 12A exemption on its returns, and what records have to be kept to defend the registration in the event of a scrutiny.
- 12A URN active on the Income Tax portalThe 16-digit 12A URN is issued and reflects on the Income Tax portal. From the date of issue, the non-profit's surplus (donations received minus money spent on the work) is exempt from tax under Sections 11 and 12, provided at least 85% of receipts are spent on the work in the year.
- 80G URN active for donorsThe 16-digit 80G URN is issued. Donors quote this URN on their donation receipts and their income-tax returns to claim the 50% (or, for a few national funds, 100%) deduction under Section 80G. Without the URN on the receipt, the donor cannot claim.
- Donor receipt template with the URNEvery donation receipt must show donor name, PAN, donation amount, donation date, and the 80G URN. A ready-to-use receipt template is delivered once the URN is issued. Receipts without the URN are not accepted by the income-tax portal when the donor files their return.
- Form 10B / 10BB annual audit reportThe non-profit's accounts must be audited every year by a Chartered Accountant, regardless of turnover. Form 10B applies where receipts are ₹5 crore or more, or where foreign contributions are received; Form 10BB applies otherwise. Filed one month before the income-tax return.
- Form 10BD statement of donations (annual)Filed by 31 May each year listing every 80G donor with their name, PAN, and donation amount for the previous financial year. The donors' deductions are then pre-filled in their tax returns. Without this filing, donors cannot claim the 80G benefit even with a valid receipt in hand.
- CSR-1 registration for CSR eligibilityCSR-1 registration with MCA is a separate filing, required to receive CSR funding from Indian companies subject to Section 135 of the Companies Act. 12A/80G is a prerequisite but not a substitute. Filed on the MCA portal after the 12A certificate is issued.
- Foreign contribution note (needs FCRA)12A and 80G cover domestic donations only. Any foreign contribution (from a person outside India, or a foreign source in India) requires a separate FCRA registration with the Ministry of Home Affairs under the Foreign Contribution Regulation Act 2010. Eligibility begins after three years of activity and ₹15 lakh of on-object spend.
- Renewal calendar (3-year provisional, 5-year regular)Provisional registrations under Form 10A are valid for three years and cannot be renewed as provisional; Form 10AB must be filed at least six months before expiry, or within six months of commencing activities, whichever is earlier. Regular registrations are valid for five years and renewable indefinitely on Form 10AB, filed six months before expiry. Missing either deadline lapses the registration.
Common mistakes to avoid
12A/80G filings are lightweight compared with income-tax litigation, but small mistakes at the start (or a year later) have outsized consequences. These are the five that come up most often.
Letting the three-year provisional registration lapse
Form 10A gives a provisional registration valid for three years. It cannot be renewed as provisional. Form 10AB must be filed at least six months before the provisional expires, or within six months of commencing activities, whichever comes first. Missing both windows lapses the registration entirely; the entity has to start over with a fresh Form 10A, and the intervening years are treated as un-registered.
Missing the annual Form 10B or 10BB audit report
Once 12A is granted, the non-profit's books must be audited every year by a Chartered Accountant. Form 10B applies where receipts are ₹5 crore or more, or where foreign contributions are received; Form 10BB applies otherwise. The audit report is filed one month before the income-tax return. Missing this filing forfeits the 12A exemption for that year, and the surplus becomes taxable.
Not filing Form 10 for accumulation of unspent income
Section 11(2) allows a non-profit to accumulate up to 15% of receipts (implicit) plus additional amounts specified in advance via Form 10 (explicit accumulation) for a purpose stated in that form, for up to five years. Skipping Form 10 causes any unspent income beyond 15% to be taxed even where the money is being genuinely saved for a real project.
Assuming CSR-1 is included in 12A/80G
It is not. CSR-1 is a separate registration with the MCA, required to receive CSR funding from Indian companies subject to Section 135 of the Companies Act. 12A/80G is a prerequisite but does not substitute for it. Not filing CSR-1 keeps the non-profit off the eligible-implementing-agency list, blocking corporate CSR pipelines.
Not preserving books for eight years post-registration
Section 12A(1)(bb) read with Rule 17B requires books, vouchers, donation records, and audit reports to be preserved for at least eight years from the end of the assessment year. Non-profits caught in scrutiny five or six years later without these records lose the exemption for the years under review, plus pay tax with interest.
Understanding 12A and 80G
The tax law behind the certificates, read at your pace, in any order.
What 12A actually does
12A is a registration under Section 12A (and, from 2021, Section 12AB) of the Income Tax Act 1961. Once granted, the surplus a non-profit generates from its charitable work is exempt from income tax, provided at least 85% of receipts are spent on that work in the year.
Without 12A, a registered non-profit is taxed like any other company. Surplus earned in a year (donations received minus money spent on the work) is taxable at the normal corporate rate (22 to 25% with surcharge and cess). For a small NGO with ₹20 lakh of unspent grants, that is a roughly ₹5-lakh tax bill the donor never expected to fund.
Income tied to the work is exempt
Donations, grants, programme fees, and other receipts directly tied to the work are not taxable under Sections 11 and 12, provided at least 85% is spent on that work in the same year.
Small side-businesses are exempt too
A non-profit can run a small business that supports its work (selling crafts made by beneficiaries, charging for a training programme it runs) and the income stays exempt under Section 11(4A). Larger commercial activity with no genuine link to the work is taxed even with 12A in place.
The exemption is conditional
If the non-profit pays out profits to founders, falls short of the 85% spending requirement, or strays into politically restricted activity, the exemption can be withdrawn (sometimes for past years, not just future ones) under Section 12AB(4).
No 12A, no exemption, even for genuine charity
Doing charitable work is not enough on its own. The Income Tax Department does not take 'we are a non-profit' as a self-evident exemption claim; the 12A registration is the proof.
What 80G actually does
80G is a registration under Section 80G of the Income Tax Act 1961 that benefits the donor, not the non-profit. Once 80G is granted, anyone donating to the non-profit can claim a deduction against their taxable income for what they gave.
The deduction is usually 50% of the donation. Donations to a handful of national funds (PM CARES, PM National Relief Fund, National Defence Fund, certain state-government funds) get 100% deduction, but for an ordinary 80G-registered non-profit, 50% is the rule.
Without 80G, donations to the non-profit are still legitimate, but carry no tax benefit at all for the donor. In practice, most individual donors and almost all corporate donors expect 80G; its absence narrows the funding pool sharply.
The simplest way to see why 80G is decisive in fundraising is to walk through one donor's position. Take an individual in the 30% income-tax bracket considering a ₹10,000 donation to a non-profit.
| Step | Without 80G | With 80G (50% deduction) |
|---|---|---|
| Donation given | ₹10,000 | ₹10,000 |
| Eligible deduction (50% of donation) | Nil | ₹5,000 |
| Tax saved at 30% on the deduction | Nil | ₹1,500 |
| Net cost of giving to the donor | ₹10,000 | ₹8,500 |
| Amount received by the non-profit | ₹10,000 | ₹10,000 |
The non-profit still receives the full ₹10,000 either way. But for the donor, the cost of giving drops by 15% with 80G in place. Multiply that across a donor base (especially corporate donors in higher brackets) and 80G is the difference between a fundraising plan that closes and one that does not.
For 100%-deduction institutions (rare; mostly national-level funds), the donor in the same bracket would save ₹3,000 on the ₹10,000 donation, netting the cost at ₹7,000.
Provisional, regular, renewal
The post-2021 registration cycle has three stages. Knowing where you are in the cycle matters because the renewal deadlines are strict and easy to miss.
Filed on Form 10A within one month of incorporation, before activities have meaningfully started. Granted within 30 days. Valid for three years. Designed to let a new NGO start operating and accepting donations immediately.
Filed on Form 10AB at least six months before the provisional expires, or within six months of commencing activities, whichever comes first. The Department reviews past activity, accounts, and the actual use of funds before granting. Valid for five years.
Filed on Form 10AB at least six months before the regular registration expires. The Department reviews the past five years' activity and accounts. Renewable indefinitely on this same cycle, as long as the entity continues to meet the conditions.
Causes the registration to lapse; the entity is treated as un-registered from the lapse date forward. Donations received after the lapse carry no 80G benefit, and the entity's surplus becomes taxable. A fresh Form 10A is required to come back, and the gap year cannot be cured.
Yearly compliance once registered
12A and 80G are not fire-and-forget registrations. Both rely on annual filings being current. Skipping any of these even for a single year puts the registration at risk.
- i.
Income-tax return (ITR-7) filed on time
Every year by 31 October for non-profits subject to audit (all 12A-registered entities are). The 12A exemption can only be claimed for a year if the return is filed by the deadline; a late return forfeits the exemption for that year.
- ii.
Form 10BD statement of donations
Filed by 31 May each year listing every 80G donor with their PAN and donation amount. Without this filing, donors cannot claim their deduction, even with a valid receipt in hand.
- iii.
Form 10B or 10BB audit report
A Chartered Accountant must audit the books every year, regardless of turnover. Form 10B where receipts are ₹5 crore or more, or foreign contributions are received; Form 10BB otherwise. The audit report is filed one month before the income-tax return.
- iv.
At least 85% spent on the work
Across the year, 85% of receipts must be spent on the work the non-profit was set up to do. The remaining 15% can be carried forward only in limited cases (accumulation via Form 10). Under-spent income is taxed.
- v.
Records kept for 8 years
All accounts, donation receipts, and supporting documents must be available for income-tax scrutiny for at least eight years from the end of the assessment year.
The 12A / 80G annual compliance bundle (Form 10BD, ITR-7, audit coordination, and the 85%-application check) can be taken up as a separate year-round retainer. Ask for the scope.
How 12A and 80G relate to FCRA
A common confusion: 12A, 80G, and FCRA are three separate registrations under three separate laws. Having 12A and 80G does not let a non-profit accept foreign donations; that requires a fourth registration under the Foreign Contribution (Regulation) Act 2010 with the Ministry of Home Affairs.
Makes the non-profit's own surplus tax-exempt. Domestic donations only. Governed by Sections 12A and 12AB of the Income Tax Act.
Lets domestic donors claim a 50% deduction on their donations. Has no bearing on foreign donations, which are governed by FCRA. Governed by Section 80G of the Income Tax Act.
Required for any foreign donation, regardless of whether the donor is in India or abroad, and regardless of currency. The NGO must have been active for three years and have spent ₹15 lakh on objects to be eligible.
A new Section 8 typically gets 12A and 80G first (within the first month), runs activities for three years building a track record, then applies for FCRA when the work calls for it. FCRA work is specialist territory and is scoped separately.
Frequently paired with this.
Section 8 Company Registration
Form a non-profit company for charity, education, science, sports, social welfare, religion, or environmental work. The Registrar reads the objects carefully before granting the licence, so it takes a little longer than a Pvt Ltd.
Annual Compliance Retainer
A year-round retainer for Pvt Ltd, OPC, and Section 8 companies. Covers annual filings, director KYC, board minutes, registers, and the compliance calendar.
- i.
Fill the online form
Save and resume anytime. No pressure to finish in one sitting.
- ii.
Review the scope and fee
The exact all-in fee, the timeline, and what's included appear together before any payment.
- iii.
Filing begins
Your dashboard tracks every step. Every form is signed and certified by a Practising Company Secretary.