12A and 80Gregistration in India.
The two income-tax registrations almost every non-profit eventually needs. 12A makes the entity itself tax-exempt; 80G lets donors claim deduction on their donations. Filed together on the same application, with a single engagement and two certificates at the end.
How the registration works
From application drafted to certificates issued.
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 the application form actually does
- Form 10AThe application used for the first-time provisional registration. Filed within one month of the non-profit's incorporation. Both 12A and 80G are ticked on the same form. The provisional registrations issued under this form are valid for three years.
- 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. The regular registrations are valid for five years and are renewable indefinitely on this same form.
- URN — Unique Registration NumberOnce 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.
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 doesn't have a portal login yet, that is set up first.
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. We draft this 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, etc.
- 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 Income Tax Department's end — they take their time examining the activity note and the supporting accounts.
- Days 1–2
Briefing and engagement
The structure of the non-profit, its activities, and the right type of registration (provisional or regular) are confirmed. The engagement letter and document checklist arrive on 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. 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 — one filing, two registrations.
- Days 7–30
Department review
The Income Tax officer examines the application and the supporting documents. Any clarifications they ask 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
₹8,500flat for both 12A and 80G filed together.
The Income Tax Department does not charge a filing fee on Form 10A or 10AB. No government fee on top of our professional fee.
Renewal applications, filed every five years for the regular registration, are quoted separately at a lower rate.
After the URN arrives
The certificates themselves are scanned PDFs and the URN numbers 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.
Donation receipts carry the 80G URN
Every donation receipt must show the donor's name, PAN, donation amount, donation date, and the 80G URN. We send a ready-to-use receipt template once the URN comes through. Receipts without the URN are not accepted by the income-tax portal when the donor files their return.
Statement of donations filed yearly
The non-profit files a statement (Form 10BD) by 31 May each year, listing every donor who received an 80G receipt that year, with their PAN and donation amount. The donors' deductions are then pre-filled in their tax returns — without this filing, they cannot claim.
Income-tax return filed every year
The non-profit must file its income-tax return every year, regardless of whether it had income or not. Skip a year and the 12A exemption becomes unavailable for that year.
At least 85% of receipts spent on the work
To keep the 12A exemption alive, at least 85% of what came in must go out to the work the non-profit was set up to do, in the same year. Anything under-spent rolls over only in limited cases. This is the rule most non-profits trip on first.
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 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 (22–25% with surcharge and cess). For a small NGO with ₹20 lakh of unspent grants, that's 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, 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. Larger commercial activity that has 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.
No 12A, no exemption — even for genuine charity
Doing charitable work isn't enough on its own. The Income Tax Department doesn't 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 tax math, worked out
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 who is 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 doesn't.
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 current 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 the 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 and the entity to be 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 aren't 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 filed on time
Every year by 31 October for non-profits subject to audit. 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.
Statement of donations (Form 10BD)
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.
Audited accounts
A Chartered Accountant must audit the books every year, regardless of turnover. The audit report is filed with 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. 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 financial 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 and we'll send it.
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.
Lets domestic donors claim a 50% deduction on their donations. Has no bearing on foreign donations, which are governed by FCRA, not 80G.
Required for any foreign donation, regardless of whether the donor is in India or abroad and regardless of currency. 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.
Often picked up alongside this one.
Section 8 Company Registration
Form a non-profit company for charity, education, science, sports, social welfare, religion, or the environment. The Registrar scrutinises the objects before granting a licence, so it takes a little longer than a Pvt Ltd.
Annual Compliance Retainer
Year-round retainer for Pvt Ltd, OPC, and Section 8 companies — 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 engagement letter
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.