12AB Registration Certificate for NGO Tax Exemption Benefits on NGO’s Income

12AB registration is a registration which is granted by the Income Tax Department to trusts and other not for profit organisations. The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation. Section 8 Companies, Trusts and NGOs which have obtained 12A registration enjoy exemption from paying income tax on their surplus income. Get these registrations at lowest prices NOW!!!

Get Your 12AB Certificate for Your NGO @ ₹8,999


Packages for 12A and 80 G Registration

Basic Package

₹8,999/-

Standard Package

₹10,999/-

Premium Package

₹17,999/-

Customize Package

We understand that every business may have unique requirements; Kindly let us know if you need a customised quotation.

Documents required for 12AB Registration

Below is the list of documents required for the 12AB & 80G Registration Online:

  1. Section 8 Company/ Society/ Trust registration documents.
  2. Directors or Trustee’s PAN Card.
  3. Aadhar Card of the directors or trustees.
  4. Trust Deed (in the case of a Trust) or Memorandum of Understanding (MOA), Articles of Association (AOA) of the Company (in the case of a Society/Section 8 Company).
  5. Balance Sheet, Profit and Loss account and Audit Reports of all years since incorporation of the Section 8 NGO/Trust/Society.
  6. A comprehensive list of welfare activities.
  7. PAN Card of Organization
  8. Unique ID of Niti Aayog Registration

Looking to start the Process? Contact our Tax Management Experts

12AB Registration

NGOs have multiple options to select the form of constitution, like trust, society and section 8 company. In order to claim exemptions under section 11 & 12 of Income Tax Act, 1961, it is mandatory for all NGOs to get registration under section 12A of the act. “It is important to note here that notwithstanding the fact that trust, society and section 8 companies are registered as per their respective acts, the registration under section 12A is necessary to claim exemption under Income Tax Act.”

Earlier registration under 12A was given as one-time registration and once the registration is granted it will hold good till cancellation. From 1st April 2021, all new registration will be given for 5 years only and organisation has to apply for renewal after each 5 years.

Benefit of 12A Registration

MORE FUNDS TO WORK

Through the tax exemption on NGO income, more capital will now be available for charitable purposes as it will attract more donors.

NEW SOURCES OF FUNDS

Recognized agencies, government, and international sources of funds and grants are permitted after getting 12AB & 80G registration.

BROADENS THE SCOPE OF NGO

Since, more donors are attracted for charity purpose as that amount is exempted from Tax, this broadens the scope of the NGO’s mission as more donations are now available for charity.

FCRA FUNDINGS

Only 12AB and 80G registered NGOs are allowed to accept International funding, with exceptions available under the Foreign Regulation Act, 2010 (FCRA).

MORE EXPOSURE

When an NGO registers and receives 12AB and 80G registrations, it gains more operational exposure and status value.

VALIDITY

The validity of Provisional 12AB & 80G registrations is 3 years. The renewal of these registration must be done 6 months prior to the expiry of these certificates.

Eligibility for 12AB Registration

  1. In order to qualify for registration under Section 12A, the organisation should meet the definition of charitable purpose as defined in the Income Tax Act. Charitable purpose means relief to the poor, education, medical relief and activities undertaken with the objective of preserving the environment. The pursuit of any other objective of a public utility will also qualify for a charitable purpose.
  2. The primary qualifying criterion will be to check whether there is any profit motive involved in the activities carried on by the assessee. In the absence of a profit motive, registration shall be granted.
  3. If the assessee is carrying on activities related to trade or commerce, then the facility granted under this section is restricted. In such cases, registration is granted exclusively if the receipts from the trade activity are less than twenty per cent of the total receipts of the assessee.
  4. Also, it may be noted that 12A Registration is not applicable for Private or Family Trusts. The activities of the assessee should be genuinely for the benefit of the public.

Validity of 12A Registration

Earlier registration under 12A was given as one-time registration and once the registration is granted it will hold good till cancellation. From 1st April 2021, all new registration will be given for 5 years only and organisation has to apply for renewal after each 5 years.

Frequently Asked Questions

For new 12A and 80G registrations, they can be filed immediately upon incorporation.

We can apply for 12A and 80G soon after the Trust is registered. If in case the customer is applying after a year or two then their ITR is required.

The process is 100% online. So, it doesn’t require your physical presence at any stage. Relax in the comfort of your home while we take care of everything.

Yes, you can apply for them separately in which case you have to apply for 12A first. However, doing them together is easier.

Earlier, 80G and 12A registrations were valid for the lifetime of an organisation. Now, in the case of provisional registration, the validity of 80G and 12A registrations has been kept at 3 years, or for 3 years from the commencement of activities, whichever is earlier and, in case of re-validation, the validity is 5 years.