12A & 80G: Renew Right, Stay Eligible

Introduction: For NGOs in India, staying compliant with tax regulations is key to maintaining credibility and funding opportunities. Two important registrations under the Income Tax Act—Section 12A and Section 80G—play a vital role in this.

12A provides tax exemption on the organization’s income.80G allows donors to claim tax deductions on donations made to eligible NGOs. Besides, 12A / 80G are important documents for other laws such as CSR.

As per recent amendments, both now require renewal every five years and thereafter as per the Finance bill 2025, renewal will be done for 5/10 years depending on the total income of such NGO in the last 2 years. Keeping these registrations up to date ensures continued tax benefits and eligibility for donor support.

In this blog, we’ll break down the 12A and 80G renewal processes, timelines, and key compliance tips to help your NGO stay on track.

• Who is required to apply for renewals? All charitable and religious organizations (including NGOs, trusts, societies, and Section 8 companies) that are already registered under Section 12A and/or Section 80G are required to renew their registration as per the guidelines issued by the Income Tax Department.
  

  Applicable to:

  • Organizations whose existing 5-year registration is nearing expiry

  • NGOs that received provisional registration and need to convert it into regular registration.
    

• Why 12A/80G renewal important?

  • Retain Tax-Exempt Status: Renewal of 12A ensures your NGO continues to be exempt from income tax on surplus income.

  • Enable Donor Tax Benefits: 80G renewal allows donors to claim deductions, encouraging sustained contributions.

  • Ensure Legal Compliance: Regular renewal keeps your organization aligned with updated Income Tax regulations.

  • Prevent Exposure to Exit Tax: Lapse in registration may be treated as cessation of charitable status, triggering tax on accumulated assets/income under Section 115TD.

  • Build Donor Trust: Up-to-date registrations reflect transparency and boost donor confidence in your NGO’s credibility.
    

• What is the timeline to apply for renewal for 12A/80G?

  The timeline to apply for renewal for 12A/80G for existing trusts is at least 6 months before the expiry of the validity period. 

  For example: If the Trust’s 12A certificate mentions validity to be AY (‘Assessment year) 2022-23 - AY 2026-27, this would imply that the certificate would expire on 31/03/2026 and application will have to be filed on or before 30/09/2025.
  

• What are the implications if not filed within the time limit? Timely renewal of 12A and 80G registrations is crucial for any NGO. Missing the deadline can lead to serious consequences, both financially and reputationally.

  • Taxability:  Without a valid 12A, the NGO loses its income tax exemption and may be taxed at regular rates.

  • Donors lose their tax benefit: Donations made during the lapse period won’t qualify for 80G deductions-making it harder to attract contributions.

  • No CSR funding: Most corporates require valid 12A/80G status for CSR grants. A lapse could mean losing out on key funding.

  • Red flag in Due Diligence: Missing deadlines can damage the NGO’s credibility with donors, auditors, and regulatory bodies.

  • No backdated relief: Exemptions and deductions resume only after fresh approval-there’s no retrospective benefit for the missed period. However, if there is a reasonable cause for delay, the Principal Commissioner or Commissioner may condone the delay, and the application shall be deemed to have been filed within the prescribed time.

  • Exit Tax under Section 115TD(3)(iii): Delay in renewal may be treated as cessation of charitable status, making accumulated assets/income liable to exit tax—posing a heavy financial risk.
    

• Once applied, what shall be the validity of the certificates? Once a trust or institution renews its 12A certificate, the default validity is 5 years. However, if the total income (before claiming exemption under Sections 11 and 12) is INR 5 crores or less in each of the two years preceding the application year, the renewed certificate will be valid for 10 years.

  Example: If your certificate is currently valid from AY 2027–28 to AY 2031–32 (i.e., up to 31st March 2031), you must apply for renewal by 30th September 2030 (in FY 2030–31).In this case, the income of FY 2028–29 and FY 2029–30 will be checked to determine eligibility for 10-year validity.

  If income exceeds INR 5 crores in either year, the renewed certificate will be valid for 5 years; otherwise, 10 years

  Important note: 

  Applicability of Extended Validity for 12A:

  There is a view that entities with ongoing 12A registrations may already be eligible for 10-year validity based on past financial thresholds. However, the absence of an official clarification or updated certificate reflecting the same continues to raise interpretational questions. As of now, registration certificates continue to reflect a 5-year validity period and the charity may be required to file the application before 30.9.2025 irrespective of its past income.

  Status of 80G validity post renewal : 

  Though the Finance bill 2025 amends the validity period for registrations obtained under section 12A (ie 5/10 years based on threshold in previous years), the same is not yet explicitly stated for 80G registrations. In the absence of explicit amendment, the validity period for 80G registrations continues to be understood as 5 years, as per the existing registration certificates being issued.

  This continues to be an area where further clarification is awaited.
  

• Is there any prescribed form and checklist to follow?

  The prescribed form for existing trusts who are already registered under section 12AB due for renewal is Form 10AB. As per the form, here is the checklist of documents that is required to be uploaded.
  

• What is the process for to apply for renewal for 12A/80G? In order to claim exemption, a charitable or religious trust or institution, including an NGO, should make an application to the Principal Commissioner of Income Tax or Commissioner of Income Tax online in Form 10AB. The procedure of applying for revalidation/registration are mentioned below: Step 1: Log in to the E-filing portal of the IT department

  Step 2: Go to the ‘Income Tax Forms’ under the e-File tab.

  Step 3: Choose the Form Name as ‘Form 10AB’ and select the relevant Assessment Year from the drop-down list.

  Step 4: Choose the ‘Prepare and Submit Online’ option in the submission mode.

  Step 5: Fill in all the details required in the form and attach the applicable attachments.

  Step 6: Submit the form using EVC (Electronic Verification Code) or Digital Signatures as required during return filing 

  
  

• Any preparatory tips to keep in mind?

  Apart from the documents required to be submitted as per Form 10AB, it is suggested to keep the list ready in parallel or assess the preparedness before applying for the renewal. Please note it is a suggested practice and notice in case served may call out for similar requirements.

  In addition to the above, adherence to Rule 17AA to be done. Rule 17AA as per Income tax rules, 1962 mandates that charitable organizations, including trusts, universities, hospitals, and other institutions, must maintain detailed books of accounts and documents to comply with the Income Tax Act, specifically under Section 10(23C) and Section 12A to ensure transparency and proper accounting of income, contributions, and expenditures.
  

• Other Important things to note during renewal

  • Incomplete Documentation: Submitting incomplete/wrong documents is one of the common mistakes for rejection. Eg., Registration certificates, Trust Deed, MOA PAN etc.

  • Incorrect Filing of Form 10AB: Form 10AB needs to be efficiently filled and submitted on-line. Missing fields, wrong class choice, or wrong supporting documents can cause rejection

  • Financial Non-Compliance: Organizations ought to preserve proper accounting statistics and feature their accounts audited yearly.

  • Non-Registration under 12A: A corporation ought to be registered under Section 12A before applying for 80G Registration. Without 12A, the application may be rejected mechanically. 

  
  

• How Aria CFO Services Can Help? Aria CFO Services brings over 14 years of dedicated experience in the NGO sector to help organizations strengthen their financial systems and maintain regulatory compliance. Whether it's navigating complex tax laws, ensuring readiness for 12A/80G renewals, or building the internal capacity of finance teams, Aria offers end-to-end support tailored for nonprofits.

  
  

  Here’s how we help:

  • Build capacity of NGO finance teams through targeted training

  • Conduct internal audits to spot gaps and ensure compliance.

  • Provide expert advice on Income Tax and FCRA matters.

  • Offer regulatory updates to keep your NGO informed and prepared.

  • Help prevent compliance lapses that could risk renewals

Get in touch with us today - Send a meeting request

Conclusion Navigating the complexities of renewals is essential for NPOs to ensure compliance and secure tax benefits. With frequent updates and detailed requirements, it’s crucial to avoid common pitfalls and adhere to deadlines. Aria CFO’s expert consulting can simplify this process, offering guidance, accurate reporting, and up-to-date regulatory insights. Partnering with us ensures your filings are accurate and timely, allowing you to focus on your mission and make a greater impact.