12A and 80G Registration – Tax Exemption for Charitable Trusts

Expert Assistance for Section 12A Registration and Section 80G Approval Under the Income Tax Act, 1961

Section 12A registration grants a charitable or religious trust the benefit of tax exemption under Section 11 — meaning income applied for charitable or religious objects is not subject to income tax. Section 80G approval gives donors a tax deduction (50% or 100%) when they donate to the approved trust — making it far more attractive to contributors. Together, 12A registration and 80G approval are the two foundational tax benefits every charitable trust in India should obtain at the earliest opportunity after formation.

The Finance Act 2020 significantly restructured this framework — introducing the new Section 12AB regime, requiring all existing trusts to re-register, and linking 80G approval to Form 10BD/10BE compliance. Our professionals guide trusts through both initial registration and renewal, connecting with our Form 10B, Form 10BB, Form 10BD Filing, Trust Audit Services, and Charity Commissioner Submission.

Our Services

Section 12AB Registration — New Regime

Filing of Form 10A or Form 10AB for fresh registration under Section 12AB — including application preparation, document compilation, objects clause review, and follow-up with the Principal Commissioner of Income Tax.

80G Approval Application

Filing of Form 10A/10AB for Section 80G approval — verifying the trust's activities qualify for 80G, preparing the application, and following up with the PCIT to obtain provisional or final approval.

Re-Registration for Existing Trusts

Guidance and filing for trusts previously registered under Section 12A or 12AA that need to re-register under the Section 12AB framework — ensuring continuous registration without any break in exemption.

Document Compilation & Review

Systematic compilation of all required documents — trust deed, registration certificate, PAN, audited financial statements, activity report, list of trustees, evidence of charitable activities, and bank details.

Representation Before PCIT

Professional representation before the Principal Commissioner of Income Tax — responding to queries, submitting additional documents, and attending hearings during the registration process.

Post-Registration Compliance Advisory

Guidance on all post-registration obligations — Form 10B/10BB annual filing, Form 10BD/10BE for donations, 80G renewal timelines, ITR-7 filing, and activities that could jeopardise the registration or 80G status.

Key Benefits of 12A and 80G Registration

Section 11 exemption: income applied for charitable purposes is fully exempt from income tax
Section 80G approval: donors get 50% or 100% tax deduction — a powerful fundraising advantage
Registration is now under Section 12AB — initially for 5 years (provisional), renewable before expiry
80G approval must be renewed every 5 years under the new framework
Form 10BD/10BE compliance is now linked to 80G — non-filing penalties under Section 271K
Lapsed registration means entire trust income becomes taxable at the maximum marginal rate

Frequently Asked Questions

What is the difference between Section 12A and Section 12AB?

Section 12A was the old registration provision for charitable trusts providing tax exemption under Section 11. Section 12AB is the new framework introduced by the Finance Act 2020 (effective April 1, 2021) that replaced Sections 12A and 12AA. Under Section 12AB, registration is initially provisional for 5 years and must be renewed before expiry. All existing trusts registered under Section 12A or 12AA were required to re-register under 12AB by specified deadlines — failure to do so results in loss of exemption.

What are the benefits of 80G approval for donors?

Section 80G allows donors — individuals, HUFs, companies, or firms — to claim a deduction from their taxable income for donations to approved trusts. The deduction rate is 100% or 50% of the donation, subject to qualifying limits in some cases. The 80G deduction significantly reduces the donor's tax liability — making it a powerful fundraising incentive and a major competitive advantage for approved trusts over unregistered ones.

What documents are required for Section 12AB and 80G registration?

Documents typically required include: trust deed (duly stamped and registered); certificate of registration under the relevant state Trust Act; PAN card; audited financial statements for the last 3 years (or since inception); activity report detailing charitable activities; list of trustees with PAN; details of religious or educational activities; bank account details; and any prior 12A/12AA/80G registration certificate. The PCIT may require additional documents or a personal hearing.

How long does it take to get 12A and 80G registration?

The PCIT must pass an order granting or rejecting provisional registration within 3 months from the end of the month in which the application was filed. For final registration after 5 years, the time limit is 6 months. In practice, PCIT may raise queries and call for additional documents, extending the effective timeline to 4-6 months for provisional registration. Our professionals track status, respond to queries promptly, and minimise delays.

What happens if 12A or 80G registration lapses?

If a trust's 12A/12AB registration expires because it was not renewed before expiry, the trust loses its Section 11 exemption — all income becomes taxable at the maximum marginal rate. It also loses 80G approval, so donors can no longer claim deductions. The trust must apply for fresh registration and fresh 80G approval. During the lapsed period, the trust's income is fully taxable. It is critical to track registration validity dates and initiate renewal applications well before expiry.

Get Your Trust Registered Under 12A and 80G — Start Today

Our experts prepare the application, compile documents, represent you before the PCIT, and ensure registration without delay.