What is 12A Registration?
12A registration is a legal certificate that gives tax benefits to NGOs. It comes from the Income Tax Act. Once approved, donations made to the NGO become exempted from tax. This means the NGO can use more funds for its projects instead of paying taxes. I believe this makes 12A a foundation step for any NGO.
Why is 12A Registration Important?
Without 12A, an NGO has to pay tax on donations and grants. This reduces the funds available for social work. With 12A, NGOs enjoy full exemptions, which builds trust with donors. Donors also feel safe knowing their contribution is legally supported. If you are planning the process to register NGO, then adding 12A in the early stage is wise.
Documents Needed for 12A Registration
To apply for 12A, you need a clear set of documents. I always advise NGOs to prepare these before applying:
- Copy of PAN card of the NGO
- Trust deed, memorandum, or society registration certificate
- Address proof of the NGO office
- List of trustees or members
- Details of past activities, if any
- Bank account details of the NGO
Having all these ready makes the application smooth and quick.
Process of 12A Registration
The process to register NGO and get 12A is now fully online. This makes it simple and faster. Here are the steps I usually guide NGOs through:
- Create an account on the Income Tax portal.
- Fill Form 10A with all details of the NGO.
- Upload the required documents in the given format.
- Submit the form online with a digital signature or EVC.
- Wait for verification by the Income Tax Department.
After verification, the registration certificate is issued. This certificate has lifetime validity unless canceled.
Role of Darpan Portal Registration
While applying for 12A, it is also important to complete darpan portal registration. This is managed by NITI Aayog and is mandatory for NGOs that want government funding. When I assist NGOs, I always connect both processes. Together, they give the NGO a strong legal base and open doors for future grants.
Benefits of Getting 12A Registration
12A registration gives many direct benefits. Some of them are:
- Complete tax exemption on income and donations
- Improved trust with donors and government bodies
- Eligibility for grants from CSR and government schemes
- Long-term growth and stability of the NGO
When I explain this to NGOs, they see that 12A is not just a tax rule, but also a growth tool.
Common Mistakes to Avoid
Many NGOs delay the process, thinking it is complicated. Others file incomplete documents, which causes rejection. My advice is simple: start early, prepare documents, and take expert help if needed. With guidance, the process is smooth.
Conclusion
12A registration is the backbone of financial growth for NGOs. It ensures that donations and funds are fully used for social projects without tax cuts. If you are learning about the process to register NGO, make 12A one of your first steps. Also, complete darpan portal registration side by side to secure your NGO’s credibility. At NGO Experts, I help NGOs with each step so they can focus on what truly matters—serving society.
