12A Registration
Income tax exemption for a charitable institution on the income it applies to its objects.
Registration under Section 12A is what makes a charitable organisation exempt from income tax on the income it applies to its objects. Without it, a trust, society or Section 8 company is taxed on its surplus like any other entity, however charitable its purpose.
It is granted by the Commissioner of Income Tax (Exemptions) after examining both the constitution and the activities. New organisations obtain a provisional registration first and convert it to regular registration once they have a record of activity to show.
What this costs
Basic
₹9,404 plus GST
- Application prepared for you
- Application filed with the department
- 12A Registration Number
- 12A Certificate
What the Commissioner examines
- Whether the objects fall within charitable purpose as defined in Section 2(15)
- Whether the trust deed or memorandum prohibits distribution of income to members or trustees
- Whether there is a dissolution clause passing assets to a body with similar objects
- Whether the activities actually carried on match the stated objects
- Whether any part of the income benefits the founders or specified persons
- Whether the accounts are properly maintained
The eighty-five per cent rule
Exemption is not unconditional. At least eighty-five per cent of income must be applied to the objects during the year. Where it is not, the shortfall can be accumulated for a specified purpose, but only by filing the prescribed form within the time allowed and investing the accumulated amount in permitted modes.
Accumulating without filing the form, or holding funds outside the permitted investments, costs the exemption on that amount. It is the most common way a registered organisation ends up with a tax liability.
Registration is no longer permanent
Registrations are now granted for a fixed period rather than indefinitely, and must be renewed before expiry.
Letting a registration lapse exposes the organisation’s income to tax for the intervening period, and re-registration does not cure that retrospectively. The renewal date is worth diarising the day the order arrives.
How we handle it
- 1 Reviewing the constitution We check the objects, the non-distribution clause and the dissolution clause, since defects there are the usual ground for refusal.
- 2 Building the activity record Accounts, reports and supporting evidence are compiled to show the work is genuine.
- 3 Filing The application is filed online in the prescribed form with the complete document set.
- 4 Answering queries The Commissioner commonly raises written queries, and we file the responses within the time allowed.
- 5 Order issued The registration order is issued, and we set out the compliance that keeps it alive.
Frequently asked questions
Is my organisation exempt automatically once registered as a trust?
No. Registration with the Charity Commissioner or Registrar creates the entity. Section 12A registration is a separate application to the income tax authorities, and without it the income is taxable.
Can a newly formed organisation apply?
Yes. Provisional registration is available before activities begin, and is converted to regular registration once there is a record of work to show.
What is the eighty-five per cent rule?
At least eighty-five per cent of income must be applied to the objects each year. A shortfall can be accumulated only by filing the prescribed form in time and holding the funds in permitted investments.
Does registration expire?
Yes. Registrations are granted for a fixed period and must be renewed before expiry. A lapse exposes income to tax for the intervening period.
Do I still file a return if exempt?
Yes. Form ITR-7 must be filed every year even where all income is exempt. Failing to file can itself jeopardise the exemption.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about 12A Registration
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
Request This Service
More in NGO, Trust & Society
Have a Legal or Documentation Need?
Talk to our experts today. Transparent pricing, fast processing and dedicated support.