12A vs 80G: The Difference, Who Is Eligible and Whether Your NGO Needs Both

Last updated 26 September 2026

What is the difference between 12A and 80G?

The difference between 12A and 80G is that 12A protects your organisation's income from tax, while 80G gives your donors a tax deduction. One helps the NGO's own tax position and the other helps it raise money, and having one does not automatically give you the other.

Say Rohit runs a registered trust in Nagpur that distributes school supplies. He assumed "the tax certificate" was a single document, so he applied for 12A and was surprised when a corporate donor said it could not treat the gift as deductible. That donor needed 80G. This mix-up is common, so it is worth reading the table carefully.

Details are as of September 2026 and rest on secondary sources, so ask your CA to confirm anything you plan to rely on. The full step-by-step is in our guide on the 12A and 80G process and timeline.

Do you need both 12A and 80G?

Most NGOs that accept donations need both, because 12A protects the organisation's income and 80G is what makes a donor's contribution deductible. You could hold only 12A, but donors then get no deduction, which makes fundraising harder.

Whether you need both depends on what you do:

• You raise funds from individuals or companies: apply for both. 80G is a strong reason for donors to give.
• You are funded by members' fees or a single sponsor who does not need a deduction: 12A alone may be enough. Ask your CA.
• You run programmes funded by foreign donors: 12A and 80G do not replace FCRA. See the FCRA registration page.

Shunya's 12A & 80G registration page covers both, and 12A and 80G are typically filed at the same time. Our guide to Section 8 company tax exemption next steps explains why the two follow incorporation.

Who is eligible for 12A and 80G registration?

Public charitable or religious trusts, societies registered under the Societies Registration Act and companies incorporated under Section 8 can apply for 12A and 80G registration. The organisation must already exist, have charitable or religious objects, keep proper books and not allow private benefit to individuals. As of September 2026, this is the general position and your CA confirms how it applies to you.

Shunya's page confirms that a Trust or Society, not only a Section 8 company, can apply, as long as your governing document clearly states your charitable objects. If you have not yet incorporated, Shunya's page says the team can help you register a Section 8 company first.

What extra conditions apply to 80G?

80G comes with stricter conditions than 12A, because it is a benefit passed to donors, so the department looks at how you use donated funds and whom you serve. These points come from a single secondary source for the new Act, so treat them as hedged.

• No benefit to a particular religious community or caste.
• Religious expenditure within a limit (reported as 5% of total income).
• No clause allowing assets to be diverted for other purposes.
• Regular accounts.
• Annual reporting of donations received, and issue of a certificate to each donor.

Once approved, your receipts should show the 80G registration number. After registration, you file a donation statement each year so donors can claim: Form 10BD and Form 10BE under the older rules, and Forms 113 and 114 reported for the new regime, due 31 May after the year. If you miss it, donors may be unable to claim even though your registration is valid. See 12A and 80G annual compliance.

What can donors actually claim under 80G?

Donors can claim either 50% or 100% of a qualifying donation, depending on your approved category, and some categories are capped at 10% of the donor's adjusted gross total income. Cash donations over Rs 2,000 do not qualify for the deduction. These limits are long-standing, but we found them in secondary sources, so confirm them before quoting them to donors.

Points worth explaining to a donor:

• Four categories exist: 100% without a qualifying limit, 50% without a limit, 100% with a limit and 50% with a limit. Which one applies to you depends on your approved category.
• Cash above Rs 2,000: no deduction, so ask donors to pay by cheque, UPI or bank transfer.
• New tax regime: donors who opt for the new regime generally cannot claim 80G. Tell donors to check with their own adviser.
• Documentation: the donor claims on the basis of what you report, so your annual donation statement matters.

This is why 80G matters for fundraising: the donor's benefit depends on their own tax situation, and some will not be able to use it at all.

Which route fits you if you are not yet eligible?

If you are not yet a registered trust, society or Section 8 company, form one first, because 12A and 80G are follow-on registrations and cannot be filed for an organisation that does not exist. The choice of entity depends on how you want to govern the organisation and what your funders expect.

• You want a company structure with ROC compliance: a Section 8 company.
• You want a simpler set-up: a trust or a society, registered under the relevant law of your state.
• You plan to run a for-profit business and give to charity: a Private Limited company or LLP is not eligible for 12A in the normal course. See Private Limited registration instead.

Once your entity is registered, come back to 12A and 80G. If you want a CA to look at your specific situation, ask on the free callback.

How can Shunya help with 12A and 80G registration?

Shunya's CA prepares Form 10A (or Form 10AB for renewals), files it on the income tax e-filing portal, handles department queries and delivers your registration certificate, with guidance on the annual Form 10BD filing. Shunya's professional fee is ₹1,999. It does not include the DSC issuer's charge, government fees or other statutory and third-party costs, which are billed separately and explained by your CA on the callback.

A practising Chartered Accountant reviews every filing. To start, request a free callback on the 12A & 80G registration page (name and phone; a CA calls within the hour) or pay the fee online. You can also call or WhatsApp +91 80809 18797. Read the documents checklist before you call.

This article is for general information only. For your specific situation, consult a practicing CA.