Difference Between 12A and 80G Registration in India for NGOs

Introduction

Sections 12A and 80G are commonly used terms for tax benefits available to eligible non-profit organizations in India. Although both relate to charitable activities, they benefit different persons. The main difference between 12A and 80G is that 12A-related registration helps an organization claim exemption on eligible income, while 80G-related approval allows eligible donors to claim a deduction for qualifying donations.

What Is Section 12A?

12A registration is the commonly used name for income-tax registration obtained by an eligible charitable or religious organization. Under the Income-tax Act, 2025, applicable from 1 April 2026, the corresponding registration is covered under Section 332.

The registration allows an organization to claim exemption on qualifying income applied towards its approved charitable or religious objects. The organization must use its income for permitted purposes, maintain proper books, file the applicable return, and submit an audit report where required.

The difference between 12A and 80G becomes clear here because 12A-related registration concerns the organization’s own income and tax liability.

Who Can Apply for 12A Registration?

Public charitable trusts, registered societies, Section 8 companies, charitable or religious institutions, eligible educational or medical institutions and other qualifying non-profit organizations may apply, subject to their objects and activities.

The organization must first be legally formed under the applicable law. 12A registration does not create a trust, society or Section 8 company. It becomes important when the organization wants to claim income-tax exemption.

Benefits of 12A Registration

• Tax exemption: An eligible organization may claim exemption on qualifying income when it applies or accumulates the income according to law.
• Better use of funds: More resources can be used for charitable, educational, medical, religious or social activities.
• Improved credibility: A valid registration may strengthen confidence among donors and grant-making organizations.
• Compliance support: The registration can help establish the organization’s tax compliance history.

12A registration does not permit an organization to receive foreign contributions. Foreign funding requires the applicable FCRA registration or prior permission.

What Is Section 80G?

80G approval allows eligible donors to claim a deduction for qualifying monetary donations made to an approved organization. Under the Income-tax Act, 2025, the corresponding approval is covered under Section 354, while the donor deduction is linked with Section 133(1)(b)(ii).

The primary difference between 12A and 80G is therefore the beneficiary. The organization receives the direct tax benefit under 12A-related registration, while the donor receives the deduction under 80G-related approval.

Not every donation qualifies automatically. Eligibility depends on the approved recipient, payment mode, applicable limit, donor’s tax regime and other conditions.

Donations in kind are not eligible. Donors should verify the organization’s approval and retain the prescribed donation certificate.

Who Can Apply for 80G Approval?

Public charitable trusts, registered societies carrying out charitable activities, Section 8 companies, eligible educational or medical institutions and other qualifying non-profit organizations may apply.

Benefits of 80G Approval

• Tax deduction for donors: Eligible donors may reduce their taxable income by claiming the applicable deduction.
• Better fundraising potential: Valid approval may attract donors because qualifying contributions can provide a tax benefit.
• Greater donor confidence: Approval, reporting and certification improve transparency.
• Proper donation records: Approved organizations must maintain donor details, report eligible donations and issue the prescribed certificate. Form 10BD and Form 10BE under the earlier framework have been renumbered as Form 113 and Form 114 from 1 April 2026.

This reporting requirement further explains the difference between 12A and 80G, as 80G focuses on donations and donor documentation.

Key Difference Between 12A and 80G

The table clearly shows the difference between 12A and 80G. The registrations complement each other but are not interchangeable.

Is 12A Registration Required Before 80G?

It is not always necessary to complete one application before starting the other. An eligible organization that has not commenced activities may use Form 104 to apply for provisional registration under Section 332, provisional approval under Section 354, or both.

An organization that has already commenced activities generally uses Form 105 for regular registration or approval. Form 104 and Form 105 replace the earlier Form 10A and Form 10AB. The official mapping guide confirms that forms under the Income-tax Act, 2025 were renumbered from 1 April 2026.

Many organizations obtain both because the difference between 12A and 80G means that one supports exemption for organizational income while the other supports deductions for donors.

Get Expert Support for 12A and 80G Registration

Ebizfiling helps charitable trusts, registered societies and Section 8 companies complete their 12A and 80G registration with proper documentation and filing support.

• Eligibility check for 12A and 80G registration
• Review of trust deed, MOA and supporting documents
• Assistance with Form 104 and Form 105 filing
• Support for application submission and departmental queries

Start your 12A and 80G registration with Ebizfiling today.

Conclusion

The central difference between 12A and 80G lies in who receives the tax benefit. 12A-related registration helps an eligible organization claim exemption on qualifying income, whereas 80G-related approval allows eligible donors to claim a deduction on qualifying donations. Both registrations can support the long-term sustainability of a non-profit organization. However, neither replaces legal formation, FCRA approval or ongoing income-tax compliance.

Suggested Reads:

How to Download 12A and 80G Certificate?

Section 12AB and 80G Registration

Exemptions under Section 80G and 12A / 12AA

Documents Required for Section 12A and 80G Registration

Frequently Asked Questions