The Income Tax Act, 1961 stands replaced by the Income Tax Act, 2025, effective 1st April 2026. For every charitable trust, NGO, or non-profit institution, one question is now critical: how do you get permanent 12A registration under the new law — and what exactly does it mean?

In common practice, permanent 12A registration refers to the regular, full-term registration (5 or 10 years) that follows provisional registration. It’s the registration most trusts are chasing once their provisional period is over. Under the new Act, this is governed by Section 332 — the direct replacement of Section 12AB of the old law.

Table of Contents

Old 12A vs New Section 332: What Changed?

Under the Income Tax Act, 2025, the term “charitable trust” or “institution” no longer appears in the registration framework. These entities are now collectively called Registered Non-Profit Organisations (RNPOs), and all provisions — registration, income, compliance, violations — are consolidated into a single chapter: Chapter XVII-B (Sections 332–355).

What stayed the same: The definition of Charitable Purpose is unchanged. Now under Section 2(23) (previously Section 2(15)), it includes relief of the poor, education, yoga, medical relief, environmental preservation, preservation of monuments, and advancement of any other object of general public utility (GPU).

Who Is Eligible for Permanent 12A Registration Under the New Act?

Section 332(1) lists entities eligible to apply for RNPO registration — the new permanent 12A registration equivalent:

Public trust
Society registered under the Societies Registration Act, 1860
Section 8 company under the Companies Act, 2013
University established by law, or educational institution affiliated with or recognised by the Government
Institution financed wholly or partly by the Government or a local authority
Entities listed in Schedule III and Schedule VII (equivalent to old Sections 10(23C), 10(46), 10(46A))
Any other person notified by CBDT

Two mandatory eligibility conditions under Section 332(2):

The entity must be constituted or incorporated in India for one or more charitable or religious purposes as defined in Section 2(23)
Properties must be held for the benefit of the general public under an irrevocable trust — wholly or partly for charitable/religious purposes in India

The explicit requirement of “irrevocable trust” is a new addition in the 2025 Act not present in the 1961 Act.

Provisional vs Permanent 12A Registration: The Key Distinction

This is where most trust managers need clarity.

Provisional Registration is granted when activities have not yet commenced (Sl. No. 1 of Section 332(3) table). It is valid for 3 tax years and is designed to give a new trust time to establish its activities. The order is passed within 1 month from the end of the application month.

Permanent 12A Registration (regular/full registration) is the next step — valid for 5 tax years, or 10 tax years in certain cases (explained below). This is what trusts must obtain:

After provisional registration and once activities have commenced (Sl. No. 3)
When an active trust has never been registered before (Sl. No. 2)
As renewal before the current registration expires (Sl. No. 5)

The order for permanent 12A registration is passed within 6 months from the end of the quarter in which the application is made.

Under the new Act (Form numbers per IT Rules 2026):

Provisional registration → Form 104 (previously Form 10A)
Permanent / regular registration → Form 105 (previously Form 10AB)
Order granting or rejecting registration → Form 107

The Section 332(3) Table: All 7 Registration Scenarios

The 2025 Act presents the permanent 12A registration framework in a clear tabular format, replacing the dense provisos of old Section 12A(1)(ac). Here are all 7 scenarios:

Sl. No.	Case	Time Limit to Apply	Validity
1	Activities not commenced, no prior registration	Any time during the tax year	3 years (Provisional)
2	Activities commenced, no prior registration	Any time during the tax year	5 years
3	Provisional registration held, activities commenced	Within 6 months of commencement	5 years
4	Provisional registration expiring, activities not commenced	At least 6 months before expiry	5 years
5	Registration due to expire	At least 6 months before expiry	5 years
6	Registration inoperative due to regime switch (Section 333)	Any time during the tax year	5 years
7	RNPO modified its objects not conforming to conditions	Within 30 days of modification	5 years

For Sl. No. 3 to 7: if total income (without Chapter XVII-B benefits) did not exceed ₹5 crore in each of the two preceding tax years, the permanent 12A registration validity extends to 10 years.

How to Get Permanent 12A Registration: Step-by-Step

Step 1 — Check your current status Determine which row of the Section 332(3) table applies to you. Most trusts converting from provisional to permanent fall under Sl. No. 3.

Step 2 — File Form 105 File the application in Form 105 within 6 months of commencement of activities (for Sl. No. 3). For renewal, file at least 6 months before expiry of existing registration.

Step 3 — Commissioner’s inquiry The Principal Commissioner or Commissioner may call for documents, information, or conduct inquiries to verify genuineness of activities and compliance with applicable laws.

Step 4 — Order is passed If satisfied: permanent 12A registration granted in Form 107, valid for 5 or 10 years. If not satisfied: application rejected (and registration cancelled for Sl. No. 3, 4, 5, 7 cases) after providing a reasonable hearing opportunity. A copy of the order is sent to both the applicant and the Assessing Officer.

Step 5 — Renewal cycle Apply for renewal at least 6 months before expiry using Form 105 again. Delay without reasonable cause and non-condonation leads to tax on accreted income under Section 352.

10-Year Permanent 12A Registration: Who Qualifies?

This is the most beneficial aspect of permanent 12A registration under the new Act. Trusts with income under ₹5 crore in each of the two preceding years (Sl. No. 3–7) get 10-year permanent registration, reducing the compliance burden of frequent renewals. This provision existed in the 1961 Act under certain conditions and continues in a more structured form under the 2025 Act.

What Happens to Existing 12AB / 12A Registrations?

No immediate re-registration is required. Under Section 355 of the Income Tax Act, 2025:

“Registration” explicitly covers registrations granted under Sections 12A, 12AA, 12AB, and Section 10(23C) of the 1961 Act
Any entity with a valid, uncancelled registration under those provisions continues as an RNPO from 1st April 2026
Old registration is valid until its original expiry date, after which Form 105 must be filed under Section 332 for renewal

The transition is seamless. No trust loses its permanent 12A registration or its tax exemption benefits simply because the law changed.

Key Tax Rules for Permanently Registered Trusts (RNPOs)

The 85% Application Rule

A permanently registered RNPO pays zero tax on regular income if it applies 85% or more of regular income for charitable/religious purposes (or accumulates under Section 342). If applied income falls short of 85%, the gap is taxable.

Deemed Application (Section 341(5))

If income was not received and hence could not be applied, the RNPO can elect deemed application — now exercisable up to the ITR due date (a relaxation from the earlier two-month-prior deadline under the 1961 Act).

Specified Income — Taxed @ 30% (Section 337)

Certain receipts are taxed at 30% flat regardless of permanent 12A registration status:

Anonymous donations exceeding ₹1 lakh or 5% of total donations (whichever is higher)
Income applied for benefit of related persons
Investments made in violation of Section 350
Income applied outside India without CBDT approval

Corpus Donations (Section 339)

Corpus donations — received with a specific direction to form part of the corpus and invested in permitted modes under Section 350 — are excluded from regular income.

Compliance: What Registered Trusts Must Do

Requirement	Section	Form / Deadline
Maintain books of account	Section 347	If income exceeds tax-free threshold
Get accounts audited	Section 348	Form 112 (old Form 10B/10BB)
File return of income	Section 349	By 31st October
File donor details	—	Form 113 (old Form 10BD)
Deemed application election	Section 341(5)	By ITR due date
Accumulation declaration	Section 342	By ITR due date

Non-compliance with audit or ITR requirements under a permanent 12A registration strips the RNPO of its exemption for that year — regular income becomes fully taxable under Section 353.

Commercial Activity Rules for RNPOs

Section 345: Any commercial activity must be incidental to charitable objectives, with separate books maintained
Section 346: Trusts pursuing GPU objects can carry out commercial activity up to 20% of total receipts, with separate accounts
Violation of Section 346 is itself a compliance failure that triggers full taxation under Section 353

Why Permanent 12A Registration Under the New Act Is More Taxpayer-Friendly

All provisions in one chapter — no cross-referencing across the Act
Tabular format replaces complex provisos
10-year permanent registration for smaller trusts (income ≤ ₹5 crore)
Seamless transition for existing 12AB / 12A registered trusts
Deemed application deadline extended to ITR due date
CBDT noted over 2.50 lakh trusts file ITRs annually — simplified compliance was overdue

Frequently Asked Questions (FAQs)

After getting provisional registration, when exactly must I apply for permanent 12A registration?

Within 6 months from commencement of activities (Sl. No. 3, Section 332(3)). Missing this deadline without condonation triggers tax on accreted income.

Is permanent 12A registration under the new Act different from Section 12AB?

In substance, no. Section 332 is the new Section 12AB. The permanent registration principle — a full-term regular registration after provisional — continues identically.

Our trust income is ₹4 crore annually. Do we get 10-year permanent registration?

Yes, if income was below ₹5 crore in each of the two preceding tax years (without Chapter XVII-B exemptions), your permanent 12A registration under Sl. No. 3–7 will be valid for 10 years.

Can permanent 12A registration be cancelled mid-term?

Yes. The Commissioner can cancel registration if activities are found non-genuine or objects are modified without intimation, after giving the trust an opportunity to be heard.

Does permanent 12A registration cover both charitable and religious purposes simultaneously?

Yes. Section 355(p) clarifies that “wholly for charitable or religious purposes” includes trusts that operate wholly for both charitable and religious purposes — removing the earlier ambiguity.

We modified our trust’s objects last month. Do we need fresh permanent 12A registration?

Yes. You must apply within 30 days of such modification (Sl. No. 7, Section 332(3)) or risk losing your registration and facing accreted income tax.

What is accreted income tax — the penalty for missing permanent 12A registration deadlines?

Section 352 taxes the net asset value (assets minus liabilities) of the trust at the maximum marginal rate — effectively treating accumulated corpus as income. It is a severe penalty.

Our trust is registered under Section 10(23C). Is permanent 12A registration still needed?

Under the 2025 Act, Section 10(23C) entities are also treated as RNPOs with valid registration (per Section 355(m)). Renewal must eventually happen under Section 332.

Is there a separate process for 80G approval along with permanent 12A registration?

Yes. 80G approval is now under Section 354 (previously 80G). It is a separate application — Form 105 is for Section 332 (12A equivalent) and donor certificates are in Form 114 (old Form 10BE).

If our registration became inoperative after switching to the Section 333 regime, can we restore it?

Yes. File a fresh application under Sl. No. 6 of Section 332(3) at any time during the tax year from which you want the registration restored. Permanent 12A registration will be valid for 5 years from that year.

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Permanent 12A Registration Under Income Tax Act 2025