12 A Registration

Overview

12A Registration is issued by the Income Tax Department of India to NGOs, Trusts, and other non-profit organizations, granting them exemption from income tax on their surplus income. It is essential for all NGOs aiming to maximize the funds they raise for charitable activities. Without a valid 12A registration, an NGO’s income becomes taxable like any other commercial entity.

Benefits of 12A Registration

• Income Tax Exemption – Entire surplus income used for charitable purposes is tax-free.

• Eligibility for Grants & Donations – Required for availing government and international funding.

• Credibility & Transparency – Builds trust among donors, corporates, and other stakeholders.

• Increased Fund Utilization – More funds available for charitable and welfare projects.

• Lifetime Validity – Once granted, 12A registration usually remains valid for the lifetime of the organization.

Requirements

• Must be a legally registered Trust, Society, or Section 8 Company.

• Clear charitable objectives, as per Section 2(15) of the Income Tax Act.

• Proper maintenance of books of accounts and activity reports.

• PAN Card of the NGO and an active bank account.

• Compliance with applicable state and central laws.

Eligibility

• Any non-profit organization working for social, educational, medical, religious, or charitable purposes.

• The organization’s income must be applied solely towards its charitable objects.

• Should not distribute profits or dividends to members.

• Must not engage in activities benefiting a particular caste, community, or religion (except for religious trusts).