12A & 80G REGISTRATION

(Provisional Category & Permanent Category)

1. Introduction

12A and 80G registrations are granted by the Income Tax Department to charitable or religious organizations.

  Section 12A provides income tax exemption on the income of the NGO/Trust.

  Section 80G allows donors to claim tax exemption on donations made to the NGO/Trust.

After the Finance Act, 2020, registrations are granted under two categories:

1. Provisional Registration

2. Regular/Permanent Registration

2. 12A Registration

2.1 Provisional 12A Registration

Eligibility

  Newly formed Trust/Society/NGO not having any significant activities or audited accounts.

Validity

  Valid for 3 years from the date of registration.

  Cannot be renewed. Must apply for Permanent registration before expiry.

Documents Required

  Trust Deed / Society Registration Certificate

  PAN of the NGO

  Details of trustees/members

  Proposed plans/activities

  Estimated financials

  Incorporation and address proof

When to Apply for Permanent 12A?

Must apply at least 6 months before expiry of the provisional certificate OR within 6 months of commencement of activities, whichever is earlier.

2.2 Permanent 12A Registration

Eligibility

  NGO has completed initial activities and prepared financial statements.

Validity

  Valid for 5 years and must be renewed thereafter.

Documents Required

  Audited financial statements of last 3 years

  Activity report

  Donation details (if any)

  PAN, registration proofs, and governing documents

Benefits

  Exemption from income tax

  Eligibility to receive government funds

  Enhances donor trust and transparency

3. 80G Registration

3.1 Provisional 80G Registration

Eligibility

  Newly registered NGOs that do not yet have financial or activity history.

Validity

  Valid for 3 years.

  Cannot be renewed. Must apply for Permanent 80G before expiry.

Documents Required

  PAN of the organization

  Registration certificate and trust deed

  Director/Trustee details

  Activity/projection details

  Bank details

Benefits

  Enables donors to claim income tax deduction for donations.

3.2 Permanent 80G Registration

Eligibility

  NGOs with completed activities and available financial records.

Validity

  Valid for 5 years and must be renewed.

Documents Required

  Audited financial statements (3 years)

  Activity reports

  Donor list and receipts (if applicable)

  PAN, trust deed, registration proof

  Utility bills for address verification

Benefits

  Builds trust among donors

  Makes NGO eligible for CSR funding

  Increases funding opportunities

4. Renewal Requirements For Both 12A & 80G

Renewal must be done:

  Every 5 years for Permanent Registration.

  Online through Form 10AB.

5. Key Differences Between Provisional & Permanent Registration

Particulars Provisional Permanent

Eligibility Newly incorporated NGOs NGOs with activities & financials

Validity 3 years 5 years

Renewal Not renewable Renewable every 5 years

Form 10A 10AB

Documents Basic registration documents Full activity & audit documents

6. Conclusion

The new system ensures transparency, regular review, and accountability of NGOs. For a new NGO, Provisional 12A & 80G is the first step, followed by Permanent registration after commencement of activities and preparation of audited accounts.