The registration under Sections 12A and 80G permits NGOs in India to secure income tax exemptions and draw in tax-deductible contributions. Section 12A facilitates tax savings on the income of an NGO, whereas Section 80G allows donors to receive tax deductions in accordance with the Income Tax Act.

12A & 80G Certificate

🔹 Section 12A:

  • Deals with registration of charitable/religious trusts or institutions.

  • Needed to claim exemption on income under Section 11 and 12.

  • Without 12A registration, income is taxable even if it is used for charitable purposes.

🔹 Section 80G:

  • Deals with donations made to charitable institutions.

  • If an NGO has 80G registration, donors can claim a deduction on the amount donated (usually 50% or 100% of the donation, depending on the NGO’s certification).

  • Helps the NGO attract more donations since donors get tax benefits.


✅ Summary:

Feature12A Registration80G Registration
Who benefits?The NGO/trust itselfThe donors to the NGO/trust
PurposeTo get income tax exemptionTo let donors get tax deduction
Mandatory?Yes, for tax exemptionOptional, but helpful to attract donors
ApplicabilityCharitable/religious organizationsNGOs with charitable objectives

 

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