Komal Tyagi

Both applications can be applied together or it can also be applied separately also. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration is must for applying application for registration u/s 80G of Income Tax Act, 1961.

Step by Step Procedure for Registration u/s 12A

Application for 12A registration is made in Form 10A. It is prescribed in Rule 17A of the income tax rules’ 1962. Below is the step by step procedure for applying Section 12A registration:

a) To whom application for registration u/s 12A is to be made?  

The application for registration has to be filed with the jurisdictional Principal Commissioner or commissioner of Income Tax (exemptions).

b) Documents to be furnished alongwith Form 10A for registration u/s 12A

  1. Self-certified copy of Trust Deed or Instrument, where the trust is created under an instrument.
  2. Self- certified copy of the document evidencing the creation of the trust, where the trust is created, otherwise than under an instrument.
  3. Self-certified copy of registration with Registrar of Companies (RoC) or Registrar of Firms and Societies or Registrar of Public Trusts.
  4. Self-certified copy of the documents evidencing adoption or modification of the objects, if any;
  5. Where the trust has been in existence for during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust relating to such prior year or years (but not more than 3 years immediately preceding the year).
  6. Note on the activities of the trust or institution.
  7. Self-certified copy of the existing order granting registration under section 12A or section 12AA, if any.
  8. Self-certified copy of the order of rejection of an application for grant of registration under section 12A or section 12AA, if any.

Note:

  1. Form No. 10A shall be furnished electronically:

(i) under digital signature, if the return of income is required to be furnished under digital signature;

(ii) through electronic verification code in a case not covered under clause (i)

  1. Form No. 10A shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee.

c) Procedure for registration u/s 12A

Section 12AA of the Income Tax Act’ 1961 prescribes procedure for registration of Trusts or institution as follows:

  1. The Principal Commissioner or Commissioner, on receipt of an application for registration of a trust or institution shall

(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about

(i) the genuineness of activities of the trust or institution; and

(ii) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects and may also make such inquiries as he may deem necessary in this behalf

  1. After satisfying himself about the objects of the trust or institution and the genuineness of its activities and compliance of the requirements he

(i) shall pass an order in writing registering the trust or institution

(ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution and a copy of such order shall be sent to the applicant

Please note that no order shall be passed unless the applicant has been given a reasonable opportunity of being heard.

d) Deemed Registration u/s 12A

As per Section 12AA(2) Every order granting or refusing registration shall be passed before the expiry of six months from the end of the month in which the application was received.

The Supreme Court on February 16’2016 held in the case of:

CIT vs. Society for The Promotion of Education, Adventure Sport & Conservation of Environment

“S. 12AA: Non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) results in deemed grant of registration”

CBDT Instruction:.

The CBDT has issued Instruction No. 16 of 2015 dated 06.11.2015 in which it has taken a stern view of the fact that the time limit of six months specified in s. 12AA(2) of the Income-tax Act 1961 for passing an order granting or refusing registration under s. 12AA are not being adhered to by the Commissioners of Income Tax (Exemptions). The CBDT has directed the Chief Commissioners to monitor that the Commissioners are adhering to the time limit and to take suitable administrative action in the case of laxity.

Registration Us. 12A & 80G

Step by Step Procedure for Registration u/s 80G

Conditions to be satisfied to get approval under Section 80G

Section 80G (5) prescribes certain conditions to be satisfied to get the approval u/s 80G:

♠ The Institution should be established in India for Charitable purpose.

♠ If the Institution or fund is deriving any income, such income should not be liable to inclusion in its total income under the provisions of sections 11and 12 or clause (23AA) or clause (23C) of section 10.

♠ If the institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11shall not apply in relation to such income, if:

(a) the institution or fund maintains separate books of account in respect of such business;

(b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and

(c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;

♠ The instrument under which the institution is constituted shall not contain any provision for transfer or application of the income or asset for any purpose other than a charitable purpose.

♠ The institution should not be for the benefit of any particular religious community or caste.

♠ The institution should maintain regular accounts of its receipts and expenditures.

♠ The institution should be either constituted as a Public Charitable Trust or a registered society or a company registered u/s 8 of the Companies Act’2013 or is a University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority.

Procedure for Registration under Section 80G:

Rule 11AA of the Income Tax Rules’1962 provides procedure for seeking approval under section 80G.

(1) The application for approval of any institution shall be made in form no. 10G which shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee

(2) Form No. 10G shall be furnished electronically,—

(i) under digital signature, if the return of income is required to be furnished under digital signature; or

(ii) through electronic verification code in a case not covered under clause (i).

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down the data structure, standards and procedure of furnishing and verification of Form No. 10G and shall be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished.

(4) The Principal Commissioner or Commissioner may call for such further documents or information from applicant or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of the applicant.

(5) Where the Principal Commissioner or Commissioner is satisfied that all the conditions laid down in section 80G(5) are fulfilled by the applicant, he shall record such satisfaction in writing and grant approval under clause (vi) of sub-section (5) of section 80G.

(6) Where the Principal Commissioner or Commissioner is satisfied that one or more of the conditions laid down in section 80G(5) are not fulfilled, he shall record the reasons in writing and reject the application for approval after giving the applicant an opportunity of being heard.

Time Limit of Passing Order:

The order granting approval under section 80G(5) or rejecting the application shall be passed within the period of six months from the end of the month in which such application was received.

In computing the period of six months, any time taken by the applicant in not complying with the directions of the Commissioner shall be excluded.

Important Note:

Amendment by Finance Act’2017

“No deduction shall be allowed under this section in respect of donation of any sum exceeding TWO thousand rupees unless such sum is paid by any mode other than cash.”

Finance Act 2017 amended section 80G so as to provide that no deduction shall be allowed under the section 80G in respect of donation of any sum exceeding Rs. 2,000/- unless such some is paid by any mode other than cash. Earlier this limit was 10, 000/-.Government has taken this step in order to provide cash less economy and transparency

Questions Remarks
What is Section 12-A of Income Tax Act? Income of an organization is exempted if NGO has 12-A registration. This is one time registration.
What is section 80-G of Income Tax Act? If an organization has obtained certification under section 80-G of Income Tax Act then donors of that NGO can claim exemption from Income Tax. Earlier it was not  not one time registration and trust were required to get 80G Certificate renewed after validity period.

But As per Circular 7/2010 dated 27.10.2010  issued by the CBDT, all Trusts enjoying exemption u/s 80G as on 1.10.2009 and other Trusts obtaining 80G certificate after 1.10.2009 shall continue to hold and enjoy the same for perpetuity unless revoked by the Income Tax Authorities.

When an organization can apply for registration under section 12A and 80G of Income Tax Act? Application for registration under section 12A and 80G can be applied just after registration of the NGO.
Where to apply for registration under section 12A and 80G of Income Tax Act? Application for registration under section 12A and 80G can be applied to the Commissioner of Income Tax (Exemption) having jurisdiction over the institution.
Can both the application under section 12A and 80G of Income Tax Act be applied together? Yes, Both applications can be applied together or it can be also applied separately. If some organization is willing to apply both applications separately, then application for registration u/s 12A will be applied first. Getting 12A registration must for applying application for registration u/s 80G of Income Tax Act.
What is the timeline for getting registration under section 12A and 80G of Income Tax Act? If application for registration under section 12A and 80G will be applied through NGO factory, it should take 3-4 months.
What applications Form are being used for applying for registration under section 12A and 80G of Income Tax Act? For 12A registration : Form 10AFor 80G registration : Form 10G ( For New Application and renewal both)
What is the validity period of the registration under section 12A and 80G of Income Tax Act? 12A registration: Lifetime validity80G registration: 1to 3 years validity
What are the conditions on section 80G? There are few conditions on section 80G:·         The NGO should not have any Income which is not exempted, such as business income. If the NGO has business income then it should maintain separate books of account and should not divert donations received for the purpose of such business.·         The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of NGO for the purpose other than charitable.

·         The NGO should not work for the benefit of particular religious community or caste.

·         The NGO should maintain regular accounts of receipt & expenditure.

·         The NGO should properly register under the societies Regulation Act 1860 or under any law corresponding to that Act or should register under section 25 of the Companies Act 1956.

What is the Tax Exemption Limit on donation? There is a limit on how much money can be exempted from the Income Tax:·         If the amount of deduction to a charitable organization or trust is more than 10% of the gross total Income computed under the Act (as reduced by income on which income tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of 10% of Gross Total Income shall not qualify for deduction under section 80G.·         The persons or organizations who donate under section 80G gets a deduction of 50% from their taxable Income.

Replaced with Amendments

More Under Income Tax

87 Comments

  1. Varun says:

    Hi,
    What are the charges for opening a ngo and also for applying 12a and 80 g certification..please contact at 9212104489.

  2. amrinalwani says:

    Hi, I have taken manual registration under 80G in the year 2010. Am I required ti update the details on online portal ??

  3. Mani says:

    My NGO’s 80G application rejected due to violation of section 13 of IT Act 1961. The application was rejected in 2013. Now i want to ask can i again reapply for 80G license?
    Responses will be much appreciated.
    Thank you very much

  4. NIRMAL SINGH says:

    our NGO registered in Delhi.Registered office in Delhi,but office actively working in Bihar. may we apply for 12A and 80 G form from Bihar or not ?

  5. Easy Foundation says:

    I’m Neeraj Kumar Secretary of Easy Foundation Agra
    I want to know that about 12A and 80G registration process and that fee and documents with time.

  6. Ajith says:

    Am a director of an NGO working in the field of Art & Culture. We provide training for students and collect a nominal fee from students. We also collect donations for our activities. Can we apply for 12A and 80G?

  7. Arun prakash says:

    I want to apply for 12a, 10g, 80g tax assumption on donation to our trust Chandrayaan Educational trust
    please send me 12a, 10g, 80g form to apply.

  8. ajay kumar gupta says:

    i want to know ragistration process of 12A and 80G and going to ragistered my ngo if any body can help me so contact me on 9993672290

  9. Labanya Kumar Roy says:

    I want to apply for 12a, 10g, 80g tax assumption on donation to our Ngo Kaluha Samaj Swechha Shevi Sanastha, please send me 12a, 10g, 80g form to apply.

    Labanya Kumar Roy
    Secretary
    Kaluha Samaj Swechha Shevi Sanastha
    Regd. No. S/2L/13851 of 2013-14
    Tel: 9733328463
    Email : labanyaroy81@gmail.com

  10. SREE GANGA RURAL AND URBAN DEVELOPMENT SOCIETY says:

    I WANT TO APPLY FOR 12 A AND 80 G TAX ASSUMPTION ON DONATION TO MY NGO new registration 08/01/2018 SREE GANGA RURAL AND URBAN DEVELOPMENT SOCIETY.

  11. MADHURI MOYDE says:

    I WANT TO APPLY FOR 12 A AND 80 G TAX ASSUMPTION ON DONATION TO MY NGO VIJAY SOCIAL WELFARE SOCIETY.PLEASE SEND ME 10 G FORM TO APPLY .

  12. sunil says:

    I registered trust before two Months now I want to get the 12A and 80G certificates for in come tax department please inform me it is possible or not thanking you sir for your valuable time and advises

  13. Kinara Foundation says:

    Dear Sir,

    kinara foundation is an organisation (NGO) working for Senior Citizens in Navi mumbai from past 6 month registration date-08/03/2017

    We want to acquired 12A & 80G certificate.

    So please let us know what is process for registration and charges.

    Thanks & Regards
    Kalu Rathod
    09763806705

  14. Narayanan.V says:

    I am having a trust started in August 2015..Pl inform whether I can send the audit report for first year only(8/15 to 3/16) alongwith application for 12A & 80G.

  15. bijay rai says:

    IM FROM GANGTOK AND I AM RUNNING THE CHERITABLE TRUST NAME THE MOUNTAIN INSTITUTE- INDIA THOUGH NGO IS REGISTERED BUT I HAVE NOT REGISTERED 80G AND 12A UNDER INCOME TAX ACT,1961. PLEASE HELP ME TO REGISTER THESE UNDER INCOME TAX ACT

  16. vinay says:

    can donations be taken between the period when the application is made and exemption is granted by the Commissioner ( exemptions ) u/s 80 g but in the same year say application is made on 1.5.2017 and the approval is expected by 10.7.2017
    A reply shall be appreciated

  17. Vivek says:

    Hi,

    I am building an online portal for church(s) in India, using which they can build their own sites without coding.
    Online Donation is one of the features which is being planned.

    What compliance should my company be filing if it has to enable receiving online donations on behalf of church?

  18. bhushan shet says:

    our organisation is a charitable trust registered under BPT Act 1950. We previously applied for registration under 12A and we are holding the certificate under section 80G.
    The 80G certificate is expired long back. Please let us know the procedure to renew the same. our income tax return file is up to date.

  19. yagyesh says:

    we get registered our trust and now want to registered u/s 12 AA and 80 g of Income tax Act. our registered office is situated at Aligarh(UP) and our bracnch office is at Raipur (Chhattisgarh ). Can we apply for registration u/s 12 AA at jurisdiction of Branch office

  20. Varma says:

    Non-profit ngo organization like trust, society or nonprofit company,should apply immediately for 12A certificate after it’s registration .In case of delay in applying for registration then the nonprofit ngo organization should submit Audit Reports for the past three years or as may be available.

    For any Income Tax Queries:
    Call / whatsapp : 9052535440
    write to me: Dsssvtax@gmail.com

  21. Varma says:

    Application should be made within one year of the creation of the Trust/society. Such Application should be made in Form no.10A. In case, such an application is delayed, and the registration will be allowed from the financial year in which such application is made i.e. for earlier years the society will have to pay the Income Tax at the usual rate.
    For any Income Tax Queries:
    Call / whatsapp : 9052535440
    write to me: Dsssvtax@gmail.com

  22. dasari srinivasa rao says:

    I registered Society before 20 months, now i want to get the 12A and 80 certificates for income tax department. please inform me it is possible or not.
    thanking you sir for your valuable time and advises.

  23. Dr Rajneesh says:

    Sir my hospital is private limited hospital in jabalpur we require income tax exemption certificate , we also have NGO. IT dept told us to fill12A form ,pls help

  24. Chandrakant G. Choudhari says:

    I am trustee of a trust. The trust has been expired its 80 G certificate in 1999. can I renew it. or go to apply for new certificate.

  25. RAGHUNATHA.P.RAYKAR says:

    our trust has obtained 12a exemption during 2003 and is filing I T Return regularly with old pan manually upto A.Y. 2013-14.. while filing IT Return for the A.Y. 2014-15, online system displays that the pan is invalid as the fourth letter is A instead of T. Hence, we have obtained new valid pan and the 4th letter of pan is T and we have submitted I.T.Return online for the A.Y.2014-15 quoting new valid pan. CPC has not given exemption u/s 12a to our new Valid PAN. How to solve the issue

  26. RAGHUNATHA.P.RAYKAR says:

    our trust is granted 12a exemption with old pan.and trust is filing I.T.Return with old pan. while filing IT Return for the A.Y. 2014-15 online system display that the pan of the trust is invalid as the 4th letter is A instead of T. Immediately we have applied for new valid pan in which 4th letter is T and we have submitted return with new valid pan. CPC has not considered our 12a exemption for new valid pan. how to solve the issue.

  27. Abinash Koshore Bora says:

    I am a member of United NGO Forum of Nagaon.Assam
    Now our some member organization want to apply for 12A ,80G reg.
    Plz Guide us
    AKBora
    CEO

    1. Anup Mukherjee says:

      Hello Abinash

      All your member MGOs can apply for registration immediately. They need to submit registration documents, PAN, address proof, details of Governing Body members and Promoters, and if the NGO is not new, then accounts of last three years need to be submitted.

  28. B.Sasibhushana Chowdary says:

    Sir, We the NGO call JANA CHETANA, We had 12A but at present its misplaced, we are not able to submit the same, w had no any proof of the same. Recently we had a problem with IT for filing IT returns through on line. Its required 12A Registration Number. How the problem selved and what we do to get the same or fresh certificate. Pl inform the the solve the problem.
    B.S.Chowdary.

  29. deepak sharma says:

    hello dear
    I would like to know some information about 12a and 80g
    mainly what is the different between both and secondly when we can apply for both together and sepretely..
    and what is a criteria to apply for that.

    Thank you

  30. CA YUGAL PUUROHIT says:

    mistake in article as 80G registration is also granted for lifetime.it was earlier that the 80 g was granted for 1-3 years but now it is for life time.

  31. Rohan says:

    Hi Komal,
    Great article!
    One small correction – As per Circular 7/2010 issued by the CBDT, all Trusts enjoying exemption u/s 80G as on 1.10.2009 and other Trusts obtaining 80G certificate after 1.10.2009 shall continue to hold and enjoy the same for perpetuity unless revoked by the Income Tax Authorities.

    Hence, both 12AA and 80G certificates have perpetual validity unless revoked.

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