What is Section 12A?

Section 12A of the Income Tax Act, 1961 allows charitable and non-profit organizations to claim tax exemption on their income under Sections 11 and 12.

Eligible entities include:

• Charitable Trusts

• Welfare Societies

• Non-Profit Organizations (NGOs)

• Religious Institutions

• Educational Institutions

Registration under Section 12A is essential to:

• Claim income tax exemption

• Receive government grants

• Accept funding from international organizations

Without 12A registration, income of the trust becomes taxable.

What is Section 80G?

Section 80G provides tax deductions to donors who contribute to eligible charitable institutions.

Key benefit:

• Donors can claim deduction on donations made to registered institutions.

• Encourages higher contributions and financial support.

Together, Sections 12A and 80G provide dual benefits:

• Tax exemption for the trust

• Tax deduction for the donor

Difference Between Section 12A and Section 80G

Section 12A	Section 80G
Provides tax exemption to charitable institutions	Provides tax deduction to donors
Applies to income of the trust	Applies to donation made by donor

Key Changes Introduced by the Finance Act, 2020

• Section 12AA has been replaced by Section 12AB.

• Entire registration process is now online.

• Registration is valid for 5 years and must be renewed.

• Provisional registration is granted for 3 years for new institutions.

• All existing NGOs registered before 1st April 2021 must reapply under the new system.

Forms Introduced – 10A and 10AB

Applications for registration must be submitted electronically to the Principal Commissioner through prescribed forms.

When to Use Form 10A

Form 10A is used for:

Existing Institutions

• Revalidation of registration under Section 12A/12AA/10(23C)/80G

New Institutions

• Application for provisional registration under Section 12AB/10(23C)/80G

When to Use Form 10AB

Form 10AB is required for:

• Conversion of provisional registration into regular registration

• Renewal after 5 years

• Re-registration due to change in objects

• Activation of inoperative registration

Documents Required for 12A & 80G Registration

The following details and documents are needed:

• Income Tax portal login credentials

• PAN card copy

• Mobile number and email ID

• Registration certificate of the trust

• Trust Deed and MOA

• List of objects (original or modified)

• Nature of activities

• DARPAN registration details (if applicable)

• FCRA registration details (if applicable)

• Details of trustees/settlor/members (PAN, Aadhaar, address, contact details)

• Financial statements (since inception or last 3 years)

• Existing 12A/12AA/12AB/80G registration certificate (if any)

Registration Process Under Sections 12A & 80G

The process can be divided into three categories:

1. Re-Registration

Who Must Apply?

All institutions previously registered under:

• Section 12A

• Section 12AA

• Section 80G

• Section 10(23C)

• Section 35AC

must apply for re-registration.

How to Apply?

• File Form 10A through the Income Tax e-filing portal.

What Happens After Approval?

• A Unique Registration Number (URN) is issued electronically.

• Registration certificate is granted.

Validity

• Registration is valid for 5 years.

Important Note for 80G

Separate application in Form 10A is required for 80G approval.

Due Date for Re-registration

The original due date for re-registration was 31st March 2022.

2. Provisional Registration (For New Trusts)

Who Should Apply?

Newly formed trusts seeking registration under 12A/12AB or 80G.

How to Apply?

• File Form 10A online.

• Provisional registration granted for 3 years.

When to Apply?

• At least one month before the start of the financial year in which activities will commence.

Timeline for Approval

• Order is passed within one month from the end of the month of application.

3. Renewal of Registration

When to Apply?

• At least 6 months before expiry of 5-year registration.

Approval Process

The Commissioner verifies:

• Genuineness of activities

• Compliance with applicable laws

If satisfied:

• Renewal granted for 5 years.

If not satisfied:

• Application may be rejected and registration revoked.

Timeline for Order

• Within 6 months from the end of the month of application.

How MAG Can Help

Looking to obtain 12A and 80G registration smoothly and efficiently?

MAG offers expert consultation and end-to-end assistance in:

• Filing Form 10A / 10AB

• Re-registration under 12A & 80G

• Renewal of registration

• Provisional registration for new trusts

• Compliance support and documentation

Our experienced professionals ensure a faster, hassle-free registration process while ensuring complete procedural compliance.