Section 12A Registration for NGO / Trust

Last updated: 3 June 2026

Section 12A (now Section 12AB) of the Income Tax Act 2025 grants income tax exemption to charitable trusts, NGOs, religious organisations, and Section 8 companies. Without this registration, the organisation's entire surplus is taxed at the maximum marginal rate — nullifying the purpose of non-profit operations.

Nil Tax

A registered charitable trust with Section 12AB status pays zero income tax on income applied to charitable purposes — provided the conditions of Sections 11 and 12 of the Income Tax Act 2025 are met.

What Is Section 12A / 12AB Registration?

Sections 11 and 12 of the Income Tax Act 2025 exempt income of trusts and institutions that are established for charitable or religious purposes — but only if the organisation is registered under Section 12AB. The registration essentially certifies to the Income Tax department that the entity is genuinely charitable and that its income is applied for stated purposes.

The Finance Act 2020 replaced the old Section 12A with the new Section 12AB regime, which introduced periodic renewal and stricter documentation. All organisations — new and existing — are now required to be registered under Section 12AB.

Types of Organisations Eligible for 12AB Registration

Entity Type	Eligible?	Governing Law
Public Charitable Trust	Yes	Indian Trusts Act / State trust Acts
Religious Trust	Yes (if not wholly religious)	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

12A vs 12AB — Key Differences

Feature	Old Section 12A	New Section 12AB
Validity period	Lifetime (no renewal needed)	5 years (new orgs); 5 years (existing orgs after migration)
Application form	Form 10A (old)	Form 10A (new registration); Form 10AB (renewal)
Applicable from	Pre-2020 regime	April 1, 2021 onwards
Provisional registration	Not available	Available for 3 years for new/unregistered entities
Scrutiny level	One-time registration	Periodic verification at renewal

Step-by-Step Process to Apply for 12AB Registration

Step 1 — Obtain PAN: Ensure the trust/NGO/society has a PAN in the name of the institution (not the trustee personally).

Step 2 — Login to Income Tax Portal: Access the Income Tax e-filing portal (incometax.gov.in) using the institution's PAN credentials.

Step 3 — File Form 10A: Navigate to e-File → Income Tax Forms → Form 10A. Select the relevant clause under Section 12AB. Attach all supporting documents in PDF format.

Step 4 — Verification: Digitally sign using DSC or verify using EVC. Submit the form.

Step 5 — CIT Processing: The Commissioner of Income Tax (Exemptions) will process the application. For provisional registration, an order is issued within 1 month. For regular/full registration, the order is issued within 6 months after the organisation has been in operation for at least 1 year.

Documents Required for Form 10A

Document	Purpose
Trust deed / MoA & Rules & Regulations / Bye-laws	Establishes charitable objects and structure
Registration certificate (Charity Commissioner / Registrar of Societies / ROC)	Proof of legal existence
PAN of institution	Mandatory identifier
PAN and Aadhaar of all trustees/directors/office bearers	KYC of key persons
Financial statements — last 3 years (audited, if applicable)	Track record of activity and fund application
Activity report — last 3 years	Evidence of actual charitable work
Details of immovable properties	Disclosure of assets
List of contributors — amount ≥₹50,000	Donor disclosure
No Objection Certificate from existing CIT(E) (for re-registration)	Required where jurisdiction transfers

Section 12AB vs Section 80G — How They Work Together

These are two separate but complementary registrations:

Section 12AB — exempts the NGO/trust's own income from income tax
Section 80G — enables donors to claim a deduction (50% or 100%) on donations made to the NGO

Both can be applied simultaneously using Form 10A. Most organisations should apply for both. A 12AB registration without 80G means the NGO is tax-exempt, but cannot attract donors who want a tax benefit — which limits fundraising significantly.

Consequences of Non-Registration or Lapsed Registration

If Section 12AB registration is not obtained or lapses without renewal, the organisation loses its exempt status. The entire income (including grants, donations, corpus contributions) becomes taxable in the hands of the trust/NGO at the maximum marginal rate applicable to AOP/BOI. Additionally, accumulation of income under Section 11(2) (up to 15% of income for future application, or specific purpose accumulation over 5 years) is not available. The financial impact can be severe for organisations with large corpus or regular donor inflows.

Frequently Asked Questions

What is the difference between Section 12A and Section 12AB registration?

Section 12A was the original provision under which trusts and NGOs registered for income tax exemption. The Finance Act 2020 replaced it with Section 12AB, which requires all existing and new organisations to obtain fresh registration under the new regime. Section 12A registration (for legacy organisations) was valid for their lifetime without renewal, whereas 12AB registration is valid for 5 years (for new organisations and those applying for the first time) and must be renewed. The practical difference is that 12AB has stricter documentation, periodic renewal, and is tracked through Form 10A (new) or Form 10AB (renewal).

Can a Section 8 Company apply for 12AB registration?

Yes. Section 12AB registration is available to any fund, trust, institution, university, educational institution, hospital, or medical institution. A Section 8 Company incorporated under the Companies Act 2013 (the not-for-profit company structure) is fully eligible to apply for registration under Section 12AB of the Income Tax Act 2025. The conditions — objects of the institution being charitable, and income being applied for those charitable purposes — apply equally to Section 8 Companies.

What happens if an NGO does not have 12A/12AB registration?

Without 12A or 12AB registration, the income of the trust or NGO is treated as regular income and taxed at the maximum marginal rate (currently 30% for AOP/BOI/trust at slab applicable). The organisation also loses the benefit of the accumulation provision under Section 11(2) — it cannot carry forward surplus income for application in future years. Furthermore, donors cannot claim 80G deduction for donations made to the organisation unless it separately holds an 80G registration.

How long does it take to get 12AB registration and what documents are needed?

The Income Tax department is required to pass an order on Form 10A within 1 month of receipt, granting provisional registration valid for 3 years. Full/regular registration under Form 10AB (after commencement of activities) is to be granted within 6 months. Key documents required: Trust deed/Memorandum of Association and Rules; PAN of the institution; Registration certificate from Charity Commissioner or Registrar of Societies; Details of trustees/directors (PAN, Aadhaar); Financial statements for last 3 years (if applicable); Activity report; Details of immovable property; Statement of receipts and payments.

Is 12A registration the same as 80G registration? Must both be applied for together?

No, 12A/12AB and 80G are separate registrations serving different purposes. Section 12A/12AB grants income tax exemption to the NGO itself — its own income is not taxed. Section 80G allows donors to claim a deduction (50% or 100% of donation) when they donate to the NGO. Most organisations apply for both simultaneously (using Form 10A which covers both), as 80G is needed to attract donations from taxpayers who want a tax benefit. Having 12AB without 80G means the NGO pays no tax on its income, but donors cannot claim any deduction.

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