Overview

• Legal Basis: Section 12AB of the Income Tax Act, 1961 (Section 332 of the Income Tax Act, 2025).

• Purpose: Provides tax exemption to NGOs.

• Effect: Enhances NGOs' credibility.

Eligibility Criteria

To qualify for final 12AB/332 registration, an NGO must:

• Be legally registered in India as a Trust, Society, or Section 8 Company (Foreign NGOs are not eligible for 12AB/332 registration).

• Have a track record of at least 4-5 months of charitable activities after registration (If your NGO has not started charitable activities, then it is not eligible for final 12AB/332 registration and may apply for provisional 12AB/332 registration).

• Have charitable or religious objectives only (NGOs involved in commercial activities are not eligible for 12AB/332 registration. Commercial activities are allowed to 12AB/332 registered NGOs in very limited cases).

You are not eligible for CSR Funding and Government projects without 12AB/332 registration.

Documents Required for Trusts

• Trust Deed

• Registration Certificate, if available

• PAN of NGO

• Audited Financial Statements (last 3 years)

• Activity Report

• Details of Trustees 

Documents Required for Societies

• Memorandum of Association & Rules

• Registration Certificate

• PAN of NGO

• Audited Financial Statements (last 3 years)

• Activity Report

• Details of governing council members

Documents Required for Section 8 Companies

• Memorandum of Association & Articles of Association

• Registration Certificate

• PAN of Company

• Audited Financial Statements (last 3 years)

• Activity Report

• Details of directors

Validity

Final registration under Section 12AB/332 is ordinarily valid for five years. However, if an organization migrates from provisional to final registration, or applies for renewal, and its total income does not exceed ?5 crore in each of the two relevant tax years, the registration is granted with an extended validity of ten years.

When should you apply for the final 80G/354 registration

• Your NGO has provisional 12AB/332 registration; you must apply for final 12AB/332 registration within six months of the commencement of charitable activities. 

• Your NGO has commenced charitable activities; you are ineligible for provisional 12AB/332 registration and must apply directly for final 12AB/332 registration.