Two registrations every NGO should know
For NGOs — whether trusts, societies or Section 8 companies — two income tax registrations are especially important: 12A and 80G. Together they make your organisation tax-efficient and more attractive to donors. Many NGOs pursue both early.
What 12A registration does
12A registration gives your NGO exemption from income tax on its surplus, provided the income is applied to its charitable objectives. Without it, the organisation's income could be taxed like any other entity. It is foundational for a genuine non-profit.
What 80G registration does
80G registration benefits your donors, not the NGO directly. With 80G, donors can claim a deduction on their donations to your organisation, which makes giving more attractive. For NGOs that rely on donations, 80G can meaningfully increase fundraising.
Why pursue both
- 12A — tax exemption for the NGO's income
- 80G — tax deduction for your donors
- Together — a credible, tax-efficient, donor-friendly organisation
The broad process
Both registrations involve applying to the income tax authorities with your governing documents, registration details and activity information. In recent years these registrations have become time-bound and require renewal, so staying on top of validity is important.
How Aidwish helps
Aidwish helps NGOs with Section 8 / trust / society setup and with 12A and 80G registrations and renewals — so your organisation is compliant, tax-efficient and donor-ready.