12a Registration (Tax Exemption)
12A registration is a one-time registration granted by the Income Tax Department to NGOs, trusts, and societies. It allows them to claim complete exemption from income tax on their surplus income, provided the income is used solely for charitable or religious purposes.
Types Of 12a Registration
12A registration enables NGOs to receive tax exemptions while ensuring compliance with income tax regulations.
12A Provisional Registration
Issued for new NGOs, valid for 3 years to allow initial compliance assessment.
12A Final Registration
Granted after verification of NGO activities and compliance, usually valid for 5 years.
Renewal of 12A
Required every 5 years as per updated Income Tax regulations.
12A Linked Registration for 80G
Enables NGOs to subsequently apply for 80G certification for donor tax benefits.
Audit-Verified 12A Registration
Ensures NGOs maintain proper financial records and audits to retain exemption.
Compliance Monitoring Registration
Keeps NGOs aligned with legal and reporting requirements to prevent tax issues.
Why 12a registration Is Important?
Mandatory for Tax Exemption
Without 12A, NGOs are taxed like normal businesses on their income.
Prerequisite for 80G
Registration under 12A is mandatory to apply for 80G certification, which allows donors to claim tax deductions.
Application Process
Applications are submitted online through Form 10A or Form 10AB.
Processing Time
The registration process usually takes 1–3 months.
FAQs
Who can apply for 12A registration?
Any trust, society, or NGO engaged in charitable or religious activities can apply.
Is 12A registration permanent?
Earlier it was permanent, but as per the latest rules, it must be renewed every 5 years.
What is the difference between 12A and 80G?
12A provides income tax exemption to the NGO, while 80G gives tax benefits to the donors.
Can an NGO operate without 12A registration?
How long does it take to get 12A approval?
Generally, 1–3 months depending on the documentation and processing speed.