Tax exemption for the NGO and deductions for its donors.
12A (now 12AB) and 80G registrations are two of the most important income-tax approvals for any NGO. Registration under Section 12A/12AB exempts the organisation's surplus income from income tax, provided the funds are applied to its charitable objectives. Registration under Section 80G allows donors to claim a deduction (generally 50%) on the donations they make, which significantly improves the NGO's ability to raise funds. Both registrations are now granted by the Income Tax Department in a time-bound online process, initially on a provisional basis and later renewed. Together they are essential for trusts, societies and Section 8 companies seeking credibility and donor support.
Trusts, societies and Section 8 companies wanting tax exemption and donor-deduction benefits.
Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.
Yes, both are usually applied for together, either provisionally for new NGOs or as fresh/renewal for existing ones.
Typically 50% of the donated amount, subject to the qualifying limits in the Income Tax Act.
Provisional approval is valid for 3 years and regular approval for 5 years, after which renewal is required.
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