This detailed blog explains what 12A and 12AA registration is, who can apply, benefits, documents required, online process, validity, and key compliance rules in simple language.
What Is 12A and 12AA Registration?
12A and 12AA registration is granted under the Income Tax Act, 1961 to charitable and non-profit organizations. It allows NGOs to claim exemption from income tax on income applied for charitable purposes.
Section 12A provides eligibility for tax exemption
Section 12AA deals with the registration process and verification
Important Update:
From April 2021, 12AA has been replaced with 12AB registration, but the term 12A & 12AA registration is still commonly used. Existing and new NGOs must now apply through the online 12AB procedure.
Who Can Apply for 12A and 12AA Registration?
The following organizations are eligible to apply:
Charitable Trusts
Registered Societies
Section 8 Companies
Educational Institutions
Religious Organizations
Non-Governmental Organizations (NGOs)
The organization must be established solely for charitable or religious purposes.
Objectives Considered as Charitable Purpose
As per the Income Tax Act, the following are treated as charitable purposes:
Education
Medical relief
Relief to the poor
Advancement of environment protection
Preservation of monuments or heritage
Advancement of any other object of general public utility
Activities should be genuine and not profit-oriented.
Benefits of 12A and 12AA Registration
Obtaining 12A/12AA registration provides multiple advantages:
Income Tax Exemption – No tax on surplus income
Higher Credibility – Increases trust among donors and authorities
Eligibility for 80G Registration – Enables donors to claim deductions
More Funds for Charity – Tax savings increase usable funds
Long-Term Sustainability – Financial stability for NGOs
This registration is the foundation for tax planning of any NGO in India.
Documents Required for Online 12A and 12AA Registration
To apply online, the following documents are required:
Trust Deed / Memorandum of Association (MOA)
Registration Certificate of Trust / Society / Section 8 Company
PAN of the Organization
PAN & Aadhaar of Trustees / Directors
Financial Statements (last 3 years, if applicable)
Activity Report of the NGO
Bank Account Details
Digital Signature (DSC)
All documents must be clear, accurate, and uploaded online.
Online Process of 12A and 12AA Registration in India
The registration process is fully online through the Income Tax portal.
Step 1: Login to Income Tax Portal
Application is filed on the official portal of the Income Tax Department.
Step 2: Filing Form 10A / 10AB
Form 10A – For provisional or initial registration
Form 10AB – For regular or renewal registration
Step 3: Upload Documents
Upload required documents such as trust deed, PAN, and financials.
Step 4: Verification
The Income Tax Department may ask for:
Clarifications
Additional documents
Proof of charitable activities
Step 5: Grant of Registration
Upon satisfaction, the department issues a 12AB Registration Certificate with a Unique Registration Number (URN).
Validity of 12A / 12AA Registration
Provisional registration: Valid for 3 years
Regular registration: Valid for 5 years
Renewal must be applied before expiry to continue tax benefits.
Compliance After 12A Registration
After obtaining registration, NGOs must comply with:
Filing ITR-7 every year
Maintaining proper books of accounts
Applying income only for charitable purposes
Filing audit report if income exceeds limits
Timely renewal of registration
Non-compliance may lead to cancellation of registration.
Difference Between 12A, 12AA, and 12AB
| Particulars | 12A | 12AA | 12AB |
|---|---|---|---|
| Purpose | Eligibility | Registration | New Registration System |
| Status | Active | Replaced | Currently Applicable |
| Validity | Lifetime (earlier) | Lifetime (earlier) | 3–5 Years |
| Process | Offline/Earlier | Offline/Earlier | Fully Online |
Common Reasons for Rejection
Applications may be rejected due to:
Non-charitable objects
Incomplete documents
Lack of genuine activities
Profit-oriented operations
Mismatch in financial records
Professional guidance helps avoid rejection.
Conclusion
Online 12A and 12AA Registration in India is a crucial step for NGOs, trusts, and societies to enjoy income tax exemption and operate sustainably. Although 12AA has now been replaced by 12AB, the objective remains the same—ensuring that genuine charitable organizations receive tax benefits.
Timely registration, proper documentation, and regular compliance ensure long-term tax savings and credibility for charitable institutions.
