12A and 80G: The Tax Foundation Every NGO Needs for CSR Funding

If your NGO wants to receive CSR funding, donor contributions, or government grants in India, 12A and 80G registrations are not optional. They are the legal foundation on which every other NGO certification including CSR-1 is built.

Yet many NGOs treat 12A and 80G as a one-time checkbox, obtained years ago and forgotten. In 2026, that approach is dangerous. Both registrations now have a 5-year validity under the Income Tax Act, and thousands of NGOs face the real risk of operating on expired certificates — exposing their donors to lost tax benefits and themselves to income tax liability.

What are 12A and 80G — and what is the difference?

12A (now called 12AB) exempts your NGO's income from income tax, as long as it is applied for approved charitable purposes. Without 12A, your NGO pays income tax like any commercial entity — even on donations received.

80G allows donors — individuals or companies — to claim a tax deduction for donations made to your NGO. For CSR purposes, this means the company can claim the CSR spend as a deductible expense while also counting it toward their CSR obligation. Together, they form the tax backbone of a credible NGO. One without the other is incomplete: 80G is only valid if 12A is active.

Why CSR Funders Specifically Require Both

When a company transfers CSR funds to an NGO, two things happen simultaneously in their accounting: the expenditure is counted toward their mandatory 2% CSR obligation under Section 135, and the company may also claim the expenditure as a business deduction — but only if the receiving NGO has valid 80G. Without your NGO's valid 80G certificate, the company loses the tax deduction benefit. Many CSR teams are instructed by their CFOs to only fund 80G-registered NGOs — not as a preference, but as a financial policy. CSR-1 registration also cannot be filed without valid 12A and 80G.

Validity and Renewal Deadlines — 2026 Update

Prior to 2021, 12A registrations were granted permanently. Since April 2021, all registrations are valid for only 5 years and must be renewed. New registrations and renewals use Form 10A and Form 10AB respectively through the Income Tax e-Filing portal at incometax.gov.in. For NGOs that received 12A/80G in FY 2021-22, the certificates expired on March 31, 2026. The renewal deadline was September 30, 2025. If you missed this, contact a practising CA immediately. Going forward, always file renewal at least 6 months before expiry. Processing time is typically 3 to 6 months.

How to Apply — Step by Step

Step 1: Log in to the Income Tax e-Filing portal at incometax.gov.in with the NGO PAN credentials. Step 2: Navigate to e-File, then Income Tax Forms, then Form 10A for new registration or Form 10AB for renewal. Select the relevant assessment year. Step 3: Fill in organisation name, PAN, registration details, list of activities, financial summary, and trustee details. Step 4: Upload supporting documents as scanned PDFs. Step 5: Submit with digital signature or EVC and track the application. The Income Tax Department may issue notices for clarification — respond promptly. Step 6: Receive your certificate specifying the registration number, effective date and 5-year validity period.

Documents Required

  • PAN card of the NGO
  • Registration Certificate (Trust Deed, Society Certificate or Certificate of Incorporation)
  • Objects clause of the trust deed or memorandum of association
  • Financial statements for the last 3 years
  • List of trustees/directors with PAN and Aadhaar details
  • Bank account details of the NGO
  • Annual report if published
  • Details of activities undertaken in the last 3 years

Annual Compliance After Registration

  • File ITR-7 annually — due October 31 each year
  • Maintain audited accounts — UDIN mandatory on all CA-certified documents from FY 2022-23
  • File Form 10B or 10BB — audit report filed alongside ITR-7
  • Issue 80G certificates to donors — specifying donation amount and NGO registration details
  • File Form 10BD — statement of donations received, due May 31
  • Maintain utilisation records — all CSR funds must be utilised for the stated purpose

Frequently Asked Questions

What is the difference between 12A and 12AB? 12AB is the updated version introduced in 2021. All NGOs previously holding 12A have been migrated to 12AB. The purpose — income tax exemption for the NGO — remains unchanged.

Can an NGO have 12A without 80G? Yes, but for CSR funding both are practically required. 80G is only granted after 12A is active. The correct sequence is: obtain 12A first, then apply for 80G.

What happens if 12A expires? The NGO's income becomes taxable, 80G automatically becomes invalid, CSR-1 becomes invalid, and the NGO cannot legally receive CSR funds until 12A is restored.

How does PATVAAR verify 12A and 80G? PATVAAR cross-references certificates against the Income Tax Department database, verifies the UDIN on CA-certified documents, and confirms the certificate matches the NGO PAN. This forms part of the Compliance pillar P01 of the PATVAAR Trust Score.