12A Registration (NGO Tax Exemption)
Get 12A certification to exempt your NGO, Trust, or Section 8 Company’s income from direct income tax.
Overview
By default, the income of an NGO (donations, grants, operational income) is taxable under the Income Tax Act. To avoid paying taxes and to ensure that 100% of the funds are utilized for charitable purposes, the NGO must obtain registration under Section 12A. This is a one-time registration (with subsequent renewals under new IT rules) that legally exempts the organization’s surplus income from taxation, provided the income is applied towards the stated charitable objects.
What is Included in Our Package
Detailed compliance and filing scope managed by JRC corporate experts.
Documents Required to Start
Upload digital files during onboarding. No physical submissions needed.
Entity Documents
- Registration Certificate (Trust Deed / Society Registration / Section 8 COI)
- PAN Card of the NGO
- List of Governing Body members with their PAN and Aadhaar
Operational Documents
- Detailed note on the charitable activities
- Audited Financial Statements for the last 3 years (if applicable)
- NOC from the landlord for the registered office
Step-by-Step Registration Timeline
Our step-by-step advisory workflow.
Step 1: Document Review
We review your deed to ensure it contains the required charitable clauses.
Step 2: Form 10A Submission
We file Form 10A for provisional registration (or 10AB for final registration if activities have commenced).
Step 3: Income Tax Scrutiny
The IT department reviews the application to verify the genuineness of the charitable activities.
Step 4: Certificate Issuance
The 12A Certificate is issued, and your NGO’s status is updated on the national IT database.
Key Advantages of 12A Registration
12A is the foundational tax certificate for any serious charitable organization.
Complete Income Tax Exemption
Enjoy 100% tax exemption on the income received by the Trust/NGO, allowing more funds to be routed to social causes.
Utilization Flexibility
You are permitted to accumulate up to 15% of your income for future charitable use without it being taxed.
Prerequisite for Government Grants
Most state and central government departments mandate 12A registration before approving any grants or funding.
Frequently Asked Questions
Helpful answers to common regulatory inquiries.
Is 12A registration valid for a lifetime?▼
Under the old regime, it was valid for a lifetime. However, under the new rules (effective 2021), Final 12A registration is valid for 5 years and must be renewed 6 months before expiry.
Can private family trusts apply for 12A?▼
No. 12A exemption is strictly available only to "Public Charitable Trusts". Private trusts created for the benefit of specific family members do not qualify.
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