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Leading an NGO is no longer only about motive and consequence – it is also about legal form, transparency and tax observance. Understanding 12A, 12AA and 12AB registration under the Income Tax Act is one of the most important factors pertaining to NGO compliance.
For many trustees, founders and NGO professionals, the question remains:
- What is 12A registration in NGOs?
- What is 12AA registration and is it still relevant?
- What is 12AB Registration for NGOs and why do I need to register by 2026?
We at Garudamudra are assisting NGOs all around India to overcome these changes gracefully. This guide (updated for 2026) tells you what 12A, 12AA and 12AB registration is, who it is open to, how to apply and renewing it – all without using legal terms.
Why NGOs Must Register for Taxes
Before we get into definitions, let’s make sure you know why registering for taxes as an NGO is actually a thing.
Without proper registration:
- NGO income becomes taxable
- Donations lose credibility
- Grants and CSR funding are hard
- Notices from tax authorities increase
Tax registrations under 12A/12AA/12AB allow income tax exemption for NGOs under 12AB, ensuring that genuine charitable work is not taxed like a business.
What is 12A Registration for NGO?
12A registration was the first provision of Income Tax Act under which a charitable organization can claim exemption from paying income tax.
Key points:
- Introduced decades ago
- Granted permanent tax exemption
- No expiry or renewal initially
- Trusts, societies and Section 8 companies whose income is not taxable.
But the government reformed that system because of overuse and absence of supervision.
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Is 12A Registration Still Applicable?
In 2026, people often ask: Does the 12A registration make any sense now?
The answer is NO.
- No new 12A registrations are created
- Old 12A registrations were migrated
- 12AB registration status for NGOs as per new regulations
While 12A’s approach was a start, it now is no longer operable under existing law.
What Is 12AA Registration and Is It Still Valid?
12AA substituted for 12A An application to be made in form no.57 A more detailed approval method was introduced under 12AA where:
- Income Tax Department examined NGO activities
- Registration was granted after scrutiny
- Approval was still largely permanent
Current status of 12AA:
- New 12AA registrations are discontinued
- All the previous 12AA approvals were temporary
- Conversion must be to 12AB compulsory
If they don’t change, it means that its tax exempt status is revoked.
Also Read About Section 8 NGO Registration
What Is 12AB for NGOs?
What is the 12AB registration for NGOs?
12AB is the current and only valid NGO tax exemption registration in India for as of 2026.
It was introduced to:
- Increase transparency
- Enforce periodic compliance
- Prevent misuse of charitable status
Under 12AB:
- Registration is time-bound
- NGOs must renew periodically
- Activity-based verification is mandatory
This registration is the one which ultimately pertains to income tax exemption of NGOs under 12AB.
Difference Between 12A 12AA and 12AB Registration
Understanding the difference between 12A 12AA and 12AB registration is essential for compliance clarity.
|
Aspect |
12A | 12AA | 12AB |
|
Status in 2026 |
Not applicable | Not applicable |
Active |
|
Nature |
Permanent | Permanent |
Time-bound |
|
Renewal |
No | No |
Yes |
|
Scrutiny |
Minimal | Moderate |
Strict |
| Compliance focus | Low | Medium |
High |
12AB is the only valid registration for NGOs in 2026.
What Kind of Registration Does an NGO Need in 2026?
If you’re trying to grapple with which registration is mandatory for NGOs in 2026, it’s simple:
✔️ 12AB registration is mandatory
Whether your NGO is:
- Newly formed
- Previously registered under 12A
- Registered under 12AA
You need to have/generate/migrate to 12AB registration for claiming tax exemption.
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Eligibility for 12AB Registration
Clearing the concept of 12AB registration avoids unwanted rejection.
An NGO is eligible if:
- It is a Trust, Society, or Section 8 Company
- It operates for charitable purposes
- It is non-profit in nature
- It maintains proper books of accounts
- It does not distribute profits
Most NGOs involved in political and exclusively religious activities are ineligible.
12AB Registration Process for NGOs
How to register under 12AB for NGOs It is a 100% online process and need precaution for handling the same.
Step-by-step process:
- Login on Income Tax e-filing portal
- File Form 10A or 10AB
- Upload required documents
- Respond to clarification (if issued)
- Receive approval order electronically
It is an activity of the Income Tax Department and time taken would depend on scrutiny.
Also Read About 12A and 80G Registration
Documents Required for 12AB Registration
Incomplete documentation is a top reason people are rejected. Here are the documents needed for 12AB registration:
- NGO registration certificate
- Trust deed / MOA / AOA
- PAN of NGO
- Financial statements
- Activity reports
- Details of trustees/directors
- Previous 12A/12AA certificate (if applicable)
Professional proofreading is strongly recommended before submitting.
How to Convert 12AA to 12AB
Many NGOs ask how to convert 12AA to 12AB.
Conversion involves:
- Strategically filing Form 10A in time
- Uploading old 12AA approval
- Submitting updated compliance records
If not converted, the tax exemption is automatically lapsed.
Validity of 12AB Registration
It is important to note the seriousness of 12AB registration.
- Provisional registration: 3 years
- Regular registration: 5 years
It must be renewed post expiration to retain tax advantage.
12AB Registration Renewal Process
The 12AB renewal must be applied prior to its expiration.
Steps include:
- Filing Form 10AB
- Submitting updated compliance documents
- Responding to any departmental queries
Failure to reapply can leave you temporarily exempt. Contact Us Today
Compliance Requirements After 12AB Registration
If approved, post 12AB registration compliance needs to be continuous.
These include:
- Filing income tax returns
- Maintaining audited accounts
- Expending monies for not more than charity?
- Avoiding prohibited transactions
Non-compliance can lead to cancellation.
Income Tax Exemption to NGOs under 12AB
NGOs are exempted from income tax under section 12AB of the Act if they have a valid registration.
- Donations received
- Grants and funding
- Program-related income
Funds are used specifically for purposes other than charitable objects can be identified.
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NGO Tax Exemption Rules 2026 – What is New?
Under NGO tax exemption policy 2026:
- Compliance is digital and traceable
- Registrations are time-bound
- Scrutiny is stricter
- Renewals are mandatory
These are intended to prevent the abuse while safeguarding legitimate NGOs.
Why to Choose Garudamudra for 12AB Registration?
NGO legal compliance is our specialty at Garudamudra, and not filing of generic documents.
Our strengths:
- End-to-end handling
- Error-free documentation
- Conversion + renewal expertise
- Practical compliance guidance
- Transparent pricing
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Do not take chances of rejection and loss of the exemption. Get the 12AB registration/conversion done and dusted by professionals at Garudamudra.
Sec 12A, 12AA & 12AB Registration (2026) FAQs
Q: What is 12A Registration for NGOs?
It was the original tax exemption registration — now expired.
Q: What is 12AA registration? And whether it still holds valid?
It’s been around but needs to be in 12AB.
Q: What is 12AB registration for NGOs?
This is the new compulsory tax exemption registration.
Q: Which are the NGO registration in 2026?
Only 12AB registration is valid.
Q: Is 12A registration still applicable?
No, it is no longer issued.
Q: How long is 12AB registration Valid?
Up to 5 years.
Q: How to convert 12AA to 12AB?
By filing Form 10A online.
Q: What are the documents for 12AB registration?
Deed of trust, PAN, financials, activity reports etc.
Q: What are the compliances to be performed after 12AB registration?
Returns, audits, proper fund usage.
Q: Can 12AB registration be cancelled?
Yes, for non-compliance or misuse.
Conclusion
Not optional anymore, but mandatory to know the difference between 12A 12AA and 12AB Registration for NGOs survival & growth by 2026.
With Garudamudra the obedience is easy, organized, and relaxed.