12A/80G Renewal & Compliance

• A lapsed 12A means all income for the lapsed period becomes taxable at the maximum marginal rate — regardless of whether the income was used for charitable purposes
• A lapsed 80G means donors cannot claim deduction — institutional donors often immediately suspend disbursements upon learning of lapsed 80G status
• FCRA renewal requires valid 12A registration — lapsed 12A jeopardises FCRA renewal
• Government grant agreements typically include a condition that the NGO must maintain valid 12A and 80G throughout the grant period
• Corporate CSR compliance requires grantees to maintain valid 80G or CSR-1 status continuously
• Gap in 12A registration history can trigger Income Tax scrutiny of the lapsed period

1. Identify expiry date: Check the exact date on the existing 12A/80G approval order
2. Initiate 6 months before expiry: Form 10AB must be filed at least 6 months before expiry — late filing risks lapse
3. Compile documents: Audited accounts for the 5-year validity period, ITR-7 acknowledgements, Form 10B audit reports, Form 10BD/10BE filings
4. Activity report: Detailed report of charitable activities, projects, and beneficiaries for the 5-year period
5. File Form 10AB: On Income Tax e-filing portal using authorised signatory DSC or Aadhaar OTP
6. Respond to queries: CIT(Exemptions) may seek clarifications on activities or financials
7. Receive renewal order: New 5-year validity certificate issued

• Existing 12A and 80G approval orders with registration numbers
• Audited accounts for all 5 years of the validity period
• ITR-7 acknowledgements for all 5 years
• Form 10B (CA audit report) for all 5 years
• Form 10BD statement of donations received (annual) and Form 10BE certificates issued
• Annual activity reports with project outcomes, beneficiary data, and impact evidence
• Updated list of trustees/directors/governing body members
• Current registration certificate and governing document

• MFiling maintains a central expiry tracker for all client 12A/80G certificates
• Renewal initiation triggered automatically 8 months before expiry
• Document checklist sent to client 7 months before expiry
• Form 10AB filed 6 months before expiry — meeting the regulatory minimum
• All query responses handled within 5 working days of receipt
• Clients notified immediately upon receipt of renewal order

Q: What happens if 12A lapses before renewal is obtained?
Income earned during the lapse period is taxable. However, if the delay was due to pending Form 10AB application (i.e., the application was filed on time but the Department has not yet issued the renewal order), the CIT(Exemptions) typically grants interim protection. If the application was filed late and the certificate lapsed, a fresh application under Form 10A (provisional) must be made — and MFiling can file this immediately.

Q: Can 12A and 80G be renewed separately?
12A and 80G are separate registrations but are typically renewed together via a single Form 10AB filing. An NGO can hold 12A without 80G or vice versa, though most charitable NGOs hold both to maximise tax benefits for the organisation and its donors.