Introduction to 12AB Registration
12AB Registration is mandatory for NGOs, charitable trusts, societies, and Section 8 companies to claim income tax exemption on surplus income under Sections 11 and 12 of the Income Tax Act, 1961.
The earlier 12AA registration system has been replaced with 12AB, introducing time-bound validity and periodic renewal to ensure transparency and accountability.
This Saving Mantra guide explains the step-by-step process for 12AB registration in India, covering eligibility, documentation, filing process, timelines, and post-registration compliance.
What Is 12AB Registration?
12AB registration:
- Grants income tax exemption to eligible NGOs
- Is issued by the Income Tax Department
- Has limited validity (generally 5 years)
- Requires periodic renewal and compliance
Without 12AB registration, an NGO’s income becomes taxable.
Who Should Apply for 12AB Registration?
12AB registration is required for:
- Charitable Trusts
- Registered Societies
- Section 8 Companies
- NGOs seeking 80G approval
- NGOs applying for CSR or government grants
Benefits of 12AB Registration
- Exemption of income used for charitable purposes
- Eligibility to apply for 80G registration
- Increased donor and CSR credibility
- Legal recognition as a tax-exempt entity
- Long-term compliance stability
Types of 12AB Registration
1. Provisional 12AB Registration
- For newly formed NGOs
- Valid for 3 years
- No activity proof required initially
2. Regular 12AB Registration
- For NGOs with existing activities
- Valid for 5 years
- Requires activity and financial records
Eligibility Criteria for 12AB Registration
An NGO must:
- Be legally registered as Trust, Society, or Section 8 Company
- Have charitable objects only
- Not distribute profits or income
- Maintain proper books of accounts
- Use income strictly for charitable purposes
Step-by-Step Process for 12AB Registration in India
Step 1: Ensure NGO Legal Registration
The NGO must be registered under:
- Indian Trusts Act
- Societies Registration Act
- Companies Act, 2013 (Section 8)
Step 2: Prepare Required Documents
Commonly required documents include:
- NGO registration certificate
- Trust deed / MOA / Bye-laws
- PAN of NGO
- Details of trustees/directors
- Address proof of registered office
- Activity report (if applicable)
- Audited financial statements (if available)
Step 3: Choose Applicable Form
- Form 10A – For provisional registration or first-time applicants
- Form 10AB – For regular registration or renewal
Step 4: File Online Application
- Login to Income Tax e-filing portal
- Fill Form 10A or 10AB
- Upload supporting documents
- Submit application using DSC or EVC
Step 5: Verification & Inquiry
The Income Tax Department may:
- Request additional documents
- Seek clarification on activities
- Examine genuineness of objectives
Prompt and accurate replies are essential.
Step 6: Grant of 12AB Certificate
Once satisfied:
- 12AB registration order is issued
- Validity period mentioned clearly
- NGO becomes eligible for tax exemption
Time Required for 12AB Registration
- Provisional registration: 15–30 days
- Regular registration: 1–3 months
Timelines may vary based on scrutiny.
Post-12AB Registration Compliance
After obtaining 12AB registration, NGOs must:
- File income tax returns on time
- Maintain books of accounts and audit reports
- Intimate changes in objects or management
- Apply for renewal before expiry
Non-compliance may lead to cancellation of 12AB registration.
Common Reasons for 12AB Rejection
- Non-charitable or vague objectives
- Incomplete documentation
- No genuine activities
- Financial inconsistencies
- Delay in filing replies or clarifications
How Saving Mantra Helps NGOs
Saving Mantra provides end-to-end 12AB registration services, including:
- Eligibility assessment
- Documentation and drafting support
- Form 10A / 10AB filing
- Handling income tax notices
- Ongoing NGO compliance management
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. Income tax provisions and procedures are subject to change. Readers are advised to consult qualified professionals before applying for 12AB registration. Saving Mantra shall not be responsible for decisions taken based on this information.