12A, 80G and CSR-1 Registration for Trusts in Mumbai

Registration with the Charity Commissioner establishes that an organisation is a public trust or a registered society. It does nothing about income tax. That is a separate set of applications to the income tax authorities, and it is the step most trusts in Mumbai leave until a donor asks — which is the worst moment to start, because these approvals are not granted overnight.

What each one does

• Section 12A / 12AB registration is what allows the income of a charitable or religious trust or institution to be exempt from income tax, subject to the conditions in the Income-tax Act. Since 1 April 2026 this is registration under Section 332 of the Income-tax Act, 2025. Without it, the organisation’s receipts are exposed to tax in the ordinary way.
• Section 80G approval is what allows a donor to claim a deduction for a donation made to the organisation. It is the approval individual and corporate donors ask about, and its absence is a real obstacle to fundraising.
• CSR-1 registration with the Ministry of Corporate Affairs is what allows an organisation to receive corporate social responsibility funding from companies. A company cannot route CSR money to an entity that is not registered on that form.

They are cumulative rather than alternative. An organisation seeking CSR money will generally need all three, and CSR-1 in practice depends on the income tax registrations being in place first.

The order things have to happen in

This matters more than the forms themselves:

1. The organisation exists — a trust deed executed, or a memorandum and rules adopted.
2. It is registered under the Maharashtra Public Trusts Act, 1950, following the Section 18 application and Section 19 inquiry, or as a society — which in Maharashtra also means Public Trusts Act registration.
3. It has a PAN in its own name and a bank account in its own name.
4. It applies for registration under Section 12A/12AB.
5. It applies for approval under Section 80G.
6. It registers on CSR-1 if corporate funding is in view.

Applications made out of sequence tend to be rejected or kept pending for want of the earlier step, and a rejection is more troublesome to deal with than a delay.

The renewal regime

The important change in recent years is that these are no longer permanent. Registrations and approvals granted under the current regime run for a fixed period and must be renewed, and organisations holding old, open-ended certificates were required to re-apply under the new provisions. A good many Mumbai trusts are still operating on the assumption that a certificate issued in the 1990s continues to hold good. It is worth checking what the organisation actually holds, and until when, before relying on it in a funding application. Timelines and conditions in this area have been amended repeatedly, so the current position should be confirmed rather than assumed.

Where applications actually fail

Rarely on the merits of the charitable work. Usually on the file behind it:

• The register is out of date. The person signing is not a trustee according to the Public Trust Register, because the change reports were never filed.
• Accounts cannot be produced. The application asks for the organisation’s financial history and the audited accounts do not exist for the years required.
• Activities do not match the objects. The deed says one thing and the organisation has been doing another, which is a question about the deed, not just about the form.
• Object clauses that are not charitable in law — benefit confined to a narrow or closed group.
• Bank account and PAN in a trustee’s name rather than the organisation’s.

Which is why the honest sequence for most organisations is: fix the Charity Commissioner file first, then apply. Applying while the register shows the wrong trustees wastes an application.

What is needed to start

• The trust deed or memorandum and rules, with every amendment.
• The registration certificate and number, and a current register extract.
• PAN of the organisation.
• Audited accounts for the years the application requires.
• Details of activities actually carried on, with supporting material.
• Identity and address details of the trustees or committee members.
• Any existing registration or approval certificates, including expired ones.

Related

Organisations pursuing grant funding will usually also need NGO DARPAN registration with NITI Aayog. Ongoing obligations under the Public Trusts Act continue independently of anything done under the Income-tax Act — see public trust compliance.

What the Income-tax Act, 2025 changed

This page was written around Sections 12A and 80G of the Income-tax Act, 1961, which is how almost everyone still refers to these registrations — and correctly so for income earned up to 31 March 2026. But the framework itself has moved, and trustees should know where it has moved to.

The Income-tax Act, 2025 came into force on 1 April 2026. It gathers the provisions for charitable and religious organisations, which were previously scattered across the 1961 Act, into a single consolidated chapter, and deals with such bodies under one label: the registered non-profit organisation.

Three practical consequences:

• Existing registrations continue. A trust already registered under Section 12A, 12AA or 12AB, or approved under Section 80G, does not have to re-register because the new Act commenced. Transitional provisions treat those registrations as continuing until they expire, and the organisation as a registered non-profit under the new framework.
• Fixed periods still expire. Continuity is not permanence. A registration or approval granted for a fixed term still has to be renewed before that term ends, and a lapse interrupts both the trust’s own position and its donors’ deductions.
• Two regimes run side by side for one year. Income earned in 2025–26 is governed by the 1961 Act, so filings made during 2026 for that year use the old provisions and forms, while income earned from 1 April 2026 falls under the new Act. The transition year is exactly where errors are made.

What has not changed is the part that most often goes wrong, and it has nothing to do with which Act applies: the application asks who the trustees are and what the organisation did with its income, and those answers have to match the Charity Commissioner’s register and the audited accounts. A trust whose change reports are years behind will fail on that regardless of the statute. The compliance calendar sets both tracks out together.

Position as at September 2026. The position under a new Act develops as rules, forms and clarifications are issued, and should be confirmed for the year in question.

Common questions

Do we need to re-register under the Income-tax Act 2025?

Not because the new Act commenced. Organisations already registered under Section 12A, 12AA or 12AB, or approved under Section 80G, of the 1961 Act are treated as registered non-profit organisations under the new framework, and their registrations continue until they expire. Registrations granted for a fixed period must still be renewed before that period ends.

What is the difference between 12A and 80G?

Section 12A registration is what allows the organisation’s own income to be exempt, subject to conditions. Section 80G approval is what allows a donor to claim a deduction for a donation. They serve different people and are applied for separately — an organisation can hold one without the other.

What is CSR-1 and do we need it?

CSR-1 is registration with the Ministry of Corporate Affairs that allows an organisation to receive corporate social responsibility funding. A company cannot route CSR money to an entity that is not registered on that form. You need it only if corporate CSR funding is in view, and in practice it depends on the income tax registrations being in place first.

In what order should these applications be made?

The organisation must exist and be registered with the Charity Commissioner first, with PAN and a bank account in its own name. Then Section 12A registration, then 80G approval, then CSR-1 if corporate funding is in view. Applications made out of sequence tend to be rejected or kept pending, and a rejection is harder to deal with than a delay.

Why do 12A and 80G applications get rejected?

Rarely because of the charitable work. Usually because the person signing is not a trustee according to the Public Trust Register, because audited accounts cannot be produced for the years required, because the activities do not match the objects in the deed, or because the object clause confines the benefit to a narrow group and so is not charitable in law.

How long does registration take?

It varies, and it is not quick. The practical constraint is usually not the department but the organisation’s own file — a trust whose register entries and accounts are current is in a very different position from one that has to reconstruct ten years of history before it can apply.

Discussing a matter

Consultations are at chambers at 704 Classic Building, Gate No. 8, Malwani MHADA, Malad (West), Mumbai 400095, by appointment. Telephone or send a message on WhatsApp to +91 99301 50560, or use the contact page.

This page describes procedure in general terms. It is not legal advice, and what applies in a particular matter depends on its own facts and on the law as it stands at the time.

See also: Renewing 12A and 80G under the Income-tax Act, 2025 (Form 105, validity periods and documents).

See also: The Trust & NGO Desk: everything for trusts and NGOs in one place.

See also: CSR-1 registration step by step.

Related guides

• Trust ITR-7 for AY 2026-27: Due Dates and Form 10B/10BB
• The Income-tax Act 2025 and Your Trust’s 12A and 80G
• NGO DARPAN vs 12AB, 80G, FCRA and CSR-1: What Each Registration Does

This page describes general procedure and is published for information only, in keeping with Rule 36 of the Bar Council of India Rules. It is not legal advice and does not solicit work. What applies to a particular matter depends on its own facts.