12A Registration - Complete Overview for NGOs
📌 TL;DR - 12A Registration Services at a Glance
TL;DR: Every charitable trust, society, and Section 8 company in India must register under Section 12A of the Income Tax Act, 1961 to claim exemption from income tax on surplus income. Without 12A registration, even genuinely charitable organisations are taxed at applicable slab rates on all receipts including donations. The process is fully online via Form 10A on the Income Tax e-filing portal with no government fee.
| Parameter | Details |
|---|---|
| What | Registration under Section 12A/12AB of the Income Tax Act granting income tax exemption to NGOs |
| Who Needs It | Charitable trusts, societies (Societies Registration Act), Section 8 companies |
| Governing Law | Section 12A, 12AB of the Income Tax Act, 1961 (as amended by Finance Act 2020 and 2023) |
| Application Form | Form 10A (new/provisional) or Form 10AB (renewal/final registration) |
| Validity | Provisional: 3 years | Regular: 5 years (10 years for trusts with income under Rs 5 crore from April 2025) |
| Government Fee | Nil - No government fee for filing Form 10A or Form 10AB |
| Processing Time | 15-30 days (provisional) | 1-6 months (regular, depends on PCIT(E) scrutiny) |
The registration process has been streamlined under Section 12AB since April 2021, with the entire application now filed online through the Income Tax e-filing portal using Form 10A (new registrations) or Form 10AB (renewals). There is no government fee for filing the application, and Patron Accounting's CA team manages the entire process from document preparation to PCIT(E) order follow-up.
The Finance Act 2025 (Budget 2025) extended validity to 10 years for trusts with income under Rs 5 crore in each of the preceding 2 years, significantly reducing the renewal burden for smaller NGOs. All registrations are processed by the Principal Commissioner of Income Tax (Exemptions) - PCIT(E) - based on the registered office location of the NGO.
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