Renewal of 12AB and 80G Registration – Understanding the Enquiry Process and Required Documents

Introduction: The Clock is Ticking – Filing Form 10AB is Only the First Step

The compliance framework for charitable trusts, societies, and Section 8 companies in India has undergone a seismic shift. The Finance Act, 2020, dismantled the long-standing system of perpetual registrations under Sections 12A and 80G of the Income-tax Act, 1961.1 We have now entered a new era of mandatory periodic renewals, fundamentally altering the relationship between non-profit organizations and the tax authorities. Every registration now comes with an expiry date, typically five years, necessitating a formal renewal application to maintain tax-exempt status.

For the vast number of organizations that successfully navigated the re-registration process in 2021, the first major deadline of this new regime is fast approaching. The registration certificates issued then are valid up to Assessment Year (AY) 2026-27, which means they expire on 31st March 2026. The law mandates that the renewal application, in Form 10AB, must be filed at least six months prior to the expiry of the current registration period. This sets a critical, non-negotiable deadline of 30th September 2025 for this entire cohort of organizations.

However, it is a grave miscalculation to view the electronic submission of Form 10AB as the finish line. In reality, it is the starting gun for a formal, statutory enquiry by the Income Tax Department. The submission of the form merely initiates a process of deep scrutiny designed to validate the organization's continued eligibility for the significant tax benefits it enjoys. This guide serves as a definitive roadmap for trustees, directors, and management to prepare for, and successfully navigate, this comprehensive departmental review.

A crucial strategic consideration arises from the mass re-registration that occurred in 2021. This event has created a future compliance bottleneck. A massive wave of renewal applications is expected to flood the offices of the Principal Commissioner/Commissioner of Income Tax (Exemptions) around the September 2025 deadline. While the statute provides a timeline of 6 months from the end of the quarter in which the application has been made as the deadline for the department to pass an order, this unprecedented surge in workload will inevitably strain departmental resources. This could lead to processing delays, more stringent scrutiny due to limited time per case, and a higher probability of queries being raised for even minor discrepancies.

Also another important point is that the Organization will have to go for 2 separate documentary verification or Scrutiny for 12AB and 80G Renewal. Note it is best to keep 2 sets of documents ready one for 12AB and one for 80G. Also incase a CA is visiting the CIT(E)/PCIT then it is best for 2 separate Power of Attorney by the Board to the CA.  With this in mind lets delve down into the enquiry process.

Section 1: The Anatomy of the Renewal Enquiry – Why Scrutiny is Non-Negotiable

The enquiry that follows the filing of Form 10AB is not a mere procedural formality. The PCIT/CIT(E) is legally mandated under Section 12AB of the Act to conduct a thorough review before granting a renewal of registration. The objective is to satisfy the department on two fundamental and non-negotiable fronts:

1. The genuineness of the activities of the trust or institution.

2. The compliance of the trust with the requirements of any other law for the time being in force which is material for the purpose of achieving its objects.

This is an active, not a passive, verification. The PCIT/CIT(E) is empowered to call for such further documents or information from the applicant as they may deem necessary to satisfy themselves about these two conditions. This process transcends a simple document check; it involves a human element. The Managing Committee Members, Trustees, or their authorized representative may be required to attend the office of the tax authority for a hearing to provide clarifications and answer questions. This underscores the critical need for the organization's leadership to be intimately familiar with every aspect of their operations, finances, and legal documentation.

The level of scrutiny is particularly intense for organizations using Form 10AB to convert a three-year provisional registration into a five-year permanent one. In these cases, it is the first time the department is examining the organization's actual activities since their commencement, and the review of the "genuineness of activities" is exceptionally detailed.

More profoundly, the nature of the enquiry signals a paradigm shift in regulatory oversight. The scope extends far beyond a simple tax audit of income and expenditure. It is, in effect, a comprehensive governance audit. The department delves into the foundational legal document of the trust (the deed or Memorandum of Association), the credentials and history of the people managing it (trustee details), and its adherence to all relevant laws, not just tax law (e.g., FCRA, Societies Registration Act, state-level public trust acts). The request for detailed trustee information, including credit and criminal history, is a clear indicator of this shift. The department is not just auditing an entity; it is conducting due diligence on its fiduciaries. Similarly, the explicit requirement to demonstrate compliance with "other material laws" means that a lapse in FCRA compliance, a failure to renew a society's registration, or operating a hospital without the necessary health department licenses could directly lead to the rejection of the income tax registration renewal. This positions the Income Tax Department as a central regulator of governance and overall legal propriety in the non-profit sector. A 12AB/80G registration is no longer just a tax certificate; it is an implicit certification of good governance and holistic compliance.

Section 2: The Ultimate Document Checklist – Your Armour for the Enquiry

Meticulous preparation is the key to navigating the renewal enquiry successfully. While the PCIT/CIT(E) may request additional specific information based on the nature of the organization, the following 18 points represent the standard and most comprehensive set of documents that an organization must compile and keep ready. Organizing these documents into logical categories can streamline the preparation process.

A. Foundational & Legal Documents (The Bedrock of Your Existence)

These documents establish the legal identity, purpose, and operational framework of the organization.

1. Self-Certified Copy of order granting approval u/s. 12AB (Form No. 10AC): This is the order received from the previous registration or re-registration or provisional registration, proving the current 12AB status.

2. Self-certified copy of order granting registration u/s.80G (Form No. 10AC): Similar to the 80G order, this document confirms the existing 80G registration that is now due for renewal.

3. Self-Certified copy of the instrument creating the Trust or establishing the institution: This is the Trust Deed for a trust, or the Memorandum of Association (MOA) and Articles of Association (AOA) for a society or Section 8 company. It is the single most critical document, as the department will scrutinize its clauses against the stringent requirements of the Act.

4. Whether Mandatory clauses are included: This is not a document to be submitted but a critical self-check. The department will verify if the founding instrument contains essential clauses related to investments, accounts, amendments, dissolution, etc. This is so crucial that it is detailed separately in the next section.

5. Document evidencing creation (if no instrument exists): In the rare case where a trust was established without a formal instrument, any document that proves its creation and objectives must be provided.

6. Self-certified copy of the registration with Registrar of Companies or registrar of Firms and Societies or Registrar of Public Trust: This certificate proves the legal status of the entity under its primary governing statute (e.g., Societies Registration Act, 1860; Companies Act, 2013). This is a key element of the "compliance with other laws" check.

7. Self-certified copy of the documents evidencing adoption or modification of the objects, if any: If the organization has ever altered its objectives, the resolution and amended documents must be provided. The department will verify that the new objects remain charitable as defined under Section 2(15) of the Act and that the modification was reported as required.

8. Self-certified copy of registration under Foreign Contribution (Regulation) Act, 2010, if applicable: For any organization that receives or has received foreign funding, a valid FCRA registration certificate is non-negotiable. An expired or cancelled license is a major compliance red flag.

9. Lease agreement or any other document evidencing the existence of the trust at the stated address: This document, such as a rent agreement or property ownership papers, verifies the physical operational address of the organization.

B. Financial & Audit Records (The Story of Your Transactions)

These documents provide a transparent account of the organization's financial activities and adherence to tax laws.

10. Copies of acknowledgement for having filed Return of Income for the last Three years/ since inception, along with self-certified copies of Financial Statements and Audited Report in Form No.10B: This is the financial core of the enquiry.

    • ITR-7 Acknowledgements: Prove timely and consistent income tax return filing.

    • Audited Financial Statements: The Income & Expenditure Account, Balance Sheet, and Receipts & Payments Account for the last three financial years. These show the scale of operations, application of income towards charitable objects, and details of any income accumulation.

    • Form No. 10B: This is the mandatory audit report furnished by a Chartered Accountant under Section 12A(1)(b). It certifies that the accounts have been audited and provides specific details required by the tax authorities. Its timely filing is a prerequisite for claiming tax exemption. 

    • Form No 9/10: This is for those organizations who have accumulated their income for the future years or have not received the income during the year under consideration. 

11. Provisional Financial Statements for the current Financial Year: This provides the department with a real-time view of the organization's ongoing activities and current financial position.

12. Details of bank accounts held by the trust and copy of the Bank statements: A complete list of all bank accounts with their details (bank name, branch, account number) and statements for a relevant period allows for a full verification of all receipts and payments, ensuring financial transparency.

13. List of Fixed Deposits, details of investments made on immovable property/ movable property purchased in the last three years: The department will scrutinize this list to ensure that all investments and deposits are made in modes specified under Section 11(5) of the Act. Any investment outside these specified modes is a serious compliance violation that can jeopardize the exemption.

C. Operational & Activity Proof (Demonstrating Your Charitable Purpose)

These documents provide the narrative and evidence of the organization's on-the-ground work.

14. Detailed note on activities of the Trust/Institution since inception or for the last three years, whichever is later, along with supporting documentary evidence: This is the qualitative report that brings the financial numbers to life. It should be a comprehensive narrative of the activities undertaken, supported by evidence like brochures, annual reports, photographs of events, press clippings, and beneficiary testimonials. This directly addresses the "genuineness of activities" test.

15. Whether the Objects and activities of the Trust/Institution is a Charitable/ Religious/ Others: The organization must provide a clear note explaining how its objects and activities fall within the definition of "charitable purpose" under Section 2(15) of the Act. This includes categories like relief of the poor, education, yoga, medical relief, preservation of environment, or the advancement of any other object of general public utility. For this last category, the department is particularly vigilant about any activities that are commercial in nature.

16. Permission/approval from the concerned authorities for running any educational institutions/ old age home/Hospital/orphanages etc.: This is a critical component of the "compliance with other laws" check. An organization running a school must have approval from the relevant education board; a hospital must have licenses from health authorities. Failure to produce these can be a fatal flaw in the renewal application.

D. Governance & Management Details (The People Behind the Mission)

These documents provide insight into the leadership and governance of the organization.

17. Whether any application for approval u/s 12AB or 80G(5)(vi) was rejected in the past?: Complete transparency is essential. If a previous 12AB or 80G application was rejected, a self-certified copy of the rejection order and a note explaining the reasons must be provided. The department will verify if the issues that led to the prior rejection have been rectified.

18. List of Trustees/Governing Body Members with detailed information: This is a deep dive into the organization's management and governance structure. The required details include:

    • Name, address, PAN, and phone number for basic identity verification.

    • Educational qualifications, occupation, credit history, and criminal history, if any. This serves as a background and integrity check on the fiduciaries.

    • Employment during the last two years and details of any other Trust/Society they are associated with. This helps the department identify potential conflicts of interest, related party transactions, or the inter-mingling of funds and activities between associated entities.

Section 3: The Constitutional Test – The 7 Non-Negotiable Clauses for Your Trust Deed/MOA

The founding instrument—be it a Trust Deed or a Memorandum of Association—is the constitution of the non-profit organization. The Income Tax Act mandates that this constitution must contain certain specific clauses to ensure that the entity's charitable nature is permanently enshrined and cannot be misused for private benefit. The absence, or improper wording, of these clauses is one of the most common and definitive reasons for the rejection of a registration or renewal application. The following table outlines these mandatory clauses, providing a clear checklist for a self-audit of the organization's governing document.

1. Investment Clause - "The funds of the Trust/Society shall be invested in the modes specified under the provisions of Section 13(1)(d) read with Section 11(5) of the Income Tax Act, 1961, as amended from time to time."

2. Accounts Clause - "Proper books of accounts shall be maintained for the Trust/Society, which shall be audited annually by a qualified Chartered Accountant. The accounting year shall be from 1st April to 31st March."

3. Amendment Clause - "No amendment to the Trust Deed/Memorandum of Association shall be made which may prove to be repugnant to the provisions of Sections 2(15), 11, 12, 13, and 80G of the Income Tax Act, 1961. No amendment shall be carried out without the prior approval of the Commissioner of Income Tax."

4. Dissolution Clause - "In the event of dissolution or winding up of the Trust/Society, the assets remaining shall not be distributed among the trustees/members but shall be transferred to another charitable organization with similar objects and which enjoys recognition under Section 80G of the Income Tax Act, 1961."

5. Irrevocability Clause - "The Trust/Society shall be irrevocable."

6. Beneficiary Clause - "The benefits of the Trust/Society shall be open to all, irrespective of caste, creed, or religion."

7. Utilisation Clause - "The funds and income of the Trust/Society shall be solely utilized for the achievement of its objects, and no portion shall be distributed to the trustees/members by way of profit, dividend, or interest."

Each of these clauses serves a specific regulatory purpose. The Dissolution Clause is critical as it prevents the founders or members from distributing the organization's accumulated assets among themselves upon its closure, ensuring the wealth remains in the charitable sector. The Amendment Clause acts as a lock, preventing the organization from altering its core charitable objects to non-charitable ones after securing tax registration. Finally, the Investment Clause is a safeguard that ensures the organization's funds are not diverted into risky private ventures or investments that could benefit the trustees personally, restricting them to secure, government-approved avenues.

Section 4: Expert Strategies for a Flawless Renewal

Beyond simply collecting documents, a strategic approach can significantly enhance the probability of a smooth and successful renewal. The following strategies are based on extensive experience in representing organizations before tax authorities.

• Strategy 1: Conduct a Pre-emptive Self-Audit: Well before the filing deadline, the organization's management should conduct a rigorous internal audit. The checklists provided in Section 2 and Section 3 of this guide should be used as the audit program. If the Trust Deed is found to be missing a mandatory clause, the legal process for amendment should be initiated immediately. If financial records are incomplete, they should be rectified. This proactive approach allows for the identification and correction of deficiencies before they come under departmental scrutiny.

• Strategy 2: Ensure Holistic Compliance: The renewal enquiry is a 360-degree review of the organization. It is imperative to ensure that all other statutory filings are up-to-date. This includes not only ITR-7 and Form 10B but also, crucially, the annual filing of Form 10BD (Statement of Donations Received) and the issuance of Form 10BE (Certificate of Donation) to donors. A failure in this donation reporting compliance is a direct violation of the conditions for 80G approval and will be viewed with extreme seriousness during the enquiry.

• Strategy 3: File Two Separate Applications: A common point of procedural confusion is that Form 10AB must be filed twice—once for the renewal of registration under Section 12AB and a second time for the renewal of approval under Section 80G. Each application is distinct and requires the selection of the correct corresponding section code within the online form.

• Strategy 4: Understand the New 10-Year Validity Nuance: An amendment introduced by the Finance Act, 2025, provides a significant benefit for smaller organizations. For the renewal of 12AB registration, if the trust's total income (calculated before claiming exemptions under Sections 11 and 12) was ₹5 crore or less in each of the two financial years immediately preceding the year of application, the renewed registration will be valid for 10 years instead of five. It is vital to note, however, that this extended validity applies only to the 12AB registration; the validity of the renewed 80G approval remains five years for all organizations. Although as on the date of publication of this post the department hasn't passed the internal communication with the CIT(E)/PCIT for grant of 10 year validity 12AB registration. Thus we may expect the renewal being done for 5 years and sometime in the next term of 5 years we get a notification for the extension of the validity. Also a few representations have been made with the Department to also extend the same validity for the 80G Registration. 

• Strategy 5: Prepare a Compelling Narrative: The "Note on Activities" (Item 14 in the checklist) should not be treated as a dry, bureaucratic submission. It is the organization's primary opportunity to tell a compelling story of its impact. This narrative should be rich with data, beneficiary stories, and high-quality visuals. It is the chance to proactively and persuasively demonstrate the "genuineness of activities" before the assessing officer even raises a question.

Conclusion: Securing Your Mission for the Next Chapter

The mandatory renewal of 12AB and 80G registrations represents a fundamental shift in the regulatory environment for non-profits in India. The process is no longer a one-time approval but a recurring, rigorous test of an organization's ongoing compliance, transparent governance, and the genuine nature of its charitable work. It is unequivocally not a rubber-stamping exercise.

Success in this new paradigm lies in proactive, diligent, and meticulous preparation. An organization that approaches the deadline with its documentation in perfect order, its constitutional deed fully compliant with the law, its financial and statutory filings up-to-date, and its operational narrative clear and compelling can face the departmental enquiry with confidence. The process, while potentially daunting, should also be viewed as an opportunity—a chance to strengthen internal controls, refine governance practices, and reaffirm the organization's commitment to its mission. A successful renewal is far more than a compliance certificate; it is a validation of the organization's invaluable work and a license to continue pursuing its mission for the next chapter.