12A registration is a crucial tax exemption available to non-governmental organizations (NGOs), charitable trusts, and societies in India. Under Section 12A of the Income Tax Act, 1961, NGOs can avail tax exemption on their income, allowing them to utilize more funds for charitable activities. Without 12A registration, an NGO’s income is taxable like any other business entity.
In this article, we will explain where and how to register for 12A registration and its benefits for NGOs.
Where to Register for 12A Registration?
NGOs must apply for 12A registration through the Income Tax Department of India. The application is processed by the Commissioner of Income Tax (Exemptions), which verifies the NGO’s documents and operations before granting 12A approval.
🔹 Online Registration: NGOs can apply for 12A registration via the Income Tax e-Filing portal (www.incometax.gov.in).
🔹 Offline Registration: NGOs can also submit a physical application to the local Income Tax Commissioner (Exemptions) office.
How to Register for 12A Registration?
The process of 12A registration involves several steps and requires submission of specific documents. Below is a step-by-step guide:
Step 1: Prepare the Required Documents
To apply for 12A registration, the NGO must submit the following documents:
✔ PAN Card of the NGO
✔ Trust Deed (For Trusts) or Memorandum of Association (MoA) & Articles of Association (AoA) (For Societies/Companies)
✔ Registration Certificate of the NGO (Issued under Societies Registration Act, Indian Trusts Act, or Companies Act)
✔ Details of Key Members & Trustees (ID & Address Proof)
✔ Audited Financial Statements of the Last 3 Years (If applicable)
✔ List of Activities & Objectives of the NGO
✔ Bank Account Details of the NGO
Step 2: File Form 10A
The application for 12A registration is submitted through Form 10A on the Income Tax e-Filing Portal.
🔹 Log in to www.incometax.gov.in using the NGO’s PAN details.
🔹 Select “Income Tax Forms” and choose Form 10A for 12A registration.
🔹 Fill in details about the NGO, including its registration number, objectives, and financial information.
🔹 Upload the required documents and submit the form.
Step 3: Verification by Income Tax Department
Once Form 10A is submitted:
✔ The Income Tax Commissioner (Exemptions) reviews the application.
✔ The department may request additional clarifications or documents.
✔ If satisfied, the commissioner issues a 12A registration certificate, making the NGO tax-exempt.
🟢 Processing Time: It usually takes 1-3 months to receive the 12A registration certificate.
Benefits of 12A Registration
Getting 12A registration provides multiple benefits to NGOs, enabling them to save taxes, attract funding, and expand their social impact.
1. Tax Exemption on NGO Income
✔ 100% exemption on NGO income, allowing more funds for charitable work.
✔ No income tax is charged on donations and grants received.
2. Eligibility for 80G Registration
✔ 80G registration (which provides tax benefits to donors) can be obtained only after 12A registration.
✔ Attracts more donations, as donors can claim tax deductions.
3. Increased Credibility for NGOs
✔ NGOs with 12A registration are more trusted by donors, corporate CSR funds, and government agencies.
✔ Helps in securing foreign funding and grants.
4. Eligibility for Government Grants & Funding
✔ Many government schemes and CSR funds require NGOs to have 12A registration to apply for financial aid.
✔ Provides access to funding from NITI Aayog, ministries, and international organizations.
5. Long-Term Validity & Compliance Benefits
✔ Once registered, 12A approval is valid for a lifetime, eliminating the need for frequent renewals.
✔ Ensures financial transparency and compliance with the Income Tax Act.
Conclusion
12A registration is an essential tax exemption for NGOs, allowing them to operate without paying income tax and attract more funding. The registration process is straightforward, requiring submission of Form 10A on the Income Tax e-Filing portal along with necessary documents.
With 12A registration, NGOs can enhance credibility, secure funding, and maximize their impact on society. If your NGO is not yet registered under 12A, applying for it should be a priority to benefit from tax exemptions and financial growth. 🚀
