Section 12AB Registration for Charitable Trusts: Provisional and Regular

Registration with the Income Tax Department is what makes a charity's income exempt. Since the 2020 overhaul, registration happens in stages with fixed validity periods. This guide explains the regime under the Income-tax Act, 1961, which applies through FY 2025-26. From tax year 2026-27, the Income-tax Act, 2025 carries it into a chapter for registered non-profit organisations, with some changes in terminology and rules.

Provisional Registration

New organisations apply for provisional registration, usually before starting activities. It's generally granted for three years based on documents, without detailed examination of activities.

Regular Registration

Organisations with provisional registration must apply for regular registration within the prescribed window — generally at least six months before provisional registration expires, or within six months of starting activities, whichever is earlier. The Commissioner examines the genuineness of activities and compliance with other laws before granting it, usually for five years.

Renewal

Regular registration must be renewed at least six months before it expires. Recent changes gave longer validity to some smaller organisations; check the current rules.

Documents

• Registration documents (trust deed, society registration, or incorporation documents).
• Accounts for years of existence.
• Notes on activities, with evidence.
• Details of trustees, members or directors.

Common Rejection Reasons

• Objects that include non-charitable or business activities.
• Clauses allowing benefit to trustees or founders.
• No clear dissolution clause.
• Missing the application window.
• Weak evidence of genuine activities.

After Registration

Keep registration safe by applying income to objects, getting accounts audited, filing returns on time, and avoiding specified violations.

Getting Help

Think Filing handles 12AB applications, conversions and renewals.