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What is 12A Trust Exemption ?

Starting or managing a charitable trust, NGO, society, or religious institution in India is a noble step toward doing good for the community. But along with the noble cause comes the responsibility of handling financial compliance properly. One of the most important tax benefits that every trust or NGO should apply for is the 12A registration, also called 12A Trust Exemption. If your trust is registered under 12A of the Income Tax Act, then all the income that your trust receives is exempted from income tax, provided it is used for charitable or religious purposes.

At CallmyCA, we help you register your trust under Section 12A in a smooth and professional way. Our expert CA team handles the application, documentation, and communication with the Income Tax Department so you can focus on your mission and activities while we take care of the legal part.

Getting 12A Trust Exemption is extremely important if you want to legally save tax and also apply for grants, CSR funding, or foreign donations in the future. Without 12A, even a charitable organization will be considered as a taxable entity, and the entire income or donation received may be subject to income tax, which reduces your ability to use funds for your purpose.

Once registered, your trust will enjoy tax exemption benefits for a lifetime, unless cancelled by the department. This one-time registration helps your NGO or trust grow financially, stay transparent, and build trust with donors and institutions. Whether you are running an educational trust, religious institution, social welfare organization, or health-related charity, CallmyCA makes the process of 12A Trust Exemption easy, legal, and fast.

4 EASY STEPS OF

12A Trust Exemption

Share Basic Details & Documents
01

Share Basic Details & Documents

Form Preparation by CA Team
02

Form Preparation by CA Team

Online Submission & Liaison
03

Online Submission & Liaison

Get Approval Certificate
04

Get Approval Certificate

DOCUMENTS CHECKLIST

Documents Required for 12A Trust Exemption

Trust Deed / MOA / AOA

Trust Deed / MOA / AOA

Registration Certificate - PAN Card of Trust

Registration Certificate - PAN Card of Trust

Financials of Last 3 Years

Financials of Last 3 Years

Or since inception

List of Trustees with PAN & Aadhaar

List of Trustees with PAN & Aadhaar

Bank Statement of Trust - Donor Details

Bank Statement of Trust - Donor Details

If any

12A Trust Exemption

Benefits of Getting 12A Trust Exemption

Income Tax Exemption

Your trust’s income will be fully exempted from income tax, saving lakhs annually that can be reinvested in your social initiatives.

Eligibility for 80G Registration

12A is a basic requirement before applying for 80G, which gives tax deductions to your donors and increases fundraising capacity.

Access to Government & CSR Grants

Many government schemes, CSR donors, and international agencies require your trust to have 12A for eligibility and legal recognition.

Builds Credibility

Having 12A registration gives legal credibility and transparency to your trust or NGO in the eyes of donors, public, and auditors.

Lifetime Validity (With Revalidation)

Once registered, 12A remains valid for a lifetime, subject to periodic updates or revalidation under current rules.

Helps During Bank and Legal Audits

It supports smooth banking processes and compliance checks for your trust.

Avoids Income Tax Notices

Without 12A, your trust may get notices and be liable to pay tax on income/donations received. We help avoid that.

Professional Support from Start to Finish

Our CA experts guide you through every step, prepare documents, and handle back-and-forth with the department.

Completely Online & Hassle-Free

We offer fully digital service — just upload the documents and relax while we do the paperwork.

FAQ

Frequently Asked Questions

12A Trust Exemption refers to registration under Section 12A of the Income Tax Act, which allows charitable and religious trusts or NGOs to claim full income tax exemption on their income or donations received. It ensures that your trust is not treated like a business entity for tax purposes and helps utilize maximum funds for social welfare. This is a legal and essential step for every organization working in public interest.

Any trust, society, religious institution, or NGO involved in non-profit activities like education, health, relief, or community development should apply for 12A registration. Whether you're newly formed or operating for a few years, 12A registration helps you stay compliant and enjoy tax benefits.

No, they are different but related. 12A gives tax exemption to the trust/NGO on its income, while 80G allows donors to claim tax deductions. To apply for 80G, your organization must first have 12A registration.

Yes. Even new trusts can apply for 12A registration. You don’t need to wait for years of operations. Early registration helps in long-term planning, donor confidence, and avoiding tax issues.

Typically, it takes 30–45 working days from the date of application submission, depending on the accuracy of documents and response from the tax department. At CallmyCA, we ensure a fast and timely process.

Earlier, it was permanent, but now revalidation is required under the new rules every five years. We help you track and renew your registration on time to avoid cancellation.

Technically yes, but for FCRA registration (needed for foreign donations), you must first have 12A and 80G approvals. So, it becomes an essential step.

If a trust doesn’t apply for 12A, all income or donations received will be taxed like a business, and even donors may not support it due to lack of credibility.

Both. Once approved, the department sends the certificate via email and also delivers a physical copy. We provide tracking updates regularly.

Our CA experts prepare your documents, file the application, follow up with the tax department, and get your approval without any hassle. We provide transparent, reliable, and affordable services with full support through WhatsApp, phone, or email — so you never feel lost in the process.