Introduction to 12AA Renewal
Registration under Section 12AA (now transitioned to 12AB) of the Income Tax Act, 1961 is mandatory for NGOs, trusts, and societies to claim income tax exemption on their surplus income.
As per amended provisions, all existing 12AA registrations must be renewed within prescribed timelines to continue availing tax exemption benefits.
This Saving Mantra guide explains the step-by-step process for 12AA (12AB) renewal in India, ensuring full compliance and uninterrupted tax benefits.
What Is 12AA / 12AB Renewal?
12AA renewal refers to the revalidation of:
- Existing 12AA registration
- Provisional 12AB registration
Upon renewal:
- A new 12AB certificate is issued
- Validity is generally 5 years
- Tax exemption under Sections 11 & 12 continues
Who Needs to Apply for 12AA Renewal?
12AA / 12AB renewal is required for:
- Charitable Trusts
- Registered Societies
- Section 8 Companies
- NGOs already holding 12AA or provisional 12AB registration
Failure to renew may lead to loss of income tax exemption.
Benefits of 12AA Renewal
- Continuation of income tax exemption
- Eligibility for 80G approval
- Increased donor and CSR credibility
- Legal compliance with Income Tax Department
Eligibility Criteria for 12AA Renewal
To be eligible, the NGO must:
- Be legally registered as Trust / Society / Section 8 Company
- Carry out genuine charitable activities
- Maintain proper books of accounts
- File income tax returns regularly
- Use income strictly for charitable purposes
Step-by-Step Process for 12AA Renewal in India
Step 1: Review Existing 12AA / 12AB Status
Check:
- Current registration type (12AA or provisional 12AB)
- Validity period
- Compliance history
This determines the applicable renewal timeline.
Step 2: Prepare Required Documents
Commonly required documents include:
- Existing 12AA / 12AB certificate
- Registration certificate of NGO
- Trust deed / MOA / Bye-laws
- PAN of NGO
- Activity report
- Audited financial statements
- List of trustees / directors
- Bank account details
Step 3: File Online Application (Form 10AB)
- Login to Income Tax e-filing portal
- Select Form 10AB for renewal
- Fill organizational and activity details
- Upload supporting documents
- Submit using DSC or EVC
Form 10AB is mandatory for all 12AA renewals.
Step 4: Verification & Scrutiny
The Income Tax Department may:
- Seek clarifications
- Ask for additional documents
- Conduct inquiries to verify genuineness of activities
Step 5: Grant of 12AB Registration
Upon satisfaction:
- New 12AB registration order is issued
- Validity: 5 years
- NGO continues to enjoy tax exemption benefits
Time Limit for 12AA Renewal
- Renewal application must be filed at least 6 months before expiry
- Processing time: 1 to 3 months, depending on scrutiny
Timely filing avoids lapse of exemption.
Post-Renewal Compliance Requirements
After renewal, NGOs must:
- File income tax returns on time
- Maintain proper books and audit reports
- File Form 10BD & issue Form 10BE (if 80G approved)
- Intimate changes in objects or management
Non-compliance can lead to cancellation of 12AB registration.
Common Reasons for 12AA Renewal Rejection
- Non-genuine or inactive charitable activities
- Incomplete or incorrect documents
- Diversion of funds for non-charitable purposes
- Irregular tax filings
- Mismatch between objectives and activities
How Saving Mantra Helps
Saving Mantra provides end-to-end 12AA / 12AB renewal services, including:
- Eligibility and compliance review
- Document preparation & verification
- Form 10AB filing
- Handling income tax queries
- Ongoing NGO compliance support
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. Tax laws and procedures are subject to change. Readers are advised to consult qualified professionals before filing 12AA/12AB renewal applications. Saving Mantra shall not be responsible for decisions taken based on this information.