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

Incorporating a Section 8 Company or Trust is only half the job. 12A and 80G are what actually make it tax-exempt and attractive to donors — here's what each one does.

Updated Jul 2026Read 6 minReviewed by Founders Bridge
On this page +
  1. What 12A registration does
  2. What 80G registration does
  3. Why you need both, not just one
  4. The benefits, in practice
  5. Who's eligible
  6. Documents you'll need
  7. How registration works
  8. FAQs
Start here

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.

The donor-facing half

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.

Not optional together

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.
If you'll receive foreign contributions

12A and 80G don't cover foreign donations — that requires separate FCRA registration, which has its own eligibility criteria and is typically pursued once the organisation has an operating track record.

The payoff

The benefits, in practice

Taken together, 12A and 80G change both sides of a non-profit's finances — what it keeps, and what it can raise. For most organisations, these registrations are the difference between struggling for funds and being genuinely fundable.

  • Income-tax exemption — with 12A, surplus applied to your charitable objects isn't taxed, so more of every rupee goes to the cause.
  • Donor tax deductions — with 80G, donors deduct part of their contribution, which makes larger gifts materially cheaper for them.
  • CSR eligibility — companies channelling CSR funds strongly prefer, and often require, a non-profit with 12A and 80G in place.
  • Access to grants — many domestic grant-makers and foundations list valid 12A/80G registration as a basic qualifying criterion.
  • Credibility — the registrations signal to donors and partners that your organisation is compliant and properly governed.
Who qualifies

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.

Registering a non-profit and want the tax benefits sorted?

We apply for 12A and 80G immediately after incorporation, so you're fundraising-ready from day one.

Get ready

Documents you'll need

The exact list depends on whether your entity is a Section 8 Company, a Trust or a Society, but the core set is consistent. Having these ready keeps the Form 10A application moving.

  • Registration certificate — Certificate of Incorporation (Section 8), Trust deed, or Society registration certificate.
  • Governing document — the MoA & AoA, Trust deed or Society bye-laws setting out your charitable objects.
  • PAN of the organisation.
  • Details of trustees / directors / office-bearers — PAN and Aadhaar of the governing body.
  • Financial statements — audited accounts for any completed years of operation.
  • Activity report — a note on the activities carried out or planned toward your objects.
  • Bank account details in the organisation's name.
New organisations

A newly incorporated non-profit won't have years of financials yet — that's expected. This is exactly why provisional registration exists: it lets a genuine new entity get 12A and 80G in place and build the track record that regular registration later confirms.

Step by step

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.

Talk to us

Get 12A & 80G sorted from day one.

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Answers

Frequently asked questions

Can I apply for 80G without 12A?+
No — 80G registration generally requires 12A to already be in place, which is why we apply for both together right after incorporation.
Do 12A and 80G need renewal?+
Yes. Both are granted for a fixed term after the initial provisional period and need periodic renewal — missing a renewal deadline can lapse your tax-exempt status.
Does 12A cover foreign donations?+
No. Receiving foreign contributions requires separate FCRA registration, which has its own eligibility criteria.
Can a Trust or Society apply, or only a Section 8 Company?+
All three structures can apply for 12A and 80G, provided their objects and governing documents meet the eligibility criteria. Section 8 Companies tend to have the smoothest approval given their stronger governance.
How long does approval take?+
New organisations typically receive provisional registration first, valid for a limited period, before moving to regular registration once they've established a track record.

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