Income Tax Department exemption approvals under Section 12A (100% Tax-Free NGO Surplus) & Section 80G (50% Tax Deduction for Donors) on Form 10A / 10AB.
Under the Income Tax Act, 1961, forming an NGO (Trust, Society, or Section 8 Company) is only the first step. Without Section 12A registration, all donations, grants, and operational surplus are taxed at commercial corporate rates (up to 30%+). Furthermore, without Section 80G approval, corporate donors and philanthropists cannot claim income tax deductions on their contributions.
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Following recent statutory amendments by the CBDT, all new non-profits receive Provisional Approval (valid for 3 years) via electronic Form 10A within 15 days. Organizations that have commenced activities subsequently file Form 10AB for Permanent Registration (valid for 5 years).
Select the ideal compliance and filing tier for your business requirements.
Distinguish between institutional tax exemption on NGO surplus and tax deductions offered to individual/corporate donors.
| Key Feature / Parameter |
Section 12A (Provisional)
Current Service
|
Section 12A (Permanent)
|
Section 80G (Provisional)
|
Section 80G (Permanent)
|
|---|---|---|---|---|
| Core Beneficiary of Exemption | The Non-Profit Organization | The Non-Profit Organization | The Donors & Philanthropists | The Donors & Philanthropists |
| Statutory Application Form | Form 10A (Electronic Portal) | Form 10AB (CIT Scrutiny) | Form 10A (Electronic Portal) | Form 10AB (CIT Scrutiny) |
| Validity Term Granted | 3 Years from AY applied | 5 Years Renewable | 3 Years from AY applied | 5 Years Renewable |
| Exemption Mechanism | 100% Tax Exemption on Surplus | 100% Tax Exemption on Surplus | 50% Tax Deduction on Donation | 50% Tax Deduction on Donation |
| Corporate CSR Grant Eligibility | Initial Gateway for CSR Applications | Mandatory for Large Corporate CSR | Mandatory for Donors Tax Credit | Mandatory for Institutional Grants |
Please keep digital color copies (PDF, JPG, or PNG) ready for filing.
Certified copy of governing incorporation charter
Valid PAN card issued in the non-profit entity name
NITI Aayog registration acknowledgment certificate
PAN and Aadhaar copies of all governing board members
If entity has commenced operations, or bank statement if newly formed
Summary of social, educational, medical, or relief work undertaken
Examine Trust Deed/MOA clauses to ensure alignment with Section 2(15) charitable definitions.
Collate financial records, activity notes, and draft statutory affidavits.
Submit digital application under DSC to the jurisdictional Commissioner of Income Tax.
Track assessment, resolve tax queries, and obtain official Form 10AC/10AD approval order.
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