12AB & 80G Registration for NGOs

The two registrations, and what each does

12AB — now Section 332. This registers the organisation as a registered non-profit organisation and is what makes its own income eligible for exemption, subject to applying at least 85 per cent of it to charitable purposes each year and meeting the other conditions of the exemption regime.

80G — now Section 133 for the donor's deduction, with the institution's own approval under Section 354. The 2025 Act splits what was one section into two: Section 133 gives the donor the right to claim the deduction, while Section 354 is the application the institution itself must make to be approved to receive donations that qualify. Both numbers matter, but from the organisation's side, Section 354 is the one to act on. An organisation can be validly registered under Section 332 and still have no 80G approval — in which case its own income is exempt, but donors get nothing for their contribution. For an organisation that depends on donations, 80G approval is often more commercially important than the exemption itself.

Provisional and regular registration

Both 12AB and 80G registration are now obtained in two stages.

Provisional registration is granted to a new organisation, or one applying for the first time, without detailed scrutiny of activities actually carried out — because none may yet exist. It runs for three years, applied for in Form 104 (replacing the earlier Form 10A).

Regular registration must be applied for before the provisional period ends, or within six months of commencing activities, whichever is earlier. It involves closer scrutiny of what the organisation has actually done, and runs for five years — extended to ten years for organisations whose income did not exceed ₹5 crore in each of the two preceding years. It is applied for in Form 105 (replacing Form 10AB).

Renewal of regular registration follows the same form, applied for again before expiry.

Missing the conversion from provisional to regular registration, or missing a renewal, does not merely create an administrative gap. It can mean the organisation was never validly registered for the period in question — which affects both its own exemption and every donor's deduction for gifts made during that time.

The point every existing NGO should check now

An organisation holding a valid 12AB or 80G registration on 1 April 2026 was carried into the new framework automatically, continuing until its existing expiry date and then renewing under the new provisions.

An organisation whose registration had already lapsed before that date was not carried over. A fresh application is required, and — critically for 80G — donations received while the approval was lapsed do not qualify for donor deduction, whatever the donor believed at the time. This is worth checking now, and it is worth checking before asking donors for money rather than after a donor's deduction is challenged.

What every organisation seeking 80G approval should tell donors

Two restrictions on the donor's side matter more than most NGOs realise, and both are worth explaining to donors proactively rather than leaving them to discover at return-filing time.

The new tax regime blocks the deduction. An individual or HUF computing tax under the new regime cannot claim a deduction under Section 80G at all — only a narrow set of specified government funds remain deductible there. Since the new regime is now the default, a donor who does nothing is, in effect, giving up the deduction unless they actively choose the old regime. For a donor planning a significant gift, whether the old regime is worth electing for that year is a real question, and one we help donor and organisation alike think through.

Most approved organisations give only a 50 per cent deduction, subject to a limit. Donations to most charitable trusts and institutions qualify for 50 per cent deduction, not 100, and are further capped at 10 per cent of the donor's adjusted gross total income. Only a small category of specified national funds carries a full, uncapped deduction. Donors who assume every donation to an approved NGO gives a rupee-for-rupee benefit are usually mistaken, and telling them the correct position before they give avoids an awkward conversation afterwards.

Cash donations above ₹2,000 do not qualify at all, however the recipient reports them. Donations in kind — goods, services, time — never qualify, regardless of value.

The certificate the donor actually needs

Approval alone does not secure a donor's deduction. The organisation must report the donation in its annual statement of donations, and issue the donor a certificate generated from that statement. The department cross-checks the donor's claimed deduction against what the organisation has reported, and a donation not reported, or reported with the wrong PAN or amount, is a deduction the donor cannot substantiate — regardless of how genuine the gift was.

This makes the organisation's own record-keeping a direct determinant of its donors' tax position, which is a stronger reason to get it right than compliance alone would supply.

Documents and information required

• Certificate of registration or incorporation of the organisation — trust deed, society registration certificate, or certificate of incorporation for a Section 8 company
• PAN of the organisation
• Details of trustees, governing body members or directors, with identity proof
• A note on activities actually carried out, or proposed, for a new applicant
• Audited accounts, where the organisation has been operating
• Details of the registered address, with supporting proof
• For regular registration following the provisional period, evidence of activities actually conducted during the provisional period is required, which is where organisations that have not kept adequate records find the application difficult.

Scope of our work

We advise on eligibility and prepare provisional and regular registration applications in Form 104 and Form 105; track conversion and renewal deadlines so applications are made in advance rather than after expiry; check whether an existing registration is currently valid or has lapsed, and advise on regularising it where it has; advise organisations on what to tell donors about the new-regime restriction and the deduction limits that apply to them; ensure the annual statement of donations is filed and certificates issued correctly, so that donor deductions are not put at risk by the organisation's own reporting; and coordinate this work with the annual exemption audit, since both draw on the same records.