12A Registration in India

12A registration, under Section 12A of the Income Tax Act, 1961, allows charitable and religious organizations to claim exemption from income tax on the surplus or income they earn, provided that income is used for charitable purposes. It applies to charitable trusts, NGOs, Section 8 companies, and societies.

• Charitable Trusts Both public and private charitable trusts are eligible to apply for 12A registration.
• Section 8 Companies Non-profit companies registered under Section 8 of the Companies Act, 2013 are eligible.
• Non-Profit Societies Registered societies that use their income for charitable purposes are also eligible.

Both structures are eligible for 12A registration, but they are governed differently and operate under distinct legal frameworks.

• Trusts Governed by the Indian Trusts Act, 1882. Can be public or private, and are formed for public benefit as charitable trusts, managing assets and wealth for charitable purposes.
• Section 8 Companies Governed by the Companies Act, 2013. Formed to promote commerce, art, science, sports, education, research, social welfare, religion, or charity, and cannot distribute profits to shareholders — all profits are reinvested into the company’s objectives.

12A registration unlocks tax exemption and formal recognition that materially strengthens a charitable organization’s ability to raise and deploy funds.

• Tax Exemption Income used for charitable purposes is entirely exempt from tax.
• Eligibility for Grants Governments and international organizations require 12A registration before providing grants or donations.
• Attracting Donors Demonstrates genuine charitable purpose, encouraging contributions from donors.
• Income Accumulation Organizations can set aside income for up to 5 years for specific charitable purposes without tax implications.

Keep the following documents ready before filing the 12A registration application.

1. Form 10A The prescribed application form for 12A registration.
2. Trust Deed or MoA Trust Deed or Memorandum of Association of the organization.
3. PAN Card PAN card of the organization.
4. Address Proof Address proof of the registered office.
5. Financial Statements Financial statements for the last 3 years, if applicable.
6. Bank Account Statements Statements for the organization’s bank account.
7. List of Trustees/Directors Names and addresses of all trustees or directors.
8. Details of Activities A brief description of the organization’s charitable activities.