Income Tax Registrations for Charitable Entities

What are income tax registrations for charitable entities?

A trust, society or Section 8 company isn't tax-exempt just because it's charitable. To have its income exempt, it needs registration with the Income Tax Department — commonly known as 12A or 12AB registration. For donors to get a tax deduction, it needs 80G approval.

Registration happens in stages: provisional registration for new organisations, then regular registration, which must be renewed periodically. From tax year 2026-27, the Income-tax Act, 2025 carries this regime into a consolidated chapter for registered non-profit organisations.

The key terms

What charities need to know:

12AB registration

Registration that makes income applied to charitable purposes exempt from tax.

80G approval

Approval that lets donors claim a deduction for donations.

Provisional registration

Granted to new organisations for an initial period, usually three years, before activities are fully established.

Regular registration

Granted after review of activities, for five years (longer validity for some smaller organisations), and then renewed.

Form 10A / 10AB

The forms used under the 1961 Act for provisional and regular registration or renewal.

Genuineness of activities

The Commissioner checks that activities are genuine and objects are being followed.

Specified violations

Breaches that can lead to cancellation, such as applying income to non-charitable purposes.

Why it matters

Registration is the foundation of a charity's tax position:

Tax exemption

Without registration, surplus is taxed at normal rates.

Donor deductions

80G approval helps attract individual and corporate donors.

CSR eligibility

CSR implementing agencies need 12AB and 80G registration.

Deadlines

Missing the window for regular registration or renewal can mean losing exemption.

Cancellation risk

Specified violations can lead to cancellation.

Exit tax

Losing registration can trigger tax on accreted income.

Law changes

The 2025 Act changes terminology and some rules.

Who is this for?

Religious trusts and mixed charitable-religious trusts have specific rules; we advise on those too.

Registration stages

How the stages work:

What we'll need from you

Registration documents

Trust deed, society registration or company incorporation documents.

PAN

The organisation's PAN.

Activity details

Description and evidence of activities.

Accounts

Financial statements for years of existence.

Governance details

Trustees, governing body or directors.

Other registrations

FCRA, NGO Darpan or others, if any.

Pricing is per application; responses to queries included.

How we handle registration

Our approach:

1. 1

   Check timelines

   We identify which registration applies and the deadline.

2. 2

   Review documents

   Objects and governance are checked for issues that could cause rejection.

3. 3

   Prepare the application

   Forms are prepared with activity evidence.

4. 4

   File

   The application is filed online.

5. 5

   Respond to queries

   Queries from the Commissioner are answered.

6. 6

   Track validity

   Expiry dates are added to your compliance calendar.

Keeping registration safe

After registration:

Apply income

Apply at least 85% of income to objects, or accumulate properly.

Audit and return

Get accounts audited and file the return on time.

Donation reporting

File donation statements and issue donor certificates.

Stay within objects

Don't carry on activities outside the registered objects without updating them.

Report changes

Report changes to objects promptly.

Renew

Apply for renewal well before expiry.

Benefits and responsibilities