Trust & Societies · 12AB & 80G Registration

12AB and 80G — tax-exempt for the NGO, deductible for the donor

Two registrations make or break a non-profit’s finances. 12AB exempts the organisation’s income from tax; 80G lets your donors claim a deduction, which is often what unlocks the donation. Both run on the same post-2020 regime of provisional and regular registration with periodic renewal. We secure them and keep them alive.

By CA Vijay R Singh, FCA

ICAI Membership No. 153926 | FRN 136869W | Practising since 2013

Quick summary. Under the regime introduced by the Finance Act 2020, a trust, society or Section 8 company gets income-tax exemption through Section 12AB and donor-deduction status through Section 80G. A new organisation first gets provisional registration for 3 years (Form 10A); it then converts to regular registration for 5 years (Form 10AB), renewable every 5 years. To keep the exemption, at least 85% of income must be applied to the objects, accounts audited in Form 10B/10BB, and the return filed in ITR-7. We obtain both registrations and run the annual compliance.

Is this for you?

🎓

New NGO

A freshly formed trust, society or Section 8 company that needs provisional 12AB and 80G.

💰

Donors want 80G

Funders are asking for an 80G receipt before they’ll commit, you need the registration.

🔄

Provisional to regular

Your provisional registration is due to convert to regular and the clock is ticking.

📅

Renewal due

A 5-year registration is approaching expiry and the renewal application must go in.

📑

Old 12AA holder

You held the old 12AA / 80G and need to be sure you migrated correctly to 12AB.

⚠️

Compliance gap

Audit (10B/10BB), ITR-7 or the 85%-application rule needs to be put right.

What we actually do

Step	What happens
Assess status	Check entity type, objects and whether you need fresh, conversion or renewal registration.
Prepare the file	Trust deed / MOA, PAN, activity details, accounts and governing-body documents.
File 12AB	Form 10A (provisional / fresh) or 10AB (conversion / renewal) on the income-tax portal.
File 80G	The matching 80G application so donors can claim deduction.
Handle queries	Respond to the CIT (Exemptions) on any clarification before the order issues.
Annual compliance	10B/10BB audit, ITR-7, the 85%-application check, and renewal tracking.

The most expensive mistake is letting a registration lapse: provisional 12AB must be converted to regular at least 6 months before it expires (or within 6 months of commencing activities, whichever is earlier), and a regular registration renewed before its 5-year end. Miss it and the exemption, and your 80G, can be lost. We diary every date. This complements FCRA registration and our NGO / trust setup.

12AB vs 80G, what each does

Aspect	Section 12AB	Section 80G
Benefit to	The NGO, its income is exempt	The donor, deduction on the donation
Why it matters	Income applied to objects isn’t taxed	Makes giving attractive; often a condition of funding
Form	10A (provisional) / 10AB (regular)	10A / 10AB (matching)
Validity	3 yrs provisional, then 5 yrs	3 yrs provisional, then 5 yrs

What you get

Status & eligibility review
12AB application (10A / 10AB)
80G application filed
Document & deed compilation
CIT (Exemptions) query handling
Provisional-to-regular conversion
10B/10BB audit & ITR-7
Renewal diary & 85%-rule check

Transparent pricing

Government cost (statutory position)

12AB & 80G application: no government fee, the applications are filed free on the income-tax portal
Audit (Form 10B/10BB): a Chartered Accountant’s audit is required where income exceeds the basic exemption, quoted as part of annual compliance
Renewal: no government fee, only the professional work of filing it correctly and in time

Quoted per engagement

Professional fees depend on whether it is a fresh registration, a conversion or a renewal, and on the state of your accounts. You receive a clear written quote after a short call, no hidden charges, no published menu.

Schedule a 15-minute call

Why CA-led

Both registrations, one application cycle, 12AB and 80G filed together so nothing is left half-done
Exemption kept, not just granted, the 85%-application rule, 10B/10BB audit and ITR-7 run each year so it isn’t withdrawn
Renewals never missed, conversion and 5-year deadlines diarised, because a lapse can cost the exemption
A registered CA firm, FRN 136869W, in practice since 2013, Andheri East, Mumbai

Frequently asked questions

What is the difference between 12AB and 80G?

Section 12AB gives the NGO itself income-tax exemption, so income applied to its charitable objects is not taxed. Section 80G benefits the donor, allowing them to claim a deduction (commonly 50%) on the amount donated. They are separate registrations, most NGOs need both, and are usually applied for together.

We are a brand-new trust. Can we register straight away?

Yes. A new organisation applies for provisional registration in Form 10A, which is granted for three years. Once you commence activities, you convert it to regular registration in Form 10AB, applied for at least six months before the provisional registration expires, or within six months of commencing activities, whichever is earlier.

How long does the registration last?

Provisional registration is valid for three years. Regular registration is valid for five years and must then be renewed. The validity period is the same for 12AB and 80G, which is why we track them together.

What deduction does a donor get under 80G?

For most 80G-registered NGOs, the donor can claim a deduction of 50% of the donation, subject to the qualifying-limit rules (generally 10% of the donor’s adjusted gross total income). Certain government funds allow 100%. We make sure your 80G status and donation receipts are in the correct form for donors to claim.

I had the old 12AA registration. Do I need to do anything?

Yes. The Finance Act 2020 replaced Section 12AA with Section 12AB, and all existing 12AA and 80G holders were required to re-register under the new regime. If you are unsure whether your migration was completed correctly, we verify your status and fix any gap before it affects your exemption.

What ongoing compliance keeps the exemption alive?

Applying at least 85% of income to the charitable objects each year, getting the accounts audited in Form 10B or 10BB where income exceeds the basic exemption, filing the return in ITR-7 on time, maintaining proper books and donation records, and renewing the registration before expiry. A lapse in any of these can put the exemption at risk.

Can a Section 8 company get 12AB and 80G?

Yes. The benefits are available to eligible trusts, registered societies and Section 8 companies alike, provided the objects are charitable or religious within the meaning of the Act. We handle the registration whichever form your NGO takes.

What happens if 80G is rejected or registration is cancelled?

A rejection or cancellation can usually be addressed, by curing the defect and re-applying, or by appeal where the order is wrong. We review the reason, advise on the realistic options, and represent you before the CIT (Exemptions). As with any approval, grant is at the department’s discretion and we make no guarantee of outcome.

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Vijay R Singh & Co., Chartered Accountants · FRN 136869W · ICAI M.No. 153926 · Andheri East, Mumbai, in practice since 2013. References are to Sections 12AB and 80G of the Income-tax Act (regime introduced by the Finance Act 2020); for FY 2026-27 onward the Income-tax Act 2025 carries equivalent provisions. Grant of registration is at the discretion of the CIT (Exemptions). General information, not advice until engaged.