12A & 80G registration explained: how NGOs stop paying tax and start attracting donors
A trust, society or Section 8 company doesn’t become tax-exempt by being charitable — it becomes tax-exempt by being registered. Two registrations do the heavy lifting: 12A (now 12AB) exempts the NGO’s own income, and 80G lets donors deduct their donations. Together they decide whether serious money will ever flow to you.
What each registration does
- 12A/12AB: your surplus (grants, donations, program income applied to charitable objects) escapes income tax. Without it, an NGO is taxed like any business.
- 80G: your donors claim a deduction (generally 50% of the donation, 100% for certain funds) — the single biggest factor in unlocking HNI and corporate giving.
The process today
Both applications go online through the income-tax e-filing portal (Form 10A/10AB). New NGOs receive provisional registration valid for 3 years; you then convert to regular registration — valid for 5 years and renewable — once activities commence or before the provisional term ends. Expect the department to review your deed, objects, financials and activity proof.
Documents you’ll need
- Registration deed/certificate of the trust, society or Section 8 company
- PAN of the NGO and KYC of trustees/office bearers
- Financial statements and activity reports (for existing NGOs)
- NGO Darpan ID and bank details
The CSR multiplier
Corporate CSR money can only flow to NGOs that additionally file Form CSR-1 with MCA — and CSR-1 itself requires 12A and 80G to be in place. The sequence, then, is: entity → 12A + 80G → Darpan → CSR-1. Complete the chain and you’re eligible for every major funding pool in the country.
Key takeaways
- 12A exempts NGO income; 80G attracts donors — apply for both together.
- Provisional (3 yrs) first, then regular registration valid 5 years, renewable.
- CSR funding needs the full chain: 12A + 80G + Darpan + CSR-1.
We handle the entire chain — deed to CSR-1 — with drafting, filing and department follow-up done for you.