Post–Finance Act 2020, all 12A and 80G registrations (even existing ones) must be renewed every five years via Form 10AB. Previously granted registrations are no longer lifetime waivers .
2. Extended Validity for Small NGOs
Organizations with income ≤ ₹5 crore (in each of preceding two years) that apply after March 31, 2025, can now receive 10-year validity instead of 5 years .
For such small trusts with current expiry in March 2026, renewal by Sept 30, 2025 grants them a 10-year term
3. Provisional Registration New NGOs
New NGOs get 3-year provisional registration under 12A/80G (Form 10A), valid from the chosen assessment year
Within that period (or before start of activities), they must apply for full registration via Form 10AB, which then grants a 5-year term
4. Flexible Cancellation Rules
Registrations now can be cancelled only on grounds of false or false/misleading information, not merely incomplete application
5. Revised “Specified Donor” Clause
Donor limits adjusted from ₹50k lifetime to:
₹1 lakh per year
Or ₹10 lakh aggregate
Relatives or related concerns of donors are no longer classified under this clause
🗓️ Timeline & Deadlines
Scenario
Form
Validity
When to Apply
New NGOs (start)
10A
3 years
1 month before AY start
Convert provisional → regular
10AB
5 years
≥ 6 months before expiry or within 6 months of starting activity
Existing 5-year registrations
10AB
5 years (or 10 if small)
At least 6 months before expiry
Small NGOs applying post-Mar 31, 2025
10AB
10 years
By Sept 30, 2025 if current expiry is Mar 31, 2026
✅ What NGOs Should Do Now
Check your status & expiry date on the Income‑Tax e‑filing portal.
If expiry < mid‑2026 and income ≤ ₹5 cr, file Form 10AB by Sept 30, 2025 to gain 10-year validity.
If you’re new, ensure to:
File Form 10A for the 3-year provisional.
File Form 10AB to convert within time.
Maintain truthful, complete info to avoid cancellation.
🔄 Why These Changes Matter
✨ Increased compliance ensures only active NGOs retain benefits.
🛡️ 10-year term eases burden for smaller NGOs.
🛑 Limited cancellation grounds protect NGOs from procedural technicalities.
📈 Donor clarity improves trust with updated thresholds.
✅ Steps to Revalidate Today
Login to Income Tax e‑filing portal
File Form 10A (if new) or Form 10AB (if renewing/converting)
These are annual return forms that companies must file with the Registrar of Companies (ROC) every year, summarizing their financial and operational details.
✅ What is Form MGT-7?
Applicable to: All companies (except OPCs & small companies)
Purpose: Filing Annual Return as per Section 92 of the Companies Act, 2013
Includes details like:
Registered office, principal business activities
Shareholding pattern
Board meetings
Director/KMP details
Debentures & share transfers
✅ What is Form MGT-7A?
Applicable to: Only for One Person Companies (OPCs) and Small Companies
Introduced: MCA introduced MGT-7A via the Companies (Management and Administration) Amendment Rules, 2021
Simplified version of MGT-7 with reduced compliance burden
📅 Due Date:
Within 60 days from the date of Annual General Meeting (AGM)
If AGM not held: within 60 days from the date on which AGM should have been held (i.e., 30th Sept, so due by 28th Nov)
📝 Filing Fees (Based on Company’s Share Capital):
Share Capital
Normal Fee (approx.)
Less than ₹1,00,000
₹200
₹1,00,000 to ₹4,99,999
₹300
₹5,00,000 to ₹24,99,999
₹400
₹25,00,000 to ₹99,99,999
₹500
₹1 crore or more
₹600
Late filing attracts additional fee of ₹100 per day.
Section 12A of the Income Tax Act, 1961 is a crucial provision for non-profit entities (like charitable trusts, societies, and NGOs) in India. It provides tax exemption on the income of these organizations, provided they are registered under Section 12A/12AB.
🔹 What is Section 12A?
Section 12A lays down conditions and procedural requirements for charitable or religious institutions to be eligible for tax exemptions under Sections 11 and 12 of the Income Tax Act.
Without registration under Section 12A (now 12AB), the income of a charitable or religious organization will be fully taxable.
🔹 Registration under Section 12A / 12AB
As per recent amendments:
Earlier, registrations were done under Section 12A.
Now, fresh and re-registrations are done under Section 12AB, introduced from April 1, 2021.
🔹 Purpose of Registration
Tax Exemption on income used for charitable or religious purposes.
Eligibility for 80G registration (which allows donors to get tax deductions).
Proof of genuine charitable activities for donors and government authorities.
🔹 Types of Registrations (as per amended law)
Type
Description
Provisional Registration
Given to newly formed trusts for 3 years (valid for 3 years from the assessment year).
Final Registration
Granted for 5 years after proper verification of activities.
Re-registration
All existing registered trusts had to re-register under Section 12AB by June 30, 2021.
🔹 Documents Required for 12A/12AB Registration
Trust Deed/By-laws
PAN Card of the organization
Registration Certificate under other acts (like Societies Act)
Details of activities since inception
Financial statements (past 3 years, if applicable)
List of trustees/board members
🔹 How to Apply?
Application is made online using Form 10A or Form 10AB on the Income Tax e-filing portal:
Form 10A for fresh/provisional registration
Form 10AB for renewal or conversion from provisional to regular
🔹 Time Limit to Apply
Within 1 month before the commencement of the previous year for which exemption is sought.
Existing institutions had to migrate to 12AB by June 30, 2021.
🔹 Summary
Section
Purpose
12A
Original section for tax exemption registration (now transitioned to 12AB)
12AB
New system of registration for charitable/religious entities
