🔍 Overview

• Legal Basis: Section 12AB of the Income Tax Act, 1961 (Section 332 of the Income Tax Act, 2025)

• Purpose: Grants tax exemption to the NGO itself on surplus generated from its charitable activities.

• Effect: Without 12AB, an NGO’s income is taxable like any other entity.

📋 Eligibility Criteria

To qualify for provisional 12AB/332 registration, an NGO must:

• Be legally registered in India as a Trust, Society, or Section 8 Company (Foreign NGOs are not eligible for 12AB/332 registration).

• Have not commenced charitable activities after registration (If your NGO has already started charitable activities, then it is not eligible for provisional 12AB/332 registration and must apply directly for final 12AB/332 registration).

• Have charitable or religious objectives only.

• Not engage in non-incidental commercial activities.

📅 Validity

Though the provisional 12AB/332 registration has a validity of 3 years, you are mandated to apply for the final 80G/354 registration within six months of commencement of charitable activities. If you don't do so, you will have to apply for condonation of delay while filing for the final 80G/354 registration.

🚫 You are not eligible for CSR Funding and Government projects without 12AB/332 registration.

📌Point to be noted

If you decide not to apply for provisional 80G/354 registration and instead decide to proceed directly for final registration after commencing charitable activities, you must note a critical compliance point: once charitable activities begin, your NGO becomes ineligible for provisional approval. In such circumstances, you will be required to establish a track record of at least 4–5 months of charitable work and then wait an additional 5–6 months for scrutiny and approval of the final registration application. This results in a total waiting period of approximately 11–12 months from the commencement of activities before obtaining 80G/354 registration.

💰 What do you get from us

• Provisional 12AB/332 registration

• Training notes

• Format of donation receipt 

• Format of membership application form

• Format of membership certificate

• Activity report format

• Cash book