12A Registration in India is essential for trusts, NGOs, societies, and Section 8 companies that want income tax exemption on their surplus or income. Without 12A registration, a non-profit organization is taxed like a normal entity. In this Saving Mantra guide, we explain what 12A registration is and the step-by-step process to apply for 12A in India, along with eligibility, documents, and compliance requirements.
What is 12A Registration?
12A Registration (now governed under Section 12AB of the Income Tax Act, 1961) allows charitable and non-profit organizations to claim exemption from income tax on income applied towards charitable or religious purposes.
Once approved, the organization does not need to pay income tax on its surplus income, subject to compliance with applicable conditions.
Who Can Apply for 12A Registration?
- Charitable Trusts
- Registered Societies
- Section 8 Companies
- NGOs engaged in charitable, educational, religious, or social welfare activities
Benefits of 12A Registration
- Income tax exemption on surplus income
- More funds available for charitable activities
- Increased credibility with donors and authorities
- Mandatory for availing 80G benefits later
- Long-term financial sustainability for NGOs
Step-by-Step Process to Apply for 12A Registration in India
Step 1: Ensure NGO is Properly Registered
The organization must be registered as a Trust, Society, or Section 8 Company before applying for 12A.
Step 2: Check Applicability of 12AB
As per current rules, new and existing NGOs must apply under Section 12AB, which replaces earlier 12A provisions.
Step 3: Prepare Required Documents
Keep incorporation documents, activity details, and financial statements ready.
Step 4: File Online Application (Form 10A / 10AB)
Submit Form 10A (for provisional registration) or Form 10AB (for regular registration) on the Income Tax portal.
Step 5: Submit Details of Activities
Provide details of charitable objects and activities carried out or proposed to be carried out.
Step 6: Verification by Income Tax Department
The department may seek additional information or clarification regarding activities or documents.
Step 7: Grant of 12A (12AB) Registration Certificate
Upon satisfaction, the Income Tax Department issues the 12AB Registration Certificate.
Documents Required for 12A Registration
- Trust Deed / MOA & AOA / Society Rules
- PAN Card of NGO
- Registration Certificate
- Address proof
- Details of trustees/directors
- Activity report (if existing NGO)
- Financial statements (if applicable)
Validity of 12A Registration
- Provisional registration: Valid for 3 years
- Regular registration: Valid for 5 years
- Renewal must be applied before expiry
Post 12A Registration Compliance
- File Income Tax Return every year
- Apply income only for charitable purposes
- Maintain proper books of accounts
- Avoid activities prohibited under Income Tax Act
Difference Between 12A and 80G Registration
- 12A: Tax exemption for NGO
- 80G: Tax deduction benefit for donors
Both registrations are important for NGOs.
Why Choose Saving Mantra for 12A Registration?
- Expert guidance on 12AB compliance
- Accurate documentation and filing
- Transparent and affordable pricing
- Quick response to department queries
- End-to-end NGO tax compliance support
Conclusion
Applying for 12A Registration in India is a crucial step for NGOs to achieve tax exemption and financial efficiency. By following the correct step-by-step 12A application process, organizations can legally maximize funds for social impact. Saving Mantra ensures a smooth, compliant, and hassle-free 12A registration experience.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, tax, or professional advice. Provisions related to 12A/12AB registration may change as per Income Tax laws and notifications. Readers are advised to consult qualified professionals before applying for 12A registration or taking related decisions.