12A & 80G Registration Online for NGOs in India

What is 12A and 80G Registration?

Non-profit organizations (NGOs) in India, including trusts, societies, and Section 8 companies, rely heavily on donations and grants to fulfill their charitable objectives. To encourage these contributions and to receive tax exemptions on their income, NGOs need to obtain registrations under Section 12A and Section 80G of the Income Tax Act, 1961. For any NGO in India, these two registrations are the bedrock of financial stability and fundraising success.

Section 12A of the Income Tax Act, 1961

Section 12A registration grants income tax exemption to NGOs on their surplus income. Without this registration, any income generated by the NGO — including voluntary contributions from donations or grants — would be taxable as per standard rates. It essentially certifies that the organization's income is applied for charitable or religious purposes and is therefore exempt from tax.

Note: Since 2020, Section 12A has been replaced by Section 12AB. All NGOs must re-register under Section 12AB to continue enjoying their tax exemptions.

Section 80G of the Income Tax Act, 1961

Section 80G registration provides a tax benefit to the donors of the NGO. When an organization has an 80G certificate, individuals or entities donating to it can claim a deduction (either 50% or 100%, depending on the donee institution and type of donation) from their taxable income. This encourages more people to donate. However, this benefit has rules under Section 80G(1) of the Income Tax Act.

Why Do You Need Both 12A and 80G for Your NGO?

While 12A registration grants tax exemption to the NGO, 80G registration is crucial for attracting donors. Many potential donors, especially individuals and corporations, look for 80G-certified organizations to avail of tax benefits.

Securing both certificates significantly enhances your NGO's credibility and fundraising potential. Moreover, to be eligible for certain government grants and Corporate Social Responsibility (CSR) funds, possessing both 12A and 80G registrations is often a mandatory requirement.