The renewal of 12A and 80G registration must be done every five years before the expiry of the existing registration. While there is no fixed annual date, the application for renewal should be submitted at least six months prior to the expiry of the current registration period. This ensures continued eligibility for tax exemptions and deductions. The renewal process is done through Form 10AB on the income tax portal. Timely renewal is crucial, as failure to do so may result in the loss of registration and associated tax benefits for the trust or NGO under sections 12A and 80G.
Section 12A/12AA: Income Tax Exemption for Charitable Institutions
- Purpose: Registration under Section 12A/12AA certifies that the Income Tax authorities recognize the institution as established for a charitable purpose.
- Benefit: This recognition grants the institution exemption from paying income tax, provided it satisfies other compliance requirements.
- Distinction: Section 12A applies to institutions registered before 1996, while Section 12AA applies to those registered after 1996.
- Requirement: NGOs, regardless of their structure (society, trust, or not-for-profit company), must obtain 12A certification to avail tax benefits.
Section 80G: Donor Benefits and Government Funding Eligibility
- Purpose: Registration under Section 80G does not provide direct tax benefits to the charitable institution itself. Instead, its primary function is “to incentivise their donors to make contributions” by enabling them to claim tax benefits on their donations.
- Government Funding: A crucial point is that “only the NGOs that have registered under both Section 12A and 80G are eligible for availing of government funding.” Registration under both sections is also “mandatory when the organisations intend to receive or receive any grant or assistance from the Central Government or State Government.”
Revalidation Procedure (Form 10A / 10AB)
The revalidation process is conducted online through the E-filing portal of the IT department.
- Initial Revalidation/Registration: Institutions must make an application to the Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) online in Form 10A.
- Steps: Login to the e-filing portal, navigate to ‘Income Tax Forms’ under the e-File tab, select ‘Form 10A’ and the relevant Assessment Year, choose ‘Prepare and Submit Online,’ fill in details and attach documents, and submit using EVC or Digital Signatures.
- DARPAN Portal Requirement: NGOs applying for registration/revalidation under Section 80G “are mandatorily required to provide the details of their Registration number with the DARPAN portal of Niti Aayog.”
- Documents Required: A comprehensive list of self-certified copies is required, including:
- Incorporation documents (Societies/Trust).
- Registration with relevant registrars (Companies, Societies, Firms, Public Trusts).
- FCRA registration (if applicable).
- Existing 12A/12AA/12AB registration order.
- Annual accounts (up to three years prior to application) for existing entities.
- Annual accounts and audit report under Section 44AB (if income includes business profits or a business undertaking is held under Section 11(4A)).
- Documents showing object modification/adoption.
- Notes on activities.
- DARPAN registration details (if applicable).
Issuance and Validity of Revalidated Registration
- Approval Timeline: After April 1, 2021, an order granting revalidated registration is passed “within three months” of filing the application.
- Certificate & URN: The PCIT/CIT will issue an approval order in Form No. 10AC and provide a “16 digit Unique Registration Number (URN).” Rejection orders are also passed in Form No. 10AC.
- Validity Periods and Renewal: General Rule: Revalidated registration under 12A and/or 80G is generally “valid for a period of five years, after which it needs to be revalidated again.”
- Renewal Application: Re-application after five years must be made “at least six months before the expiry of the validity period of the registration” using Form No. 10AB.
- Order after Renewal: Upon receiving Form 10AB, the PCIT/CIT will issue an order of registration, cancellation, or rejection in Form No. 10AD.
- Significant Changes (Post-March 31, 2025 applications): Extended 12A/12AB Validity: For “small trusts and charitable institutions whose total income did not exceed (before exemption) Rs. 5 Crore in each of the preceding two years,” the validity period under Section 12AA/12AB has been extended from 5 to 10 years. This applies to applications made “after March 31, 2025.”
- Small Trusts Renewal: Small trusts whose approval was valid until March 31, 2026, still need to apply for renewal by September 30, 2025, but their renewal will be for 10 years instead of 5.
- 80G Remains 5 Years: Trusts and institutions “must still apply for registration renewal under section 80G every 5 years.”
- Cancellation Criteria: Amendments state that renewal/registration will now only be subject to cancellation based on “false and incorrect information,” unlike previously where an incomplete application could lead to rejection.
- Scrutiny: The PCIT/CIT can “demand from the applicant further documents to satisfy the genuineness of the activities” and compliance with other relevant laws.
Consequences of Non-Registration/Non-Revalidation
Failure to obtain or revalidate registration under Sections 12A/12AB and 80G can have significant financial and operational consequences for charitable institutions, including NGOs, trusts, and societies. Some of the major outcomes are:
- Loss of Income Tax Exemption
- Without a valid 12A/12AB registration, the institution will not be treated as a charitable entity for income tax purposes.
- This means all voluntary contributions, grants, and donations will be fully taxable at the applicable slab rate, drastically reducing the funds available for charitable activities.
- Reduced Donor Confidence
- Donors prefer contributing to organizations that provide them with tax deduction benefits under Section 80G.
- If an NGO fails to revalidate 80G registration, donors cannot claim tax benefits on their contributions, leading to a decline in donations and donor trust.
- Ineligibility for Government Grants and CSR Funding
- Government bodies, as well as many corporate entities (for CSR activities), require NGOs to have both 12A and 80G approvals.
- Non-registration or lapsed validity makes the organization ineligible for central/state government schemes, financial assistance, or corporate partnerships.
- Compliance Risks and Penalties
- Non-registered NGOs are treated like regular taxable entities, meaning they must file income tax returns without exemptions.
- If income is not properly reported or tax not paid, the institution may face interest, penalties, and legal scrutiny from tax authorities.
- Operational and Strategic Setback
- Registration provides formal recognition of the NGO’s charitable nature. Without it, the NGO risks being seen as a private association rather than a public-serving body.
- This affects credibility, partnerships, and the ability to expand projects, especially with international donors and funding agencies who require legal compliance proof.
- Missed Long-Term Benefits
- Small trusts (income below ₹5 crore) now enjoy extended 10-year validity for 12AB registration (post-March 2025 applications).
- Institutions that fail to revalidate on time will miss out on this long-term security and stability in compliance.
👉 In short: An NGO or charitable trust that does not register or revalidate under 12A/12AB and 80G not only loses its tax advantages but also weakens its credibility, fundraising ability, and access to government/CSR support.
FAQs
To confirm the genuineness of charitable activities and continue availing tax exemptions and donor-related benefits under the Income Tax Act.
All NGOs, trusts, societies, and not-for-profit companies already registered under 12A/80G must revalidate to retain their tax benefits.
12A applies to registrations before 1996; 12AA applies to those granted after 1996 for charitable income tax exemption.
No, 80G benefits donors by allowing tax deductions on donations made to registered NGOs.
Yes, for government funding and donor tax benefits, registration under both sections is required.
Form 10A is used for initial registration or revalidation of 12A and 80G through the income tax e-filing portal.
Form 10AB is used to renew registrations after five years or for modifications in previously granted registrations.
Generally five years; small trusts may get 10 years under 12A/12AB if conditions are met.
80G registration remains valid for five years, even for small trusts eligible for extended 12A validity.
Renewal must be filed at least six months before the current registration expires using Form 10AB.
For 80G registration, NGOs must provide their registration number from the Niti Aayog DARPAN portal.
Documents include incorporation proof, old registration orders, financials, FCRA (if any), DARPAN details, and activity notes.
Form 10AC is the approval or rejection order issued by PCIT/CIT after processing Form 10A.
It is the Unique Registration Number issued upon approval of 12A/80G registration or revalidation.
Its entire income, including donations, becomes taxable and no tax exemption benefits can be availed.
Yes, if false or incorrect information is provided or if the institution fails to comply with applicable laws.
No, now rejections happen only on grounds of false/inaccurate information, not merely for incompleteness.
They can request additional documents to verify the institution’s genuineness and compliance with legal requirements.
No, registration under both sections is mandatory for receiving any Central or State Government assistance.