🧾 What Are Section 12AB and Section 80G?

• Section 12AB: Provides tax exemption to NGOs on their surplus income. Replaces earlier 12A/12AA registrations post-31.03.2021.
• Section 80G: Provides tax benefits to donors, allowing them to claim deductions on the amount donated to registered NGOs.

Note: Without these registrations, an NGO’s income and donations may be fully taxable.

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✅ Benefits of Section 12AB & 80G Registration

Benefit	Section 12AB	Section 80G
Tax exemption on income	✅	❌
Credibility and transparency	✅	✅
Boosts funding opportunities	✅	✅
Tax savings for donors	❌	✅
Eligibility for FCRA registration	✅	✅

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📌 Applicability of Section 12AB

Applicable to:

• Trusts and NGOs already registered under:
  • Section 12A
  • Section 12AA
  • Section 10(23C)
  • Section 80G (for revalidation)

Purpose: Brings uniformity, ensures periodic reviews (every 5 years), and strengthens transparency.

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📋 Registration Process under Section 12AB

🧭 Steps:

Case 1: Already registered under 12A/12AA

• Apply online using Form 10A
• Registration valid for 5 years

Case 2: New applicant (provisional registration)

• Provisional registration valid for 3 years
• Apply through Form 10A online at income tax e-filing portal

🧾 Documents Required:

1. Registration Certificate & Trust Deed (2 self-attested copies)
2. PAN card of the trust/institution
3. NOC from landlord & electricity bill (if office is rented)
4. Books of accounts, ITRs (last 3 years)
5. List of trustees/governing members
6. Activity reports/project reports (3 years)
7. Donor list with details
8. Bank statements (3 years)
9. FCRA registration details (if applicable)
10. Any other documents as requested

📄 Outcome:

• If approved: You receive Form 10AC with a 16-digit URN
• If rejected: You’ll be given a chance to present your case

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📘 Registration Process under Section 80G

🧭 Steps:

1. Apply using Form 10G
2. Submit to Jurisdictional Commissioner of Income Tax
3. Commissioner may:
   • Verify documents
   • Request additional info
   • Approve/reject after hearing

📄 Conditions for 80G Approval (Section 80G(5)):

• NGO must be established in India for charitable purposes
• No profit motive
• No benefit to a religious community or caste
• Maintain proper books of accounts
• MOA/bylaws must restrict income usage to charitable purposes only
• If involved in business activity:
  • Maintain separate books
  • Avoid using donations for business
  • Fulfill special conditions under Section 11

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🔁 Link Between 12AB and 80G

• You must apply for 12AB registration before or along with 80G.
• Applications for both can be made simultaneously.
• 80G benefits only apply after 12AB is granted.

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📅 Important Points to Remember

• Both 12AB and 80G registrations are valid for 5 years.
• Re-registration is required before expiry.
• Keep books updated and submit activity/financial reports annually to maintain compliance.

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🏁 Final Thoughts

• Section 12AB helps NGOs save tax and utilize donations fully for charitable purposes.
• Section 80G encourages more donations by giving tax benefits to contributors.
• Together, they build credibility, transparency, and funding potential for any NGO.

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