In India, Non-Governmental Organizations (NGOs) work tirelessly to create social impact, from education and health to environmental sustainability and rural development. But to sustain these efforts, NGOs need donations—and for that, they must offer tax exemption benefits to their donors under section 80G of the Income Tax Act.
However, before an NGO can apply for 80G registration, it must first obtain a 12A registration. This is not just procedural; it is a mandatory legal requirement. But why is 12A so crucial? And how does it affect your eligibility for 80G? Let’s break it down.
✅ What is 12A Registration?
12A registration is a certificate issued by the Income Tax Department of India to NGOs, trusts, and Section 8 companies. It provides income tax exemption on all funds received by the organization, provided they are used for charitable purposes.
Without 12A, an NGO’s entire income would be subject to taxation, just like any commercial business.
✅ What is 80G Registration?
80G registration allows donors who contribute to your NGO to claim tax deductions on their donations. It is a powerful tool for fundraising, especially from:
Individual donors
Corporates under CSR funding
Foundations and grant-making bodies
With 80G registration, your NGO becomes a more attractive and credible recipient of funds, as donors get up to 50% deduction on their taxable income.
???? Why is 12A Registration Mandatory Before 80G?
Here are the top reasons why 12A registrations are mandatory before applying for 80G registration:
1. Legal Compliance as per Income Tax Rules
According to the Income Tax Act, an NGO must be first registered under section 12A to be recognized as a tax-exempt charitable institution. Only after this status is granted can it apply under section 80G to extend tax benefits to donors.
The rationale is simple: If your own income is not tax-exempt, how can you offer exemptions to others?
2. Proof of Charitable Nature
12A registration is like a stamp of approval from the government confirming that your NGO is genuine and operates for charitable, religious, or social purposes—not for private gain or profit.
This certification builds a foundation of trust required to issue 80G receipts to donors. Without 12A, the Income Tax Department may doubt the non-profit motives of your organization.
3. Prevents Double Tax Exemptions
The government uses 12A as a control mechanism. It ensures that:
The NGO itself is exempt from tax under section 11 and 12
Only such compliant NGOs can offer tax benefits to donors under section 80G
This prevents misuse of 80G receipts by NGOs that may not be genuinely applying funds toward public welfare.
4. Essential for CSR and Donor Funding
Many CSR departments and grant agencies require NGOs to submit both 12A and 80G certificates. Without 12A, your organization:
Cannot provide valid donation receipts
May lose potential donations
Will not be listed as a trusted organization on platforms like NGO Darpan or Guidestar
Thus, 12A registration is not just a legal step, but a practical requirement for fundraising.
5. Online Filing System Integration
As per the new unified system introduced by the Income Tax Department, both 12A and 80G applications are filed together using Form 10A or Form 10AB (for renewal). The system is designed in a way that:
80G cannot be processed independently
You are automatically required to select 12A while filing for 80G
This structure confirms that 12A is a prerequisite for 80G in all cases.
???? How to Apply for 12A and 80G Together
Since 2021, the Central Board of Direct Taxes (CBDT) mandates a unified form to apply for both 12A and 80G registrations online.
Steps:
Visit: www.incometax.gov.in
Login with your NGO PAN
Go to “Income Tax Forms” → Select “Form 10A”
Choose options for both 12A and 80G
Upload documents: PAN, registration certificate, MOA/trust deed, financials
Submit with Digital Signature or EVC
Once approved, you’ll receive both certificates valid for 5 years, which must be renewed thereafter.
???? Consequences of Skipping 12A Registration
If you apply for 80G without 12A:
Your application will be automatically rejected
You won’t be able to issue tax-exempt donation receipts
Your donors will lose trust in your organization
You may be ineligible for CSR funding or grants
Therefore, 12A registrations are not optional—they’re foundational to your NGO's legal and fundraising framework.
???? Frequently Asked Questions (FAQs)
❓ Is 12A registration free?
Yes. There is no government fee for 12A registration. You only pay professional or consultancy charges, if any.
❓ Can I get 80G without 12A?
No. As per Income Tax rules and portal structure, 12A registration is mandatory before 80G.
❓ Is 12A valid for lifetime?
Earlier it was, but now 12A is valid for 5 years, after which it must be renewed using Form 10AB.
❓ How long does it take to get 12A and 80G?
Typically 30–60 working days, depending on your documentation and Income Tax Department processing speed.
✅ Final Words
In conclusion, 12A registration is a legal and strategic prerequisite for 80G approval. It establishes your NGO as a tax-exempt entity and enables you to issue tax-deductible donation receipts to your supporters.
If you’re starting an NGO or running one without 12A and 80G, you’re missing out on vital fundraising opportunities. Don’t delay—apply for 12A and 80G registrations today to unlock the full potential of your charitable mission.
At NGOExperts, we help NGOs across India file seamless applications for 12A, 80G, FCRA, and CSR registration — with expert legal and compliance support at every step.