The Income Tax Act, 2025 is effective from 1st April 2026. It replaces the Income Tax Act, 1961, and Old 12A & 80G Registration are replaced with Sections 332 & Section 354 of Income Tax 2025. and today we will see framework of 12A & 80G Registration Under Income Tax Act 2025.

All entities previously covered as charitable trusts, institutions, or legal obligations under the 1961 Act are now uniformly called Registered Non-Profit Organisations (RNPO).

All RNPO provisions are consolidated into Chapter XVII-B (Sections 332–355) — a single self-contained code. Under Section 334(2), this chapter overrides all other provisions of the 2025 Act, except Sections 96–98.

Charitable Purpose (Section 2(23)) remains unchanged from Section 2(15) of the 1961 Act: relief of the poor, education, yoga, medical relief, preservation of environment, preservation of monuments, and advancement of any other object of general public utility.

Table of Contents

Section 332: New 12A registration under Income Tax Act 2025

Who Can Apply?

As per New 12A registration rules, Section 332(1) lists eligible entities:

Public trust
Society registered under the Societies Registration Act, 1860 or any applicable law
Section 8 company (Companies Act, 2013) or Section 25 company (Companies Act, 1956)
University established by law, or affiliated/recognised educational institution
Institution financed wholly or partly by the Government or a local authority
Entities in Schedule III and Schedule VII (PMCARES Fund, Clean Ganga Fund, CM Relief Fund, government-financed hospitals, educational institutions, etc.)
Any other person notified by the Board

Eligibility Conditions for 12A registration under Income Tax Act 2025 — Section 332(2)

As per New 12A registration rules, Both conditions must be met:

Condition (a): Constituted, registered, or incorporated in India for one or more charitable purposes under Section 2(23), or for public religious purposes.

Condition (b): Properties held for the benefit of the general public under an irrevocable trust — wholly for charitable or religious purposes in India. (Entities constituted before commencement of the 1961 Act may qualify partly.)

The explicit mention of “irrevocable trust” is new in the 2025 Act. Earlier, this existed only through judicial interpretation.

Section 355(p) clarifies: “wholly for charitable or religious purposes” includes wholly charitable, wholly religious, or wholly both — resolving all ambiguity on mixed-purpose trusts.

Registration Timeline — Section 332(3)

Sl. No.	Case	Application Deadline	Order Timeline	Validity
1	Activities not commenced; never registered before	Any time during the tax year	1 month from end of application month	3 tax years (Provisional)
2	Activities commenced; never registered before	Any time during the tax year	6 months from end of application quarter	5 tax years
3	Holds provisional registration; activities commenced	Within 6 months of commencement	6 months from end of application quarter	5 tax years
4	Provisional registration expiring; activities not commenced	At least 6 months before expiry	6 months from end of application quarter	5 tax years following application year
5	Existing registration due to expire	At least 6 months before expiry	6 months from end of application quarter	5 tax years following application year
6	Registration became inoperative (Section 333 regime switch)	Any time during the tax year	6 months from end of application quarter	5 tax years from application year
7	RNPO modified objects not conforming to registration	Within 30 days of modification	6 months from end of application quarter	5 tax years from application year

Small Trust Benefit — Section 332(5)

For Sl. Nos. 3–7 applications: if the RNPO’s total income did not exceed Rs. 5 crore in each of the two preceding tax years, registration validity is 10 tax years instead of 5.

Condonation of Delay — Section 332(4)

Late applications may be condoned by the Principal Commissioner or Commissioner if there is reasonable cause. Condoned applications are treated as filed within time.

Late Filing Consequence — Section 332(6)

If no application is made within time (Sl. Nos. 3C, 4C, 5C, or 7C) and delay is not condoned, the RNPO is liable to pay tax on accreted income under Section 352.

Provisional 12A registration under Income Tax Act 2025 — Section 332(8)

As per new 12A and 80G registration rules, For Sl. No. 1 (activities not yet commenced), provisional registration shall be granted within 1 month. This is mandatory — the PCIT/CIT has no discretion to refuse. Upon commencement of activities, apply for final registration under Sl. No. 3 within 6 months.

Grant, Rejection, and Cancellation — Section 332(7)

After reviewing documents and conducting inquiries, the PCIT/CIT will either:

(a) Grant registration — if satisfied about objects, genuineness, and legal compliance.

(b) Reject and/or cancel:

Sl. Nos. 2 or 6: rejection of application only
Sl. Nos. 3, 4, 5, or 7: rejection of application AND cancellation of existing registration

Section 354: 80G registration under Income Tax Act 2025

Purpose

As per New 80G approval rules, Section 354 governs approval for Section 133(1)(b)(ii) of the 2025 Act — the donor deduction provision (equivalent to old Section 80G). Only RNPOs registered under Section 332 (or Schedule VII Sl. No. 1 entities) can apply.

Mandatory Conditions — Section 354(1)

As per New 80G approval rules, All conditions must be satisfied:

(a) Not expressed to be for the benefit of any particular religious community or caste
(b) Established for charitable purpose; religious expenditure must not exceed 5% of total income
(c) Governing instrument contains no clause for asset transfer for non-charitable purposes
(d) Maintains regular accounts of receipts and expenditure
(e) Prepares and delivers donor statement (Form 113) to the prescribed income-tax authority
(f) Files a correction statement (Form 113 correction) for any errors in donor data
(g) Furnishes a donor certificate (Form 114) to each donor within the prescribed period

Conditions (e), (f), and (g) are approval conditions — not just compliance obligations. Persistent non-compliance can be grounds for rejection or cancellation of Section 354 approval.

Approval Timeline — Section 354(2)

Sl. No.	Case	Application Deadline	Order Timeline	Validity
1	Activities not commenced	Any time during the tax year	1 month from end of application month	3 tax years (Provisional)
2	Activities commenced	Any time during the tax year	6 months from end of application quarter	5 tax years
3	Holds provisional approval; activities commenced	Within 6 months of commencement	6 months from end of application quarter	5 tax years
4	Provisional approval expiring; activities not commenced	At least 6 months before expiry	6 months from end of application quarter	5 tax years following application year
5	Existing approval due to expire	At least 6 months before expiry	6 months from end of application quarter	5 tax years following application year

Provisional 80G registration under Income Tax Act 2025 — Section 354(4)

As per new 12A and 80G registration rules, For Sl. No. 1, the PCIT/CIT shall pass an order granting provisional approval. Donors can claim deductions during this 3-year provisional period. Donor reporting obligations (Form 113, Form 114) apply from day one.

Rejection and Cancellation — Section 354(3)

Sl. No. 2: rejection of application only
All other cases: rejection of application AND cancellation of existing approval

Provisional 12A Registration vs Final 12 Registration (Section 332 of Income Tax Act 2025)

Parameter	Provisional Registration	Final Registration
Situation	Activities not commenced (Sl. No. 1)	Activities commenced (Sl. Nos. 2–7)
Order Timeline	1 month from end of application month	6 months from end of application quarter
Validity	3 tax years	5 tax years (10 years for small trusts)
PCIT/CIT Discretion	No discretion — must grant	Full scrutiny of objects and activities
Cancellation Risk	Cannot be cancelled during provisional period	Renewal rejection also cancels existing registration
Conversion Required?	Yes — apply under Sl. No. 3 within 6 months of commencement	No
Form (IT Rules 2026)	Form 104 (application); Form 106 (order)	Form 105 (application); Form 107 (order)

Provisional 80G Registration vs Final 80G Registration (Section 354 of Income Tax Act 2025)

Parameter	Provisional Registration	Final Registration
Situation	Activities not commenced (Sl. No. 1)	Activities commenced (Sl. Nos. 2–5)
Order Timeline	1 month from end of application month	6 months from end of application quarter
Validity	3 tax years	5 tax years
Donor Deduction	Available during provisional period	Available throughout validity period
Donor Reporting	Form 113 and Form 114 mandatory	Form 113 and Form 114 mandatory
Conversion Required?	Yes — apply under Sl. No. 3 within 6 months of commencement	No
Form (IT Rules 2026)	Form 104 (application); Form 106 (order)	Form 105 (application); Form 107 (order)

New Section 332 vs Old Section12A/12AB

Parameter	Old Section 12A/12AB (ITA 1961)	New Section 332 (ITA 2025)
Entity Name	Charitable trust / institution	Registered Non-Profit Organisation (RNPO)
Location in Act	Sections 11, 12, 12A, 12AA, 12AB	Chapter XVII-B (Sections 332–355)
Overriding Effect	No explicit override	Section 334(2): overrides all provisions except Sections 96–98
Irrevocable Trust	Judicial interpretation only	Expressly stated — Section 332(2)(b)
Provisional Validity	3 years	3 tax years
Final Validity	5 years	5 tax years (10 years for small trusts — Section 332(5))
Small Trust Benefit	Not expressly stated	10-year validity if income ≤ Rs. 5 crore p.a.
Inoperative Registration	Required fresh application	Covered explicitly in Sl. No. 6
Late Filing Consequence	Tax on accreted income	Tax on accreted income — Section 352
Application Form	Form 10A / Form 10AB	Form 104 / Form 105
Order Form	No specific form	Form 106 (provisional) / Form 107 (final/cancellation)

Old Section 354 vs Old Section 80G

Parameter	Old Section 80G (ITA 1961)	New Section 354 (ITA 2025)
Deduction Provision	Section 80G	Section 133(1)(b)(ii)
Prior Registration Required	12A/12AB registration	RNPO registration under Section 332
Provisional Validity	3 years	3 tax years
Final Validity	5 years	5 tax years
Donor Statement	Form 10BD (penalty for non-filing)	Form 113 — express approval condition
Donor Certificate	Form 10BE	Form 114 — express approval condition
Correction Statement	Not expressly stated	Expressly required — Section 354(1)(f)
Religious Expenditure Cap	5% of total income	Unchanged — Section 354(1)(b)
Application Form	Form 10A / Form 10AB	Form 104 / Form 105
Order Form	No specific form	Form 106 (provisional) / Form 107 (final/cancellation)

Registration and Approval Process of 12A & 80G Registration Under Income Tax Act 2025

RNPO 12A registration under Income Tax Act 2025

Verify trust deed / MOA explicitly states irrevocable nature and objects aligned with Section 2(23).
Identify the applicable case from the Section 332(3) table (Sl. Nos. 1–7).
File Form 104 with the PCIT/CIT before the applicable deadline.
If activities not commenced: provisional registration (3 years) granted within 1 month.
Commence activities; maintain accounts and audit reports.
File Form 105 for final/regular registration within 6 months of commencement.
PCIT/CIT examines genuineness, objects, and regulatory compliance; issues Form 107.
Registration valid for 5 tax years (10 years for small trusts). Renew via Form 105 at least 6 months before expiry.

80G registration under Income Tax Act 2025

Complete RNPO registration under Section 332 first.
Confirm all Section 354(1) conditions: no community benefit, charitable establishment, no asset diversion clause, accounts maintained, donor reporting infrastructure in place.
File Form 104 (if activities not commenced) or Form 105 (if activities commenced).
PCIT/CIT examines conditions under Section 354(3); issues Form 106 or Form 107.
Set up donor system to issue Form 114 certificates and file Form 113 statements.
Renew via Form 105 at least 6 months before approval expiry.

Transition from Income Tax Act 1961 to 2025

Effective Date: 1st April 2026. All RNPO compliance from FY 2026-27 must follow the 2025 Act.

Existing Registrations Protected: NGOs holding valid registrations under Sections 12A, 12AA, 12AB, or Section 10(23C) of the 1961 Act as of 31st March 2026 continue as RNPOs under the 2025 Act. Existing validity periods are respected.

Grandfathering — Section 332(9): Where a pre-1st April 2021 registration has expired and a fresh application is filed, the PCIT/CIT may condone delay and grant a 5-year registration from Tax Year 2021-22, if satisfied with the cause.

Case Laws Continue: No substantive policy changes were made. All existing case laws, CBDT circulars, and interpretations under Sections 11, 12, 12A, 12AA, 12AB, and 80G of the 1961 Act continue to apply under corresponding sections of the 2025 Act.

Form Numbers Under New 12A and 80G Registration Rules

Purpose	Old Form (ITA 1961)	New Form (IT Rules 2026)
Provisional registration/approval application	Form 10A	Form 104
Final/renewal registration or approval application	Form 10AB	Form 105
Order for provisional registration/approval or rejection	—	Form 106
Order for final registration/approval, rejection, or cancellation	—	Form 107
Audit report	Form 10B / Form 10BB	Form 112
Donor details statement	Form 10BD	Form 113
Tax deduction certificate to donor	Form 10BE	Form 114

Compliance Checklist for NGOs

Area	Action Required	Section
Trust Deed / MOA	Verify irrevocable nature; align objects with Section 2(23)	Section 332(2)
RNPO Registration	Check validity; file Form 105 at least 6 months before expiry	Section 332(3) Sl. No. 5
Provisional Registration	File Form 105 within 6 months of activity commencement	Section 332(3) Sl. No. 3
80G Approval	Check validity; file Form 105 at least 6 months before expiry	Section 354(2) Sl. No. 5
Donor Statement	Set up system to file Form 113 annually	Section 354(1)(e)
Donor Certificates	Issue Form 114 to each donor within prescribed period	Section 354(1)(g)
Correction Statements	File Form 113 corrections for any donor data errors	Section 354(1)(f)
Audit Report	File Form 112 annually	Section 347
Object Modifications	File Form 104/105 within 30 days of any object change	Section 332(3) Sl. No. 7
Small Trust Income Check	Verify income ≤ Rs. 5 crore to claim 10-year validity	Section 332(5)
Religious Expenditure	Ensure ≤ 5% of total income on religious activities	Section 354(1)(b)
Annual Return	File in prescribed form	Sections 347–350

Frequently Asked Questions (FAQs)

If an NGO holds valid 12AB registration as of 31st March 2026, does it need to re-register under Section 332 immediately?

No. Existing valid registrations continue until their stated expiry. File Form 105 at least 6 months before that expiry — subsequent renewals follow the Section 332 framework.

Can an NGO issue 80G receipts during its provisional approval period under Section 354?

Yes. Provisional approval is valid for donor deductions under Section 133(1)(b)(ii). Donor reporting via Form 113 and Form 114 is mandatory even during the provisional period.

If the PCIT rejects an NGO’s renewal application under Section 332, is there any remedy?

The PCIT/CIT must provide a reasonable opportunity of hearing before rejecting. If rejected, the NGO can appeal before the ITAT. However, the registration may be treated as cancelled during appeal pendency — creating operational risk. Filing renewal on time is the only reliable protection.

Does the ‘irrevocable trust’ requirement mean existing NGOs must amend their governing documents?

Not necessarily. Most properly drafted trust deeds and MoAs are already consistent with irrevocability. However, have them reviewed by a CA or legal advisor. Any express revocability clause is disqualifying.

If an NGO’s income crosses Rs. 5 crore in one year, does it lose the 10-year validity?

The Section 332(5) benefit requires income ≤ Rs. 5 crore in each of the two preceding tax years. If income exceeded this in either year, the 10-year validity does not apply — standard 5-year validity governs that renewal.

Is a separate Section 354 application required after transitioning from old 80G?

No, as per new 12A and 80G registration rules Existing valid 80G approvals continue until expiry. File Form 105 for renewal at least 6 months before expiry. Ensure Form 113 and Form 114 compliance from FY 2026-27 onwards.

What happens to donor deduction claims if Section 354 approval is cancelled mid-year?

Donations made before the cancellation date remain eligible. Donations made after cancellation are not. Notify donors immediately upon cancellation to avoid incorrect deduction claims.

Can accreted income tax under Section 352 be levied for inadvertent late filing?

Yes. The PCIT/CIT must be satisfied with “reasonable cause” for condonation — inadvertence alone is insufficient. Maintain a compliance calendar with renewal deadline alerts to avoid this risk.

Can Schedule VII institutions apply for Section 354 approval without prior Section 332 registration?

Yes as per new 12A and 80G registration rules — entities listed in Schedule VII Table Sl. No. 1 may apply for Section 354 approval directly. All other entities (public trusts, societies, Section 8 companies) must first obtain RNPO registration under Section 332.

Does switching regimes under Section 333 cancel the Section 332 registration?

No — it makes the registration inoperative, not cancelled. To return to the RNPO framework, apply under Sl. No. 6 of Section 332(3). A fresh 5-year registration is granted from the application year. Reinstatement is not automatic.

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12A & 80G Registration Under Income Tax Act 2025 – Complete Guide 2026