Society Registration India — 12A & 80G Ready: Who Needs It and Who Does Not
Whether Society Registration India — 12A & 80G Ready applies to a given business is the first thing worth settling, and it is where most of the early questions land. The questions below are the ones raised most often in practice; the full scope of the service is on the Society Registration India — 12A & 80G Ready page.
Does registration under the Societies Registration Act automatically make the Society tax-exempt?
No. Registration under the SRA gives the Society its legal identity. Tax exemption on the Society's income is a separate step — the Society must obtain registration under Section 12A/12AB of the Income-tax Act 1961 (for income up to FY 2025-26) or, from tax year 2026-27, under section 332 of the Income-tax Act 2025. Without 12A/12AB registration, the Society's income (grants, donations, programme revenue) is taxable as income of an Association of Persons (AOP) at the applicable rates.
In practice: This is a frequently misunderstood aspect of Society registration. A Society that receives grants for years without 12A/12AB registration can find that income taxable. Filing 12A in arrears is possible but the process is more complex and may result in denial of retrospective exemption.
Is 80G donor deduction available for all donations to a Society?
No. The 80G deduction is only available once the Society has obtained 80G registration from the IT Department. Additionally, donations to societies with mixed religious activities may not qualify for 80G deduction (which requires that the charitable purpose not be of a religious nature exclusively benefiting a particular religious community). Under the 1961 Act, the deduction is typically 50% of the donated amount, subject to a limit of 10% of the donor's adjusted gross total income for most categories, and it is not available to individual donors taxed under the new (default) regime. From tax year 2026-27, approval is under section 354 of the Income-tax Act 2025 — confirm the equivalent donor-deduction rules.
In practice: Donors — especially corporate CSR donors — typically ask for the 80G registration certificate before finalising a grant. Societies that cannot provide it lose donations to better-organised competitors. PNPC files 80G applications proactively as part of the post-registration package.
Can a Society receive donations from NRIs and foreign sources?
For foreign sources (including foreign nationals, foreign companies, and foreign-incorporated organisations), the Foreign Contribution (Regulation) Act 2010 (FCRA) applies. The Society must either hold FCRA registration from the Ministry of Home Affairs or obtain Prior Permission for each specific receipt. NRI donations — from NRI individuals — are treated as domestic donations and do not require FCRA compliance, provided the NRI is donating from their NRE / NRO account and is not donating on behalf of a foreign entity.
In practice: The FCRA line between NRI donations (permitted) and foreign source donations (FCRA required) is nuanced and frequently misunderstood. We review every foreign receipt before it is accepted to confirm FCRA compliance — an inadvertent FCRA violation carries serious criminal consequences.
What is FCRA registration and when should a Society apply for it?
FCRA registration allows a Society to receive contributions from foreign sources on an ongoing basis. Application is made online through the FCRA portal of the Ministry of Home Affairs.
In practice: PNPC tracks FCRA eligibility from Day 1 — ensuring the domestic expenditure evidence is maintained annually and that the Society's records are FCRA-application-ready by Year 3. Starting the application at Year 3 with 2 years of poorly documented accounts is the most common reason for FCRA delays.
What are the ongoing annual compliance obligations of a registered Society?
Annual obligations typically include: (1) Annual General Meeting (AGM) as required by Bye-Laws — typically once per year, (2) Annual list of managing committee members filed with the Registrar of Societies within the prescribed period after the AGM (14 days in Delhi, varies in other states), (3) Statutory audit by a qualified Chartered Accountant (mandatory under most state Acts), (4) ITR-7 filed with the Income-tax Department by the due date for the year (31 October where the accounts are audited, for years under the 1961 Act — confirm the due date under the Income-tax Act 2025 for tax year 2026-27 onwards), (5) Managing committee elections as required by Bye-Laws. FCRA-registered societies additionally file Form FC-4 (annual foreign contribution return) by 31 December.
In practice: The most commonly missed obligation is the Registrar annual filing — most founders are unaware that a separate return must be filed with the state Registrar beyond the IT return. Penalties vary by state but consistent non-filing can result in the Society being marked inactive or struck off.
Does a Society need to file income-tax returns even if its income is exempt under 12A?
Yes. A Society with 12A/12AB registration must still file ITR-7 every year. The return is filed to claim the exemption — not filing means the exemption is not formally claimed for that year, which can trigger notices. ITR-7 is also the mechanism through which the IT Department verifies that the Society's income is being applied to its charitable objects and that the conditions of registration are being met.
In practice: Late filing of ITR-7 can attract a late fee or penalty and, more seriously, can put the exemption claim for that year at risk — confirm the applicable provision for the relevant year. Consistent ITR-7 filing also demonstrates to grant agencies and institutional donors that the Society is well-governed, and many ask for filed returns before releasing grants.
Can property be owned in the name of the Society?
Yes. A registered Society, having a separate legal identity, can own immovable property (land, buildings) and movable property (vehicles, equipment) in its own name. Any property purchase or disposition must be authorised by a managing committee resolution and, depending on the value and the Bye-Laws, a general body resolution. In Maharashtra and Gujarat, transactions involving immovable property by public trusts and societies require Charity Commissioner approval under the respective Public Trusts Acts.
In practice: We always advise on property vesting language during Bye-Law drafting — ensuring that property acquisition authority is clearly defined to prevent situations where individual office-bearers claim personal rights over Society property.
Can the Society change its name or amend its objects after registration?
Yes. Amendments to the Memorandum (including name and objects) or Bye-Laws can be made through a process defined in the Societies Registration Act and in the Society's own Bye-Laws — typically requiring a resolution passed by a specified majority at a special general meeting, followed by filing the amended documents with the Registrar of Societies for approval. Some states require the Registrar's prior approval; others require post-amendment filing. The 12A/12AB registration may need to be updated if objects change significantly.
In practice: Amending objects after 12A/80G registration requires informing the Income-tax Department and potentially applying for fresh registration in Form 10AB (Form 105 under the Income-tax Act 2025 from 1 April 2026). We advise drafting objects that are specific enough for registration but broad enough to accommodate natural activity evolution — to minimise amendment needs.
What is the difference between a Society and a Trust in practical terms?
The key practical differences are: (1) Governance — a Society is member-driven with elected managing committees; a Trust is controlled by named trustees with no membership democracy. (2) Flexibility — Society bye-laws can be amended by members; Trust deeds are more difficult to amend and often require court involvement. (3) Founding — Society requires minimum 7 persons; a Trust can be created by even one settlor. (4) Accountability — in states with Public Trusts Acts (Maharashtra, Gujarat), public trusts have more Charity Commissioner oversight than societies.
In practice: The choice between Society and Trust comes down to governance philosophy: if the founders want democratic, member-accountable governance, a Society is appropriate. If they want a structure where a small group of named trustees has full control over charitable assets without membership elections, a Trust is better. Neither is 'better' in absolute terms.
Where this sits in the wider engagement
Society Registration India — 12A & 80G Ready rarely arrives on its own. The statutory basis and the current requirements are set out on the Society Registration India — 12A & 80G Ready service page, and the related services are grouped under Business Setup.
What PNPC does
PNPC Global has practised since 1986 across India and the UAE. On Society Registration India — 12A & 80G Ready we take the work end to end — reviewing the facts, preparing and filing what is required, and dealing with the authority through to closure.