All services
Our benefits
Empowering your business with expert financial clarity — without the cost of a full-time CFO.
Section 12A Registration: Tax Exemption for NGOs & Trusts
Section 12A of the Income Tax Act, 1961 provides tax exemptions to charitable trusts, religious organizations, and NGOs by exempting their income from taxation. Registration under Section 12A is essential for organizations engaged in non-profit activities to benefit from full tax exemptions.
1. What is Section 12A Registration?
- Applicable to: Charitable & Religious Organizations, NGOs, Trusts, and Societies
- Purpose: Grants full tax exemption on the organization’s income.
- Tax Relief: Income utilized for charitable or religious activities is not taxed.
2. Key Benefits of Section 12A Registration:
- Complete Income Tax Exemption – The NGO’s income is not taxable.
- Eligibility for Government Grants & CSR Funding – Many government bodies and corporates prefer to fund 12A-registered NGOs.
- Tax Benefits for Donors (80G Registration) – An NGO with 12A & 80G registration attracts more donations.
- No Annual Renewal Required – Lifetime validity unless cancelled.
3. Conditions for Tax Exemption:
- Income Application Rule – Expenses on charitable/religious purposes = Tax-Free Income
- Accumulation of Income – NGOs can set aside up to 15% of their income for future use, while the rest must be applied towards charitable purposes.
- Proper Financial Records & Audits – NGOs must maintain records of their income and expenses.
4. Documents Required for Section 12A Registration:
NGO Registration Certificate (Trust Deed/ MOA & AOA)
PAN Card of NGO
Address Proof of NGO Office
Financial Statements & Audit Reports (Last 3 years)
List of Trustees/Board Members
Details of Welfare Activities & Beneficiaries
5. How to Apply for Section 12A Registration?
- Prepare Required Documents
- File Form 10A Online on the Income Tax Portal
- Verification & Scrutiny by the IT Department
- Receive Section 12A Registration Certificate (If Approved)
- Processing Time: 1-3 months
Why Choose filing365?
- Complete Section 12A & 80G Registration Assistance
- NGO Compliance & Tax Advisory
- Funding & Financial Planning for NGOs