12A and 80G explained — the two registrations that make a non-profit work.

What 12A registration does

12A registration, granted under Section 12A of the Income Tax Act, exempts a non-profit's own income from income tax — provided that income is applied toward its charitable objects rather than distributed or used outside its stated purpose. Without 12A, a Section 8 Company, Trust or Society is taxed like any other entity on its surplus, which defeats much of the point of running a non-profit.

12A is about the organisation's own tax position — it doesn't directly affect donors. That's what 80G is for.

What 80G registration does

80G registration, granted under Section 80G of the Income Tax Act, allows donors to claim a deduction on the amount they contribute to your organisation when filing their own income tax returns. This is often the difference between a donor giving and a donor giving generously — the tax benefit makes larger contributions materially cheaper for the donor, which directly improves fundraising for CSR-funded and individual-donor non-profits alike.

Why you need both, not just one

12A and 80G solve two different problems, and most serious non-profits need both from early on:

• 12A alone protects the organisation's own income from tax, but does nothing to make donations more attractive to funders.
• 80G alone isn't typically granted without 12A already in place — the two are usually applied for together, immediately after incorporation.
• Both together mean the entity keeps more of what it earns, and donors get a real incentive to give — which is why we apply for both as a standard part of Section 8 Company registration.

Who's eligible

Eligibility centres on having a genuinely charitable object and the right legal structure — a registered Section 8 Company, Trust or Society, with objects falling within the categories recognised under the Income Tax Act (relief of the poor, education, medical relief, environmental preservation, and similar objects of general public utility). The organisation's governing documents and activities must also demonstrate that no income or assets benefit members personally.

How registration works

1. Incorporate first

You need a registered non-profit entity in place — most commonly a Section 8 Company — before applying.

2. Apply via Form 10A

Both 12A and 80G applications are filed online through the Income Tax Department's Form 10A, typically together.

3. Provisional registration

New organisations usually receive provisional registration first, valid for a limited period, meant to let a genuinely new entity build a track record.

4. Regular registration & periodic renewal

After the provisional period, you apply for regular registration, which is granted for a fixed term and needs periodic renewal — we track these deadlines so nothing lapses.

Frequently asked questions