80G and 12A Registration

If you run a charitable trust, society, or Section 8 company in India, two registrations decide whether the work survives the next audit cycle: Section 12AB and Section 80G. The first protects the entity from paying tax on what it raises. The second lets donors claim a deduction for what they give. Miss either, and the fundraising pitch falls apart on the first call with a CFO.

The post-2020 Finance Act regime replaced the old perpetual 12A and 12AA certificates with time-bound 12AB registrations that have to be renewed every five years in Form 10AB. The CBDT has also pushed donor reporting through Form 10BD and donor certificates through Form 10BE, both of which now sit at the centre of every CIT(E) scrutiny. This page walks through how 12AB and 80G are obtained today, what the FY 2026-27 calendar looks like, and what trips up most applicants.

At a Glance

• Who Needs It: Charitable or religious trusts, registered societies, and Section 8 companies that want income tax exemption under Section 11 and want donors to claim a Section 80G deduction.
• Governing Law: Sections 11 to 13 and Section 80G of the Income-tax Act 1961, read with Rules 17A and 11AA of the Income-tax Rules.
• Forms Used: Form 10A for first-time and provisional registration; Form 10AB for renewal, conversion from provisional to regular, and modification of objects.
• Filing Authority: Commissioner of Income-tax (Exemptions) through the Income-tax e-filing portal — DSC of trustees or the authorised signatory required.
• Validity: Provisional registration valid 3 years from approval; regular registration valid 5 years and renewable in Form 10AB six months before expiry.
• Turnaround: Form 10A filing in 5-7 working days after document readiness; CIT(E) order typically in 3-6 months depending on jurisdiction.
• Linked Compliance: Form 10BD donor statement by 31 May every year; Form 10BE certificate to each donor; CSR-1 separately on MCA portal for Section 135 funding.

What's New for FY 2026-27

The 12AB and 80G framework has continued to tighten through CBDT circulars and recent Finance Act adjustments. A few changes matter for any application filed in FY 2026-27.

• Form 10A Cleaner Schema: The e-filing portal now validates trust deed clauses, registered address, and trustee KYC at upload — earlier rejections at the CIT(E) desk for missing fields are now caught upfront.
• Form 10BD AIS Match: Donor-wise statement filed by 31 May is cross-matched against donor ITRs through AIS; any mismatch flags both the trust and the donor, so every donor PAN, amount, and mode must be reconciled before filing.
• Provisional-to-Regular Conversion: Form 10AB for conversion must be filed at least six months before the provisional 3-year period ends; CBDT has reiterated that late conversion forfeits exemption from the date of expiry, not the date of refusal.
• 80G Anonymous Donation Cap: Section 115BBC continues to tax anonymous donations beyond ₹1 lakh or 5% of total donations (whichever is higher) at 30% — receipt books and donor KYC at the donation desk are now standard CIT(E) queries.
• CSR-1 Track Record Test: MCA continues to insist on a documented three-year activity track record for CSR-1 approval, which means a Section 8 company formed in 2024 cannot expect CSR funding eligibility until activity reports for FY 2024-25 onwards are in order.
• Faceless CIT(E) Hearings: Most 12AB and 80G hearings are now faceless — written submissions, activity evidence, and bank statements carry more weight than physical appearance, so documentation quality directly drives approval speed.

Why Both Registrations Matter Together

12AB and 80G are often spoken of as a single registration, but they protect different parts of the same funding story. Each one closes a specific risk the other cannot.

• Entity-Level Tax Saving: Without 12AB, every rupee of surplus the trust earns is taxable as ordinary income — the corpus that funds the next year's programme work shrinks by 30% or more.
• Donor-Side Credibility: Corporate donors and high-net-worth individuals routinely refuse to write cheques without seeing the 80G certificate — without it, the fundraising conversation stalls before it starts.
• CSR Pipeline Eligibility: Section 135 companies cannot route CSR spend through a non-profit that lacks 12AB, 80G, and CSR-1 — three certificates that have to be obtained in sequence.
• FCRA Companion Document: Trusts applying for FCRA registration to receive foreign contribution must show valid 12AB on file — MHA treats a lapsed 12AB as a disqualifying condition.
• Grant Application Eligibility: Most domestic grant-makers, government schemes, and CSR aggregators publish 12AB and 80G as minimum eligibility — without them, the application is filtered out at the first stage.
• Audit and Bank Comfort: Bank accounts opened in trust names, FD placements, and statutory audit reporting all reference the 12AB order — its presence removes friction across the operating year.

How It Actually Works

The process from intent to approved 12AB and 80G certificates follows a stable sequence. Each step has a reason — skipping any one tends to surface at the CIT(E) query stage.

Step 1: Eligibility and Object-Clause Review

Before any form is filed, the trust deed, memorandum of association, or Section 8 incorporation document is read against Section 2(15) — the definition of charitable purpose. If the objects mention commercial activity, profit motive, or member-restricted benefits, the application is at risk of refusal.

Where the operative clauses are loose, a supplementary deed or board-approved amendment is drafted before filing. Tightening object clauses upfront is materially cheaper than defending a CIT(E) refusal six months later.

Step 2: Provisional Versus Regular Route

A newly formed entity with no activity history files for provisional 12AB and provisional 80G under Form 10A — these are valid for three years and let fundraising begin immediately.

An established entity with audited financials and at least one year of charitable activity can apply directly for regular 12AB and 80G, valid for five years. The route picked sets the documentation pack, and it is decided in writing before any form goes in.

Step 3: Form 10A Filing on the E-Filing Portal

Form 10A is filed on the Income-tax e-filing portal using DSC or EVC of an authorised trustee or director. The pack includes the trust deed or incorporation document, PAN of the entity, trustee KYC, registered address proof, audited financials where available, and a board resolution authorising the filing.

Two separate Form 10A applications are filed — one for 12AB and one for 80G. They are linked through the same entity PAN but processed under different sub-clauses and issued as two distinct orders.

Step 4: CIT(E) Verification and Approval

The Commissioner of Income-tax (Exemptions) verifies the application electronically. Most jurisdictions raise one round of queries on object clauses, activity evidence, or application of income.

Written responses with supporting documentation are uploaded through the portal. Once satisfied, the CIT(E) issues the 12AB and 80G registration orders separately, each with a Unique Registration Number that is quoted on every donor receipt and donor certificate.

Step 5: CSR-1 Filing Where Applicable

After 12AB and 80G are received, the non-profit can file CSR-1 on the MCA portal to become eligible for Section 135 CSR funding. CSR-1 needs certified copies of 12AB and 80G, a three-year activity track record, and a board resolution authorising the filing.

Once CSR-1 is acknowledged, the entity is listed on the MCA CSR portal and visible to Section 135 contributing companies as an approved implementing partner.

Step 6: Annual Compliance and Renewal Calendar

Form 10BD is filed by 31 May every year listing donor-wise contributions, and Form 10BE certificates are issued to every donor. The trust audit under Section 12A(1)(b) is conducted where receipts exceed the threshold, and Form 10B or 10BB is filed.

Form 10AB renewal is triggered six months before the five-year 12AB expiry — filing late forfeits exemption from the date of expiry. The same Form 10AB is used for conversion from provisional to regular and for any object-clause modification along the way.

A Real Example: A Section 8 Literacy Company in Pune

Consider a Section 8 company incorporated in Pune in April 2026 to run a children's literacy programme. It plans to raise funds from individual donors and approach one large corporate for CSR in FY 2027-28.

• Provisional 12AB and 80G: Filed in May 2026 through Form 10A; CIT(E) order received in October 2026, valid till March 2029.
• First Year Fundraising: ₹42 lakh raised between November 2026 and March 2027 from 280 individual donors; Form 10BD filed on 28 May 2027; Form 10BE issued to each donor.
• CSR-1 Filing: Filed on the MCA portal in April 2027 with provisional 12AB and 80G — eligible for Section 135 contributions once the activity track record is in place.
• Tax Saved at Entity Level: Of the ₹42 lakh raised, surplus carried forward as corpus application; tax of roughly ₹6-8 lakh that would otherwise apply on undistributed surplus is fully exempt under Section 11.
• Donor-Side Deduction Claimed: The 280 donors collectively claim approximately ₹21 lakh as Section 80G deduction in their ITRs for AY 2027-28, supported by the 10BE certificates issued.

The provisional-to-regular conversion is triggered through Form 10AB by September 2028 — a five-year regular 12AB and 80G are issued thereafter, taking the entity into the next fundraising cycle without a gap.

Annual Compliance After Approval

Getting the certificates is the start of the relationship with the income tax department, not the end. The annual calendar carries several non-negotiable filings.

• Form 10BD by 31 May: Donor-wise statement listing PAN, amount, mode, and donation date for every contribution received in the previous financial year.
• Form 10BE to Donors: Certificate issued to each donor confirming the donation, the trust's 12AB and 80G URNs, and the eligible deduction — this is what the donor uploads as evidence.
• Form 10B or 10BB Audit Report: Where total income before applying Section 11 exceeds the basic exemption limit, the audit report is filed by 31 October by a chartered accountant.
• Income Application Working: 85% of receipts must be applied to charitable objects in the same year; any shortfall must be carried forward through Form 10 and applied within the permitted window.
• ITR-7 Filing: Filed by 31 October every year for trusts requiring audit; includes Schedule J for application of income, Schedule LA for voluntary contributions, and reconciliation with Form 10BD.

Form 10BD is the single most-scrutinised filing in the non-profit calendar — any mismatch with donor AIS flags the trust for CIT(E) re-examination at the next renewal.

Where It Goes Wrong

Most 12AB and 80G refusals or cancellations trace back to a small set of recurring issues. Avoiding these upfront is materially cheaper than appealing later.

• Loose Object Clauses: Trust deeds that mention commercial activity, member benefit, or undefined purposes draw immediate CIT(E) queries — tightening the deed before filing avoids refusal.
• Late Form 10AB Renewal: Filing the renewal after the six-month window — or worse, after expiry — forfeits exemption retroactively from the expiry date, with full taxability of receipts in between.
• Form 10BD Mismatch: Donor PAN entered incorrectly, donation mode misreported, or amounts that do not reconcile with the trust's books — each triggers an AIS mismatch on the donor side.
• Missing 85% Application Working: Trusts that fail to demonstrate 85% application of income and do not file Form 10 for accumulation lose Section 11 exemption to the extent of the shortfall.
• Anonymous Donations Above the Cap: Cash donations without donor identity beyond the Section 115BBC threshold are taxed at 30% — receipt books and donation desk KYC are now standard expectations.
• CSR-1 Without 3-Year Track Record: Section 8 companies that file CSR-1 without three years of documented activity face refusal; provisional 12AB alone is not enough to qualify.
• Activity Inconsistent With Stated Objects: Carrying out activities outside the deed's stated objects — even charitable ones — risks CIT(E) action on the ground that the registration was granted on different stated purposes.

What You Receive at the End

• Section 12AB registration order with Unique Registration Number from CIT(E)
• Section 80G certification order with separate URN for donor deduction purposes
• Provisional or regular registration certificate as per the route filed
• Form 10A acknowledgement and CIT(E) order copies for records and bank submission
• CSR-1 acknowledgement from the MCA portal where applicable
• Documented 5-year renewal calendar with Form 10AB trigger dates
• Annual compliance calendar covering Form 10BD, Form 10BE, Form 10B or 10BB, and ITR-7
• Donor receipt and Form 10BE templates ready for fundraising use
• Object-clause review note and any drafted deed amendments

How to Get Started

Start by sharing the trust deed, society registration certificate, or Section 8 incorporation document along with PAN of the entity and KYC of the trustees or directors. Our team reviews object clauses against Section 2(15), confirms whether the provisional or regular route is appropriate, and lists exactly which supporting documents the CIT(E) jurisdiction is expected to ask for.

Once the document pack is ready, Form 10A is filed within 5-7 working days. Through the 3-6 month CIT(E) review window, queries are handled in writing on the portal, and the 12AB and 80G orders are delivered with URNs ready to print on the first donor receipt. CSR-1 and annual compliance setup follow once the registrations are in hand.