Guide to 12A Registration for NGOs and Section 8 Companies

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Starting an NGO or Section 8 Company in India requires several legal registrations. One of the most important is 12A registration. It helps your organization gain tax exemption on income. At NGO Experts, I help organizations get registered legally and efficiently. This article explains the

What is 12A Registration?

12A registration is issued by the Income Tax Department of India. It exempts NGOs and non-profit organizations from paying income tax. If your NGO or Section 8 Company has this certificate, your income is not taxed. This allows you to use more funds for your social work.

NGOs and trusts working without profit must apply for this registration. It is a legal process. I recommend applying for it soon after the NGO is formed.

Who Should Apply for 12A Registration?

Any non-profit entity can apply for 12A. It includes:

  • Trusts

  • Societies

  • Section 8 Companies

If your organization is registered and running charitable activities, you are eligible. This applies whether you are working in education, health, women’s welfare, or any other area.

At NGO Experts, I assist with all types of registrations. From Section 8 Company registration to tax exemptions, I ensure legal compliance.

Benefits of 12A Registration

Having 12A registration offers multiple advantages. These are:

  • Income tax exemption on surplus funds

  • More eligibility for government grants

  • Donors also feel more confident

  • Helps in getting 80G certificate later

  • Assists in proper Income Tax Filing

By saving on tax, you can invest more in your NGO's mission. Your financial burden reduces. You also become more credible in the eyes of government bodies and donors.

How to Apply for 12A Registration

The process is online and structured. You need to file an application with the Commissioner of Income Tax. Here's how it works:

Step 1: Prepare Documents

You must keep the following ready:

  • Trust Deed or Memorandum of Association

  • PAN Card of the NGO

  • Certificate of Registration (Trust/Society/Section 8)

  • Details of trustees or board members

  • Activity reports and financials

These papers are needed for scrutiny. I ensure all are accurate and complete before submission.

Step 2: File Form 10A

This form is submitted on the Income Tax portal. It contains the details of the organization, objectives, and financial records. Upload all documents here. NGO Experts assists with each field in the form.

Step 3: Follow-Up and Approval

Once submitted, the department may ask for clarification. This happens in some cases. I help clients respond quickly and clearly. Once satisfied, the Commissioner grants the 12A certificate.

Documents Required for 12A Registration

Keep these items ready:

  • PAN card of the NGO

  • Registration Certificate

  • Trust deed / MoA / AoA

  • List of Trustees/Directors

  • Bank statements

  • Activity reports

Having all documents reduces delays. At NGO Experts, I do a pre-check of every document. It helps avoid rejections.

Link Between 12A and Section 8 Company Registration

Section 8 Companies are popular among NGOs. These are registered under the Companies Act, 2013. They work for charitable objectives. After Section 8 Company registration, the next step is to apply for 12A.

Why?

Because without 12A, your income is taxable. This eats into your funds. Also, if you want donors to claim tax deductions, you must later apply for 80G too. But 12A comes first.

So, if you are forming a Section 8 Company, make 12A registration your next legal step.

Role of Income Tax Filing for NGOs

Even if you have 12A, you must file returns.

Income Tax Filing is mandatory for every registered NGO. The difference is, with 12A, your income is not taxed. But the return shows your expenses, donations, and savings. It also maintains your compliance status.

I help NGOs file correct and timely returns. Mistakes in filing can affect your 12A status. That’s why I always advise professional help.

Why Choose NGO Experts?

As a legal company, NGO Experts provides trusted services for:

  • Section 8 Company registration

  • 12A and 80G registration

  • NGO audit and annual compliance

  • Income Tax Filing

I handle each case with full attention. From form filling to document collection and follow-ups, I ensure a smooth process. Legal compliance helps your NGO grow faster and stay protected from legal issues.

Conclusion

12A registration is a smart step for any non-profit. It offers major tax benefits and builds your legal identity. Whether you run a trust or a Section 8 Company, apply for this early. Combine it with proper Income Tax Filing and Section 8 Company registration for full compliance.

With NGO Experts, you are never alone in the process. I’m here to help your NGO stay legal, transparent, and impactful.

Let your mission grow without tax worries. Register today.

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