Why Every NGO Needs 12A & 80G
Section 12A gives your trust, society, or section-8 company exemption from paying income tax on its income. Without it, every donation and grant your NGO receives is treated as taxable income.
Section 80G allows your donors to claim a 50% tax deduction on their donations to your NGO. Without 80G, most donors simply won't donate — because they lose the tax benefit.
Together, these two registrations are non-negotiable for any NGO that wants to receive donations legally and gain donor trust.
Start Your ApplicationIncome Tax Portal
Donors Get 50% Deduction
With 80G, your NGO becomes eligible for CSR funding, corporate grants, and individual donations with tax benefit.
12A vs 80G: What's The Difference?
| Feature | Section 12A | Section 80G |
|---|---|---|
| Who Benefits? | Your NGO (tax exemption) | Your Donors (tax deduction) |
| What It Does | NGO's income is exempt from tax | Donors get 50% deduction on donation |
| Mandatory? | Not legally mandatory, but practically essential | Not mandatory, but needed for fundraising |
| Applied Via | Form 10A on IT Portal | Form 10G on IT Portal |
| Processing Time | 3–6 months (approx.) | 3–6 months (approx.) |
| Validity | Permanent (unless cancelled) | Permanent (unless cancelled) |
| Without It | NGO pays 30% tax on all income | Donors won't get tax benefit → fewer donations |
Who Can Apply?
Public / Private Trust
Registered under Indian Trusts Act, 1882 with a proper trust deed and registration with local registrar.
Society
Registered under Societies Registration Act, 1860 (or state equivalent) with bye-laws and governing body.
Section 8 Company
Registered under Companies Act, 2013 with Section 8 license from ROC. Must have charitable objects.
Documents You Need
Most documents are things you already have from your registration. We'll tell you exactly what's missing.
Get Document Checklist12A & 80G Document Checklist
- Trust Deed / MOA & AOA — Self-certified copy
- Registration Certificate — From trust registrar, society registrar, or ROC
- PAN of the NGO — Must be in the name of the trust/society/company
- PAN & Aadhaar of Trustees / Members — All governing body members
- Address Proof of NGO — Ownership proof or rent agreement + NOC from owner
- Governing Body Resolution — Authorizing specific person to apply online
- Bye-Laws / Rules & Regulations — For societies and section-8 companies
- Objectives & Activities — Detailed description of charitable objects
- Activity Report (if applicable) — Brief report of activities since registration
- Financial Statements (if applicable) — If the NGO has been operating for some time
How We Get It Done
Consult
Understand your NGO type and check eligibility.
Documents
Collect and verify all required documents.
Prepare Form
Fill Form 10A (12A) and Form 10G (80G) accurately.
Submit
File online on Income Tax portal on your behalf.
Follow Up
Track with CIT(E) office, respond to any queries.
Certificate
Registration certificate received — you're done.
How Much Deduction Do Donors Get?
50% Deduction
Most NGOs get 80G with 50% deduction. If someone donates ₹10,000, they save ₹3,000 in tax (at 30% slab × 50% deduction rate).
100% Deduction
Only specific entities get this — PM Relief Fund, notified bodies, government-approved funds. Regular NGOs cannot get 100% deduction under 80G.
Cash Donation Limit
For donations above ₹2,000, only donations via bank transfer, cheque, or draft qualify. Cash above ₹2,000 is not eligible for 80G deduction.
Why Applications Get Rejected
Unclear Objectives
Trust deed objects are vague or not purely charitable. Objects must clearly mention charitable purpose — relief of poor, education, medical, etc.
No Real Activity
NGO is registered but has no genuine activities. CIT(E) checks if the NGO is actually working towards its stated objects.
Missing Documents
Incomplete forms, missing resolutions, wrong PAN, or unsigned documents. We double-check everything before submission.
Private Benefit
If trust deed allows benefit to trustees or specific individuals, it's not "charitable" in the eyes of law. Objects must be for general public benefit.
Non-Compliance
Existing NGOs that haven't filed ITR-7 or annual returns — this raises red flags. We check compliance status before applying.
Wrong Form Filling
Form 10A has specific fields about activities, funds, and governing body. Wrong or inconsistent data leads to show-cause notices.
Common Questions
Not legally mandatory, but practically yes. Without 12A, your NGO's entire income (donations, grants, interest) is taxable at normal rates. For an NGO receiving even ₹5-10 Lakhs annually, that means paying ₹1.5-3 Lakhs in tax — money that should go to your cause. 12A makes your income tax-free.
Typically 3 to 6 months from the date of submission. The application is filed online on the IT portal, processed by the Commissioner of Income Tax (Exemption), and sometimes a physical hearing or additional documents are requested. We handle all follow-ups on your behalf.
Yes. A newly registered trust or society can apply for 12A immediately after registration. You don't need to wait or show years of activity. However, the objects must be clearly charitable and the trust deed must be properly drafted. We review your trust deed before applying to minimize rejection risk.
Yes, and we recommend it. Both applications can be filed simultaneously on the IT portal. This saves time and ensures your NGO is fully compliant from the start — both tax-exempt and donor-friendly.
Yes, once granted, 80G registration is permanent unless cancelled by the CIT(E). Cancellation can happen if the NGO misuses funds, changes its objects to non-charitable purposes, or fails to file annual returns (ITR-7). As long as you maintain compliance, it stays valid.
Yes, absolutely. Having 12A does not exempt you from filing returns. Every NGO with 12A registration must file ITR-7 every year, even if income is zero. Non-filing for 3 consecutive years can lead to cancellation of 12A registration. We handle ITR-7 filing as a separate service.
Form 10A is the application form for 12A registration. Form 10G is the application form for 80G registration. Both are filed online on the Income Tax portal. They require details about your NGO's registration, objects, activities, governing body, and financial information.
Yes. The CIT(E) can cancel 12A registration if: (1) NGO's activities are not charitable, (2) Funds are used for non-charitable purposes, (3) NGO doesn't file ITR-7 for 3 consecutive years, (4) Trust deed objects are violated. Cancellation has serious consequences — all income from the year of cancellation becomes taxable.
Your NGO Needs These Registrations.
Don't Delay.
Every day without 12A means paying tax on donations. Every day without 80G means losing potential donors. Start your application today.