Section 12A (now Section 12AB) registration exempts a charitable or religious trust, society, NGO or Section 8 company from income tax on income applied to its objects. New entities file Form 10A for provisional registration valid 3 years; regular registration on Form 10AB is valid 5 years — extended to 10 years from FY 2025-26 for trusts whose income did not exceed ₹5 crore in each of the two preceding years. Without it, the trust's surplus is taxed at the maximum marginal rate.
What Is Section 12A / 12AB Registration?
Sections 11 and 12 of the Income-tax Act exempt the income of trusts and institutions set up for charitable or religious purposes — but only if the organisation holds a valid registration under Section 12AB. The registration certifies to the Income-tax Department that the entity is genuinely charitable and that its income is applied to its stated objects.
The Finance Act 2020 replaced the old Section 12A/12AA regime with Section 12AB (effective from AY 2022-23), introducing time-limited registration and periodic renewal. The Income-tax Act, 2025 (in force from AY 2026-27) re-codifies the same exemption scheme — the well-known "12A/12AB" reference and Form 10A / 10AB process continue in practice.
"Section 12A registration" remains the search-familiar term, but every fresh registration since April 2021 is technically granted under Section 12AB. Legacy 12A/12AA registrations had to migrate to 12AB by re-applying on Form 10A. If your certificate still says 12A/12AA, it needed migration.
Entities Eligible for 12AB Registration
| Entity type | Eligible? | Governing law |
|---|---|---|
| Public charitable trust | Yes | Indian Trusts Act / State trust Acts |
| Religious trust (not wholly religious) | Yes | Indian Trusts Act / Waqf Act etc. |
| Society (NGO) | Yes | Societies Registration Act 1860 |
| Section 8 company (not-for-profit) | Yes | Companies Act 2013 |
| University / educational institution | Yes | UGC Act / State Acts |
| Hospital / medical institution | Yes | State medical regulations |
The entity must have charitable/religious objects and actually apply its income to those objects to keep the exemption.
Section 12A vs Section 12AB
The old Section 12A gave lifetime registration with no renewal. The Section 12AB regime made registration time-limited and reviewable, so every organisation — new and existing — must hold a live 12AB registration.
Old regime (pre-2021)
- Lifetime validity — no renewal
- One-time scrutiny at registration
- No provisional stage
- Form 10A (old format)
- Had to migrate to 12AB
Current regime
- Provisional 3 yrs, then regular 5 or 10 yrs
- Periodic verification at renewal
- Provisional registration for new entities
- Form 10A (new) / Form 10AB (renewal)
- Applies to every trust & NGO now
| Feature | Old Section 12A | Section 12AB (current) |
|---|---|---|
| Validity | Lifetime | Provisional 3 yrs; regular 5 yrs (10 yrs from FY 2025-26 if income ≤ ₹5cr in each of 2 preceding yrs) |
| Application form | Form 10A (old) | Form 10A (new registration) / Form 10AB (renewal & conversion) |
| Provisional registration | Not available | Available — 3 years for new / not-yet-active entities |
| Renewal | Not required | Apply at least 6 months before expiry |
| Scrutiny | One-time | Verification at each renewal |
Finance Act 2025 extended regular validity from 5 to 10 years for smaller trusts (income ≤ ₹5cr each of the two preceding years) applying after 31 March 2025.
Not sure whether your certificate is valid or needs renewal?
Get Your 12AB Status Checked →How to Apply for 12AB Registration
The application is filed entirely online on the Income-tax e-filing portal in Form 10A (first-time / provisional) or Form 10AB (renewal or conversion of provisional to regular).
- 1PAN in trust nameObtain PAN of the institution, not the trustee
- 2Portal loginLog in to incometax.gov.in with the entity PAN
- 3File Form 10ASelect the 12AB clause & attach documents
- 4e-VerifySign with DSC or verify by EVC
- 5CIT(E) orderRegistration certificate issued
- Provisional registration — the CIT (Exemptions) is to pass an order within 1 month, valid for 3 years.
- Regular registration (Form 10AB, after activities begin) — order within 6 months, valid 5 years (10 years for smaller trusts from FY 2025-26).
- Existing/active organisations apply directly for regular registration once they have a track record.
- Renewal must be filed at least 6 months before the current registration expires.
A 12AB registration is not automatic — you must re-apply on Form 10AB at least six months before expiry. If it lapses, the trust loses exemption for that year and its entire income (grants, donations, corpus) becomes taxable at the maximum marginal rate.
Documents Required for Form 10A
| Document | Purpose |
|---|---|
| Trust deed / MoA & rules / bye-laws | Establishes charitable objects and structure |
| Registration certificate (Charity Commissioner / Registrar of Societies / ROC) | Proof of legal existence |
| PAN of the institution | Mandatory identifier |
| PAN & Aadhaar of trustees / directors / office bearers | KYC of key persons |
| Financial statements — last 3 years (if applicable) | Track record of activity and fund application |
| Activity report — last 3 years | Evidence of actual charitable work |
| Details of immovable property | Disclosure of assets |
| List of contributors (≥ ₹50,000) | Donor disclosure |
A new entity yet to begin activities applies for provisional registration and files fewer historical documents.
Section 12AB & Section 80G
12AB and 80G are separate registrations. 12AB exempts the NGO's own income; 80G lets donors claim a deduction (50% or 100%) on their donations. Most organisations apply for both together via Form 10A.
✓Apply for both 12AB + 80G if
- You want the NGO's income tax-exempt
- You raise funds from public / corporate donors
- Donors expect a tax-deductible receipt
- You plan CSR or grant funding
!12AB alone may suffice if
- The trust is fully self-funded from corpus
- You do not solicit outside donations
- No donor needs an 80G deduction
- You will add 80G later as fundraising grows
Without a live 12AB registration the trust loses exempt status: its entire income is taxed at the maximum marginal rate applicable to an AOP, and the accumulation benefit under Section 11(2) is lost. Donors also cannot claim 80G on their gifts.
Ready to register your trust or NGO for 12AB and 80G?
Start 12AB + 80G →- Income-tax portal & Form 10A/10AB: incometax.gov.in
- Exemption scheme: Sections 11, 12, 12A & 12AB, Income-tax Act 1961 (re-codified in the Income-tax Act 2025)
- 12AB regime: Finance Act 2020
- 5→10-year validity for smaller trusts: Finance Act 2025 (effective 1 Apr 2025)
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.