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We handle the complete process for your 12AA Registration right here in New Delhi. Get certified quickly and legally with our expert local team.
Professional Fee: ₹5,799 | Govt Fee: ₹0 | Total: ₹5,799 (incl. govt fees)
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Section 12AA (now re-enacted and modernized as Section 12A and Section 12AB under the Income Tax Act, 1961) is the core statutory registration that grants non-profit organizations—including Section 8 Companies, Public Charitable Trusts, and Registered Societies—complete exemption from paying Indian income tax on their surplus income and donations. In the absence of a valid Section 12A/12AB registration, any philanthropic trust or NGO operating in India is treated by the Income Tax Department as a standard commercial entity, and its entire annual receipt of donations, grants, and operational surplus is taxed at the maximum marginal corporate tax rates (up to 30% plus surcharges). Obtaining Section 12A/12AB registration is the foundational shield that preserves 100% of your charitable funds for actual social impact.
Under the Finance Act 2020 reforms, the legacy permanent 12AA registrations were transitioned to the digital 12AB framework. Newly established NGOs must now first apply for a Provisional Section 12AB Registration via Form 10A on the Income Tax e-Filing portal, which is granted for a duration of 3 years. Once the organization commences its charitable activities (or at least 6 months prior to the expiry of the provisional registration), it must apply for a Regular / Permanent Section 12AB Registration via Form 10AB, which is valid for 5 years and subject to periodic renewal. At IPRO, our Chartered Accountants and tax exemption specialists manage the entire electronic filing lifecycle—from auditing trust deeds and compiling expenditure proofs to representing your institution before the Commissioner of Income Tax (Exemption) [CIT(E)] to ensure swift, unconditional approval.
Transparent, all-inclusive – no hidden line items.
Inclusive of professional + estimated govt fee
I-Pro specialist handling, drafting & filing
Statutory fee, passed through at cost
Professional Fee: ₹5,799 onwards | Govt Fee: ₹0 | Total: ₹5,799 (incl. govt fees)
Gather these documents for your New Delhi application.
The starting fee of ₹5,799 covers specialist consultation, document preparation, the government filing fee, and tracking until you receive the final certificate. Additional government fees may apply for objections, renewals, or expedited processing.
Turnaround depends on the specifics of your case. Once I-Pro Solutions scopes your requirements, I-Pro Solutions will give you a realistic timeline with milestones.
Most filings require identity proof (PAN/Aadhaar/passport), address proof, business registration documents, and (for IP filings) examples of use. An I-Pro Solutions specialist will send a tailored checklist within 24 hours of starting.
If a filing is rejected due to an error by I-Pro Solutions, I-Pro Solutions will refile at no extra cost and refund the service fee. If the rejection is due to information you provided, I-Pro Solutions will work with you to fix and refile at a discounted fee.
Section 12A/12AB is a statutory registration granted by the Income Tax Department to charitable trusts, NGOs, Section 8 companies, and societies. It exempts their surplus income and donations from Indian income tax, recognizing their non-profit philanthropic nature.
Section 12AA was the legacy tax exemption framework under which permanent registrations were granted. Under the Finance Act 2020, Section 12AA was replaced by Section 12AB to digitize and regulate non-profit exemptions. Under 12AB, registrations are now granted in two stages: Provisional (for 3 years) and Regular/Permanent (for 5 years, subject to periodic renewal).
Provisional 12AB registration is granted via Form 10A to newly formed NGOs, trusts, or Section 8 companies that have not yet commenced active charitable operations. It is valid for 3 years and allows new entities to immediately start raising tax-exempt funds.
An NGO holding provisional registration must apply for Regular 12AB registration via Form 10AB within 6 months of commencing its charitable activities, or at least 6 months before the expiry of its 3-year provisional registration, whichever is earlier.
Without Section 12A/12AB registration, your organization is treated as a taxable commercial entity. All grants, donations, tuition fees, and operational surplus will be taxed at standard corporate income tax rates (up to 30% plus applicable surcharges and cess).
No, there is zero statutory government fee charged by the Income Tax Department for submitting Form 10A or Form 10AB applications. You only pay for professional drafting, CA verification, and representation services.
Under the automated Centralized Processing Centre (CPC) workflow, Provisional 12AB registration applied via Form 10A is typically approved and issued within 10 to 15 working days from the date of electronic filing.
No, Section 12A/12AB tax exemption is available only to Public Charitable Trusts, Section 8 Companies, and Societies formed for the benefit of the general public. Private religious or family trusts where beneficiaries are specific individuals do not qualify.
To retain 100% tax exemption under Section 11, a registered NGO must spend or apply at least 85% of its total gross annual receipt towards its charitable objectives in India during the same financial year. Any unspent surplus up to 15% is allowed to be accumulated tax-free.
Yes, if an NGO cannot spend 85% of its income in a given year due to a specific long-term project (e.g., building a hospital or school), it can accumulate funds up to 5 years tax-free by filing Form 10 with the Income Tax Department before the due date of ITR filing.
Section 12AB exempts the NGO itself from paying income tax on the donations and surplus it receives. Section 80G is a separate registration that provides a tax benefit to the donors, allowing them to deduct 50% of their donation amount from their personal taxable income.
The Income Tax Department mandates an irrevocable dissolution clause stating that if the NGO is ever wound up or dissolved, its remaining net assets must be transferred only to another 12AB-registered institution with similar charitable goals, ensuring that tax-exempt funds never revert to private founders.
Form 10B (for NGOs with income over ₹5 Crores or foreign/FCRA funding) and Form 10BB (for other registered NGOs with income over ₹2.5 Lakhs) are annual statutory audit reports that must be electronically filed by an independent Chartered Accountant verifying tax compliance.
Yes, the Commissioner of Income Tax (Exemption) has the statutory power under Section 12AB(4) to cancel registration if the organization engages in activities contrary to its stated objectives, violates Section 13 by benefiting trustees, or engages in commercial trading exceeding the 20% limit.
Yes, newly formed entities can apply for both Provisional Section 12AB and Provisional Section 80G registrations simultaneously using a single unified Form 10A filing on the Income Tax portal, significantly accelerating fundraising readiness.