12AA Registration – Complete Guide for Trust & NGO Tax Exemption (2026)
12AA registration is a crucial tax exemption registration for charitable trusts, NGOs, and Section 8 companies in India. It allows organizations to claim income tax exemption on surplus income used for charitable purposes.
If you are running or planning to start a trust or NGO, understanding 12AA registration is essential for tax benefits and credibility.
What is 12AA Registration?
12AA registration was granted under the Income Tax Act to charitable or religious institutions to claim exemption on income.
After amendments, 12AA has been replaced by Section 12AB for new registrations. However, the term “12AA registration” is still commonly used.
It allows:
- Exemption on income applied for charitable purposes
- Increased credibility
- Donor confidence
Who Can Apply for 12AA Registration?
The following entities can apply:
- Public Charitable Trust
- Religious Trust
- Section 8 Company
- Society registered under Societies Act
The organization must operate for charitable purposes.
What Are Charitable Purposes?
As per Income Tax Act, charitable purposes include:
- Relief of poor
- Education
- Medical relief
- Yoga
- Preservation of environment
- Advancement of general public utility
Profit-oriented businesses are not eligible.
Benefits of 12AA Registration
- Income tax exemption
- Ability to apply for 80G registration
- Increased donor trust
- Government grant eligibility
- Long-term sustainability
It significantly reduces tax liability.
Documents Required for 12AA Registration
Key documents include:
- Trust Deed / MOA
- Registration Certificate (Trust/Society/Section 8)
- PAN Card of entity
- Financial statements (if existing)
- Activity report
- Bank statements
Proper documentation improves approval chances.
-
Procedure for 12AA Registration
Step 1: Entity Formation
Register your trust or NGO legally.
Step 2: Apply Online
Application is filed online with Income Tax Department in Form 10A.
Step 3: Verification by Department
The Income Tax Officer verifies:
- Objects of trust
- Genuineness of activities
- Financial records
Step 4: Grant of Registration
If satisfied, registration is granted under Section 12AB (earlier 12AA).
Validity of Registration
Earlier 12AA registration was permanent.
Now under 12AB:- Registration is granted for 5 years
- Renewal required after expiry
Common Reasons for Rejection
- Commercial activities dominating
- Improper trust deed
- Lack of genuine charitable activity
- Incomplete documentation
Professional drafting is important.
Difference Between 12AA and 80G
|
Basis |
12AA |
80G |
|
Purpose |
Income exemption |
Donor tax deduction |
|
Who benefits |
Trust |
Donor |
|
Mandatory? |
Yes for exemption |
Optional but recommended |
Both registrations are often applied together.
FAQs – 12AA Registration
Is 12AA still valid?
Now replaced by Section 12AB, but commonly referred as 12AA.
Can new trust apply?
Yes, newly formed trusts can apply.
Is renewal required?
Yes, under 12AB framework.
Can religious trust apply?
Yes, subject to compliance.
