Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
No registration, no exemption
The Section 11/12 exemption that makes a charitable trust tax-free is conditional on 12AB registration. Without it, the trust is not exempt — its income (donations, surplus) is taxable, broadly like an association of persons, so the money meant for charity is eroded by tax.
And no 80G for donors
Unregistered status also means the trust generally cannot offer donors the 80G deduction (which is a separate but related approval), making it much harder to attract donations. So non-registration hits both the trust’s own tax and its fundraising. Some receipts may still be treated as corpus/capital — confirm the exact taxability.
A worked example
Example: a trust that never registered under 12AB receives ₹20 lakh of donations and runs a surplus — that surplus is taxed, and donors get no 80G benefit, so giving dries up. A registered peer keeps its surplus tax-free and attracts 80G donors. For any genuine charitable trust, registering is a basic, early step. Our team can get your trust registered.