Tax Exemption for NGOs & Trusts

Get Your
12A Registration Today.

Obtain tax exemption for your non-profit organization. Mandatory certification for NGOs, Trusts, and Societies under Income Tax Act, 1961.

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Tax Exemption for NGOs & Trusts

Get Your
12A Registration Today.

Obtain tax exemption for your non-profit organization. Mandatory certification for NGOs, Trusts, and Societies under Income Tax Act, 1961.

Satisfied NSDC Partner Verified Training Centre Registered Training Provider
+35k

Trusted by 35,000+ Businesses

Step 1/3

Start 12A Registration

Fill in the form and complete process to receive your certificate.

100% Secure & Confidential

Note: We are India's fastest growing online business services platform dedicated to helping people to start and grow their business, at an affordable cost. Our aim is to help the entrepreneur with regulatory requirements, and offering support at every stage to ensure the business remains compliant and continually growing. We are Private Organization and providing services and assistance for Business Benefits who require consultation.

What is 12A Registration?

12A Registration is a certification issued under the Income Tax Act, 1961, that provides tax exemption benefits to non-profit organizations such as NGOs, trusts, and societies. This certification allows these organizations to focus their financial resources on philanthropic activities rather than tax liabilities.

Organizations with 12A Registration can claim exemption on surplus income, provided it is used exclusively for charitable or religious purposes. This certification also strengthens credibility in the eyes of donors, government bodies, and grant providers.

Tax Exemption

Organizations can claim exemptions on surplus income used for charitable purposes.

Enhanced Credibility

Establishes legitimacy with donors, government bodies, and grant providers.

Attract Donations

Donors can claim tax deductions under Section 80G, encouraging philanthropy.

WHY IT MATTERS

Importance for NGOs & Trusts

12A Registration is crucial for non-profit organizations aiming to operate legally, transparently, and effectively in India. It provides multiple benefits that enhance operational efficiency and credibility.

Tax Exemptions

Reduces tax liabilities, allowing more funds for charity.

Credibility & Trust

Enhances legitimacy with donors and government agencies.

Attracting Donations

Required for securing grants and corporate funding.

Encouraging Philanthropy

Donors get tax benefits under Section 80G.

Legal Recognition

Provides formal identity and regulatory protection.

Long-Term Sustainability

Ensures financial stability and resource access.

12A Registration Importance
KEY ADVANTAGES

Benefits of 12A Registration

Tax Exemption on Income

One of the most significant benefits of obtaining 12A Registration is the tax exemption on income earned by the organization. Non-profit organizations that receive 12A status are not required to pay income tax on the funds they raise, as long as these funds are used for charitable purposes. This allows organizations to reinvest more resources into their mission, enhancing their overall impact and reach.

Tax Exemption on Income
Eligibility for Grants and Donations

Eligibility for Grants and Donations

12A Registration is essential for non-profit organizations to qualify for various grants, funding opportunities, and donations. Many government programs, international donors, and philanthropic organizations require 12A status before providing financial support. Furthermore, donors who contribute to 12A-registered organizations can claim tax deductions under Section 80G, making it more attractive for them to contribute. This opens up numerous funding avenues, helping the organization secure financial resources for their activities.

Long-Term Sustainability and Credibility

Having 12A Registration establishes an organization as legitimate and credible, building trust with stakeholders, including donors, government bodies, and the public. This credibility helps attract long-term financial support, ensuring that the organization can continue its charitable work effectively. The recognition of being a registered entity also boosts transparency and accountability, fostering confidence in the organization’s operations. In the long run, this enhances the organization’s ability to operate sustainably and meet its goals.

Long-Term Sustainability and Credibility

Eligibility Criteria

To qualify for 12A Registration, organizations must meet certain criteria. The registration is designed for non-profit entities that operate for charitable purposes.

Types of Organizations Eligible

Trust

A trust is a legal arrangement where trustees hold assets for charitable beneficiaries. Trusts formed for charitable purposes can apply for 12A registration.

Section 8 Companies

Non-profit companies registered under Section 8 of the Companies Act, 2013, established for charitable purposes without profit distribution.

Society

Associations registered under the Societies Registration Act, 1860, formed to promote charitable activities.

Non-Profit Organizations

Organizations working in education, healthcare, poverty relief, or social welfare, reinvesting surplus funds into their mission.

Charitable Purposes as Defined by the Income Tax Act

To qualify for 12A registration, an organisation must operate for one or more of the following charitable purposes:

  • Relief of the Poor
  • Education
  • Medical Relief / Healthcare Assistance
  • Advancement of any other object of general public utility

The organisation must not engage in commercial activities or distribute profits among members. Its primary objective must be public welfare, not private gain.

Charitable Purpose
Eligibility Conditions

Conditions for Eligibility

To qualify for 12A Registration, the organization must meet the following conditions:

  • Non-Profit Motive: The organization must operate on a non-profit basis. This means it cannot distribute any profits or income to its members, directors, or founders.
  • Public Benefit: The organization`s activities should be for the public benefit and not for the private benefit of individuals or a specific group.
  • Proper Documentation: The organization must provide the necessary documents, such as the trust deed, registration certificate, and financial statements, to prove that it meets the requirements of a charitable entity.
  • Compliance with the Income Tax Act: The organization must comply with the provisions laid out by the Income Tax Act, including maintaining proper books of accounts and filing annual returns.

Documents Required for 12A Registration

Documents Upload

Attach scanned copies of the necessary documents (Trust Deed, PAN Card, Registration Certificate, Financial Statements, etc.). Ensure they are legible and clear.

Digital Signature

If submitting the form online, a digital signature is required to authenticate the application. This ensures the application is legally valid and approved.

Application Fee

Some applications may require a small processing fee. Check the guidelines on the portal for the specific details.

Confirmation

After submission, you will receive an acknowledgement receipt. Keep this for your records.

STEP-BY-STEP

Application Process

A guided roadmap for obtaining your 12A Registration smoothly.

1

Check Eligibility

Before you begin, ensure your organisation meets the eligibility criteria for 12A registration.

2

Prepare Documents

Collect required documents such as trust deed, PAN card, and financial statements, ensuring they are updated.

3

Fill Application Form

Complete Form 10A available on the Income Tax Department’s e-filing portal with organisation details.

4

Upload Documents

Attach required documents in prescribed formats like PDF or JPG ensuring clarity.

5

Submit Application

Submit the completed form and documents through the Income Tax Department’s online portal.

Approval

Upon successful verification, the 12A Registration certificate is issued, granting tax exemption status.

STAGE 2

Online Application Process

Complete your 12A Registration through the Income Tax e-filing portal.

1

Login to the Income Tax Portal

Visit the official Income Tax e-filing portal and create an account or log in if you already have one.

2

Navigate to the 12A Registration Section

Find the "e-File" option and select the applicable section for applying for 12A Registration (Form 10A).

3

Complete the Form

Fill in all required information about the organization, such as its charitable objectives and activities.

Submit Form

After filling out the form, submit it electronically via the portal. You will receive an acknowledgement receipt for your records.

Renewal and Revocation of 12A Registration

Understanding the Validity

12A Registration is typically valid indefinitely unless specific circumstances require renewal. However, recent amendments may necessitate periodic renewal, ensuring the organization's compliance with updated regulations.

Common Reasons for Cancellation

  • Non-compliance with Income Tax Act provisions
  • Misuse of funds or diversion to non-charitable purposes
  • Failure to file mandatory returns or maintain transparency in operations.
  • Changes in the organization's objectives that no longer align with "charitable purposes".
Renewal

How to Renew or Reapply

  • Gathering Necessary Documents:

    Updated trust deeds, audited financial statements, PAN cards, and activity reports.

  • Filing the Renewal Application:

    Submit Form 10A (or applicable form) via the Income Tax Department's portal.

  • Responding to Clarifications:

    Address queries raised by the Commissioner of Income Tax during the review process.

  • Ensuring Compliance:

    Rectify past discrepancies and adhere strictly to charitable purposes.

Procedure for Obtaining 12A Registration

Once you submit your application for 12A Registration, the Income Tax Department will review your submission.

Review Process by the Commissioner

Once you submit your application, the Commissioner of Income Tax will verify the information provided. This involves a detailed scrutiny to ensure compliance and authenticity:

Verification of documents

The documents submitted such as trust deed, PAN card, financial statements etc. will be checked for compliance with the Income Tax Act.

Assessment of charitable purposes

The authority will examine whether the organisation's activities comply with the definition of charitable purposes under the Income Tax Act.

Clarification

If further information is required or there are discrepancies, the Commissioner may ask for clarification or supporting documents.

Possible Outcomes

Based on the review, the Commissioner may arrive at one of the following outcomes:

  • Approval of 12A Registration

    If all criteria are met, the organization will be granted 12A Registration, providing it with tax exemption and other benefits.

  • Request for Additional Information

    The Commissioner may request additional explanations or documentation if some aspects of the application are unclear.

  • Rejection of the Application

    Applications may be rejected due to non-compliance, insufficient documentation, or non-qualifying activities. Organizations can appeal such decisions or reapply after rectifying the issues.

Timeline for 12A Registration

The process typically takes 2–3 months from the date of application submission. However, delays may occur based on various factors.

Factors affecting timeline:

  • Accuracy of application & supporting documents
  • Promptness in responding to queries
  • Delays in internal document verification

Frequently Asked Questions

12a Registration in Major Cities

12a Registration in Major Cities