🔍 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.