Tax Exemption Certificate
Get Legal Tax Relief for Your Organization

A Tax Exemption Certificate allows NGOs, trusts, and charitable institutions in India to claim tax relief under sections like 12A and 80G of the Income Tax Act. This certification boosts credibility, encourages donor trust, and provides financial benefits through tax savings. Ensure your organization complies with legal tax norms while attracting more donations.

Get expert assistance from Udyog Suvidha Kendra and register for your Tax Exemption Certificate today.

Tax Exemption Certificate Registration

Tax Exemption Certificate Registration Application

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Tax Exemption Certificate Registration

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What is a Tax Exemption Certificate?

A Tax Exemption Certificate is an official approval from the Income Tax Department that allows NGOs, charitable trusts, and other non-profit institutions to claim tax relief on income and offer tax deductions to donors. This certificate primarily includes 12A registration, which exempts the NGO’s income from tax, and 80G registration, which allows donors to claim tax deductions on their contributions. These registrations not only help organizations save money but also attract more donations by offering tax benefits to contributors. It establishes your organization as a credible and law-abiding entity, increasing public trust and opening doors to government and CSR funding.

Understanding 12A & 80G Registration

  • 12A Registration: Grants income tax exemption to NGOs on surplus income. Without it, your organization will be taxed like any other entity.
  • 80G Registration: Allows donors to claim tax deductions on donations made to your organization, encouraging higher contributions.

Both registrations are valid for 5 years and must be renewed before expiry to continue the benefits. These registrations not only help in maximizing funds but also enhance credibility while applying for CSR funds or government schemes.

12A and 80G Registration

Why Do NGOs and Trusts Need Tax Exemption?

  • It ensures financial sustainability by reducing the tax burden on the entity.
  • Helps build public confidence and credibility among donors, CSR partners, and institutions.
  • Makes the organization eligible for government grants, corporate donations, and international funding.
  • Enables better resource allocation for social causes instead of taxes.

If your organization qualifies, get registered with the expert assistance of Udyog Suvidha Kendra and start benefiting from legal tax relief.

NGO Tax Benefits

Who Can Apply for Tax Exemption Certificate?

Organizations involved in charitable, religious, educational, or social welfare activities can apply for a Tax Exemption Certificate under Section 12A and 80G of the Income Tax Act. This certification enables tax benefits for the organization and its donors, ensuring legal compliance and financial sustainability.

Eligible Organizations for 12A & 80G

Eligible Organizations for 12A & 80G

  • Non-Governmental Organizations (NGOs)
  • Charitable Trusts
  • Societies registered under Societies Registration Act
  • Section 8 Companies (Non-Profits)
  • Religious Institutions (in some cases)
  • Educational Institutions running on a non-profit basis
    •

These organizations must not engage in profit distribution or activities that violate the charitable purpose.

Eligible Organizations for 12A & 80G

  • Non-Governmental Organizations (NGOs)
  • Charitable Trusts
  • Societies registered under Societies Registration Act
  • Section 8 Companies (Non-Profits)
  • Religious Institutions (in some cases)
  • Educational Institutions running on a non-profit basis
    •

These organizations must not engage in profit distribution or activities that violate the charitable purpose.

Key Criteria for Eligibility

Key Criteria for Eligibility

  • Must be formally registered (Trust Deed, Society, or Section 8 License)
  • Activities must be aligned with charitable or religious purposes
  • Proper financial accounts and audit records should be maintained
  • PAN card of the organization must be available
  • No income should be distributed among members or trustees

Key Criteria for Eligibility

  • Must be formally registered (Trust Deed, Society, or Section 8 License)
  • Activities must be aligned with charitable or religious purposes
  • Proper financial accounts and audit records should be maintained
  • PAN card of the organization must be available
  • No income should be distributed among members or trustees

Documents Required for Tax Exemption Certificate

To apply for a Tax Exemption Certificate under Sections 12A and 80G, the following documents are generally required. These help verify the legal standing, financial transparency, and charitable nature of your organization:

1. Registration Certificate

Trust deed, society registration certificate, or Section 8 company license.

2. PAN Card of the Organization

Permanent Account Number registered under the entity's name.

3. MOA & AOA / Trust Deed / Rules & Regulations

Governing documents outlining the objectives and structure of the organization.

4. Details of Trustees / Board Members

Name, PAN, Aadhaar, address, and designation of all managing persons.

5. Annual Financial Statements

Audited income and expenditure statements for the last 3 years (if available).

6. Activity Report

Summary of the work and initiatives carried out by the organization.

7. Bank Account Details

Cancelled cheque and account proof in the organization’s name.

8. 12A or 80G certificate (if applying for renewal)

In case you’re applying for revalidation.

9. Digital Signature of Authorized Person

For online submission through the income tax portal.

10. Utility Bill / Rent Agreement

Proof of registered office address.

Additional documents may be requested based on your organizational structure or legal status.

Step-by-Step Process for Tax Exemption Registration

Registering for a Tax Exemption Certificate under Section 12A and 80G of the Income Tax Act involves a structured process to ensure legal recognition and eligibility for tax benefits. Below is a detailed breakdown of the registration process:

1

Gather the Required Documents

Prepare key documents including NGO registration certificate, PAN card, Trust Deed or MOA & AOA, audited financial statements for the last three years, activity reports, and identity/address proof of trustees or office bearers.

2

Create an Account on the Income Tax Portal

The organization must register on the official Income Tax e-Filing Portal using its PAN. This portal is used for submitting applications, uploading documents, and tracking the registration status.

3

Fill and Submit the Relevant Application Form

● Use Form 10A for new registrations under Section 12A and/or 80G.
● Use Form 10AB for re-registration or modification of existing certificates.
Fill in details such as nature of activities, organizational objectives, financials, and governing body information.

4

Upload Documents with Digital Signature or EVC

Submit all the supporting documents along with the application. The application must be digitally signed using a Digital Signature Certificate (DSC) or verified through an Electronic Verification Code (EVC).

5

Scrutiny by the Income Tax Department

The department will verify the information and documents submitted. If required, they may raise additional queries or request clarifications. Timely and accurate responses are crucial for smooth processing.

6

Issuance of Registration Certificate

Upon successful verification, the organization will receive the 12A and/or 80G registration certificates, generally valid for a period of five years. These certificates are available for download from the Income Tax portal.

If you're eligible and want a seamless registration experience, get started with expert assistance from Udyog Suvidha Kendra.
We manage everything—from document verification to form submission and follow-ups—with complete transparency and support.

Fees & Processing Time of Tax Exemption Certificate

Understanding the cost involved and the time it takes to obtain a Tax Exemption Certificate is crucial for effective planning. Here’s a clear breakdown of both government charges and the estimated duration for approval.

Government Application Charges & Service Fees

  • Government Fees:
    There is no specific government fee for filing Form 10A or 10AB under Section 12A and 80G. However, applicants must ensure their organization’s PAN is active and all records are up to date to avoid rejections or delays.
  • Professional & Service Fees:
    While the government doesn’t charge for the application, professional assistance may involve service fees ranging from ₹5,000 to ₹15,000, depending on the complexity of your application and support required.
  • What Our Service Includes:
    • Document collection & review
    • Drafting & filing of application
    • Digital signature assistance
    • Handling clarifications from the IT department
    • Post-registration support & compliance guidance

Udyog Suvidha Kendra provides affordable and transparent pricing with no hidden charges.

Government and Service Fees

Expected Time for Approval

  • Processing Time for 12A & 80G Registration:
    Once submitted, the Income Tax Department usually takes 30 to 60 days to review and approve the application, provided all documents are correct and no clarification is needed.
  • Delays May Occur Due To:
    • Incorrect or incomplete documentation
    • Inadequate response to departmental queries
    • Technical issues on the IT portal

We recommend keeping all paperwork ready and ensuring prompt replies to avoid delays.

Approval Time

Post-Certificate Compliance & Validity

After obtaining the 12A and 80G Tax Exemption Certificates, your organization must meet ongoing compliance requirements to retain the benefits. Proper record-keeping, timely renewals, and mandatory filings ensure uninterrupted tax exemption and legal standing.

Renewal Process (if applicable)

As per the amended Income Tax Rules, registrations under 12A and 80G must be renewed every 5 years. The renewal must be applied for at least six months before expiry using Form 10AB. Organizations that fail to renew on time may lose their tax exemption status and face penalties.

Annual Filing & Reporting

To maintain compliance:
● Submit annual returns using Form 10B (if income exceeds limits).
● Maintain audit reports and books of accounts as per IT Act.
● Report all donations accurately to the Income Tax Department.
● Ensure donors receive valid donation receipts with PAN and registration details.

Non-compliance can lead to cancellation of the certificate and legal consequences. Udyog Suvidha Kendra helps you stay compliant year after year.

Why Choose Udyog Suvidha Kendra for Tax Exemption Certificate?

1

Expert Guidance & Error-Free Documentation

Our experienced team ensures all documents are accurately prepared and verified, helping you avoid common errors and rejections in the tax exemption registration process.

2

Fast Processing & Follow-Up with Authorities

We handle the entire process swiftly, from submission to coordination with tax authorities, ensuring your application moves smoothly without unnecessary delays or legal complications.

3

End-to-End Support for NGOs, Trusts & Societies

From eligibility checks to final certification, we provide complete assistance tailored to your organization type, ensuring a stress-free and reliable experience throughout the registration journey.

Tax Exemption Certificate Registration FAQs

What is a Tax Exemption Certificate for NGOs and Trusts?
A Tax Exemption Certificate, issued under Section 12A and 80G of the Income Tax Act, allows NGOs and trusts to claim income tax exemption and enables donors to avail tax deductions. It is essential for organizations seeking legal financial benefits in India.
12A provides income tax exemption to the organization itself, while 80G allows donors to claim tax deductions on their donations. Both are crucial for NGOs to operate transparently and attract more donations from individuals and corporations.
Charitable trusts, NGOs, societies, and Section 8 companies working for religious, educational, medical, or social causes are eligible. The entity must have proper registration, audited accounts, and proof of genuine charitable activities.
While not legally mandatory, 12A and 80G registration is highly recommended. Without it, the NGO cannot claim income tax exemption, and donors won’t get tax relief, making it harder to raise funds.
The average processing time is around 30–45 days after submission of all required documents. However, timelines can vary depending on application accuracy and response time from the Income Tax Department.
Key documents include the registration certificate, PAN, audited financials, trust deed or MoA, activity reports, and a valid DARPAN ID. Additional documents may be required during scrutiny for verification purposes.
Yes, the Income Tax portal allows NGOs and trusts to apply for both certificates in a single application. This saves time and simplifies the process, ensuring faster access to tax benefits and fundraising eligibility.
Yes. Under the new rules, both certificates are valid for a limited period (typically 5 years). NGOs must apply for renewal at least 6 months before expiry to continue enjoying tax benefits without interruption.
Yes. Newly registered NGOs can apply for provisional 12A and 80G certificates. Once they meet the required conditions, they can later apply for permanent registration, based on activity and financial reports.
An NGO operating without these registrations cannot claim income tax exemptions. Additionally, donations received will not be eligible for tax deduction for donors, affecting the NGO’s credibility and fundraising potential.
Yes, foreign-funded NGOs registered under FCRA can also apply for 12A and 80G to claim domestic income tax exemptions. However, both domestic and international funds must be accounted for separately and transparently.
Yes. The organization must maintain proper books of accounts and submit audited financial statements, especially if the annual income exceeds the specified threshold as per the Income Tax rules.
Udyog Suvidha Kendra simplifies the entire process—from form filling, document submission, and drafting to follow-ups and approvals—ensuring faster, error-free registration for NGOs, trusts, and societies across India.
Yes, it’s mandatory to have a valid DARPAN ID to apply for 12A and 80G. It is issued by NITI Aayog and is used for identification and verification of NGOs seeking government grants and recognition.
Yes. If your application is rejected due to errors or missing documents, you can reapply after correcting the issues. It is advisable to consult experts to avoid delays or repeated rejections.