12A and 80G Registration for NGOs and Societies: Eligibility, Process, and Donor Tax Benefits

NGOs, trusts, and societies frequently conflate two registrations that serve genuinely different purposes — one exempts the organisation's own income, the other gives its donors a personal tax benefit. Both usually matter, but they're not the same thing.

Section 12A/12AB — The NGO's Own Income Tax Exemption

Registration under Section 12AB (which replaced the earlier 12A/12AA registration system) exempts the NGO's own income from tax, provided the income is applied toward the organisation's charitable objects. Without this registration, an NGO's income — even if used entirely for charitable activity — is taxable in the organisation's own hands like any other entity's income.

Eligible entity types: Trusts (public charitable/religious), Societies registered under the Societies Registration Act, and Section 8 Companies. The organisation's objects must fall within the definition of "charitable purpose" — relief of the poor, education, medical relief, preservation of environment, or advancement of any other object of general public utility (with specific restrictions on commercial activity under the "general public utility" head).

Section 80G — The Donor's Tax Deduction

Section 80G registration allows a donor contributing to the NGO to claim a deduction (50% or 100% of the donated amount, depending on the specific approval category, subject to a qualifying limit for some categories) in their own income tax return. This is entirely separate from 12A — an NGO can have 12A (its own exemption) without 80G (no donor benefit), and this materially affects fundraising, since many donors — especially corporates fulfilling CSR obligations or individuals seeking a tax benefit — specifically ask for 80G-eligible receipts before donating.

Both Registrations Are Now Time-Limited and Require Renewal

Since the 2020 overhaul of the registration regime, both 12AB and 80G registrations are no longer permanent — they're granted for a limited period (typically 5 years for an established organisation, provisional registration for 3 years for a new one) and must be renewed before expiry. Missing the renewal window causes the organisation to lose exemption from the date of expiry, not just going forward from when the lapse is noticed — this has caught out several established NGOs who assumed their older, previously "permanent" registration still held after the rule change.

Application Process (Post-2020 Regime)

1. Incorporate the entity first — Trust deed, Society registration, or Section 8 Company incorporation, as appropriate to your structure
2. Apply for provisional 12AB registration (Form 10A) if newly set up, or regular registration if already operational with some track record
3. Apply for 80G approval (also via the unified form process) — can be done alongside or after 12AB, though most organisations pursue both together given how closely donor fundraising depends on 80G
4. Before the provisional/current registration expires, apply for renewal (Form 10AB) — typically 6 months before expiry for provisional registration converting to regular, or before the regular registration's own expiry

FCRA — A Separate Consideration for Foreign Donations

If the NGO expects to receive donations from foreign sources (individuals, organisations, or governments outside India), a separate registration under the Foreign Contribution Regulation Act (FCRA) is required — this is entirely independent of 12A/80G and has its own compliance regime (a dedicated FCRA bank account, specific utilization reporting, and its own renewal cycle). An NGO receiving only domestic donations doesn't need FCRA, but should specifically evaluate this before accepting even a single foreign contribution, since accepting foreign funds without FCRA registration is a serious compliance breach with real consequences, not just a paperwork gap.

Practical Compliance Checklist

• Confirm entity structure (Trust/Society/Section 8 Company) is properly registered before applying for 12AB
• Apply for 12AB and 80G together where possible, given how closely they're linked for practical fundraising
• Track renewal deadlines actively — both registrations now lapse if not renewed in time, unlike the old permanent-registration regime
• Evaluate FCRA registration need before accepting any foreign donation, not after

Getting both registrations in place — and tracking their renewal cycle — is foundational to an NGO's ability to both operate tax-efficiently and fundraise credibly. Our compliance team supports Trust, Society, and Section 8 Company registration and 12A/80G filing for new and existing NGOs.