How to Register a Temple Trust Under Section 12A in India (2025 Guide)

A temple or trust that earns income — from donations, rent, investment returns or festival collections — is technically subject to income tax like any other entity. Section 12A registration is what changes that. It grants your institution tax-exempt status, meaning the surplus of your income over expenditure is not taxed, provided the funds are used for charitable or religious purposes.

Without Section 12A registration, your trust's surplus is taxable at the maximum marginal rate — currently 30% plus surcharge. For a temple collecting ₹20 lakh in donations and spending ₹16 lakh on religious and charitable activities, the ₹4 lakh surplus would attract a tax of over ₹1.2 lakh. With Section 12A registration, that tax liability is nil.

This guide explains exactly how to obtain and maintain Section 12A (now called 12AB) registration for a temple trust in India.

Section 12A vs Section 12AB — what changed

Before the Finance Act 2020, the registration was simply called "Section 12A registration" and was permanent once granted. The 2020 amendments replaced this with a new framework:

• Section 12AB replaced Section 12A for all new applications from 1 October 2021
• Existing institutions registered under old Section 12A had to re-register under Section 12AB — this was a one-time mandatory transition
• New registrations under Section 12AB are initially granted for 5 years, after which the institution must apply for renewal
• Institutions that completed the transition to 12AB now hold a permanent registration (subject to ongoing compliance)

When this guide refers to "Section 12A registration," it includes the current Section 12AB framework.

Who needs Section 12A registration?

Any institution that meets these criteria should apply:

• Is a trust, society or Section 8 company established for charitable or religious purposes
• Earns income (donations, rent, interest, event income) in India
• Wants that income to be exempt from income tax
• Plans to apply for Section 80G registration (80G requires an active 12A/12AB registration)

This covers Hindu temple trusts, Jain temple trusts, Sikh gurdwara committees, charitable trusts running schools or hospitals, NGOs and any similar institution.

Who does not need it:

• Religious institutions whose total income does not exceed the basic exemption limit (rare in practice once donations are included)
• Government temples administered directly by state governments (these are covered under separate provisions)

Section 12A and Section 80G — the connection

These two registrations are separate but linked.

Section 12A/12AB gives your institution tax-exempt status — your surplus is not taxed.

Section 80G gives your donors tax deductions — they can claim deductions on their personal or business income tax returns for donations made to your institution.

You can hold Section 12A without Section 80G, but you cannot hold Section 80G without first having Section 12A. Most temple trusts should apply for both. Our guide on generating 80G receipts covers the 80G side in detail.

Documents required for Section 12AB application

Prepare these documents before starting the online application. Incomplete applications are returned and delay the process.

Constitutional documents

• Trust deed — the original registered trust deed, with all amendments, certified by a gazetted officer or notary
• Certificate of registration of the trust under the relevant state Public Trusts Act (e.g. Rajasthan Public Trusts Act 1959, Maharashtra Public Trusts Act 1950)
• Memorandum and Rules (for societies registered under the Societies Registration Act)
• Certificate of Incorporation (for Section 8 companies under Companies Act 2013)

PAN and identity documents

• PAN of the institution — mandatory; apply for PAN first if not already obtained
• PAN of all trustees — individual PANs of all current trustees/office bearers
• Aadhaar of all trustees — linked to their PANs

Financial documents

• Audited accounts for the last 3 financial years (if the institution is more than 3 years old)
• Balance sheet and income-expenditure statement for each year
• Bank statements for the last 12 months
• For new institutions (less than 3 years old): projected income-expenditure for 3 years

Activity documents

• List of activities carried out by the institution — what religious or charitable work has been done, with supporting documents such as photographs, event reports, beneficiary lists
• List of trustees with names, addresses, PANs and Aadhaar numbers

How to apply online — step by step

The application is filed through Form 10A (for new registrations) on the Income Tax e-filing portal.

Step 1: Log in to the IT portal Go to incometax.gov.in. Log in using your institution's PAN. If this is the first time, register the institution as a new user.

Step 2: Navigate to Form 10A Go to: e-File → Income Tax Forms → File Income Tax Forms → Form 10A

Step 3: Fill in institution details

• Legal name, PAN, date of formation, nature of institution (trust / society / company)
• Registration details under state law (which Act, registration number, date)
• Objects of the institution as stated in the trust deed

Step 4: Upload documents Scan and upload all required documents as PDFs. File size limits apply — compress large documents before uploading. The portal accepts PDF, JPG and PNG formats.

Step 5: Fill in trustee details Enter the name, PAN, Aadhaar and address of each trustee or governing board member.

Step 6: Describe activities Provide a description of charitable or religious activities conducted. Be specific — mention events, beneficiaries, expenditure on each activity.

Step 7: Submit with DSC or EVC The application must be verified using a Digital Signature Certificate (DSC) of an authorised signatory, or an Electronic Verification Code (EVC) sent to the registered mobile number.

Step 8: Track the application After submission, you receive an acknowledgment number. You can track the status on the portal under e-File → Income Tax Forms → View Filed Forms.

What happens after you apply

Timeline: The Commissioner of Income Tax (Exemptions) — CIT(E) — is expected to process applications within 1 month from the date of receipt for new institutions. In practice, processing can take 2–4 months, especially if the officer calls for additional documents.

Provisional registration: For institutions less than 1 year old that need registration to open a bank account or begin operations, the portal issues a provisional 12AB registration valid for 3 years. This must be converted to a regular registration within 6 months of the institution completing 1 year of operations.

Additional information notice: The CIT(E) may issue a notice asking for clarification or additional documents. Respond within the time given — typically 15 to 30 days.

Certificate issued: Once approved, a registration certificate is issued in Form 10AC. This certificate contains your unique registration number (URN), which must appear on all 80G receipts, Form 10BD filings and official communications.

After registration — ongoing compliance obligations

Section 12AB registration is not a one-time event. Maintaining it requires annual compliance.

Annual ITR-7 filing

Every institution registered under Section 12A/12AB must file ITR-7 annually, even if its income is fully exempt. The due date is 31st October for institutions subject to audit, or 31st July for others.

Annual audit

If your institution's total income (before exemption) exceeds ₹2.5 lakh, the accounts must be audited by a chartered accountant. The audit report is filed in Form 10B or Form 10BB along with ITR-7.

Application of income

At least 85% of income must be applied for charitable or religious purposes in India within the same financial year. If you are unable to spend 85% in a year, you can file Form 9A to defer application — but this must be done before the due date of ITR-7.

Accumulation of funds

If you wish to accumulate funds beyond the 85% application requirement for a specific purpose (construction of a new prayer hall, renovation project), you must file Form 10 giving the purpose and timeline. Accumulated funds must be used within 5 years.

Registration renewal

Initial 12AB registrations are granted for 5 years. You must apply for renewal at least 6 months before expiry using Form 10AB. Failure to renew on time means your institution loses tax-exempt status for the gap period.

State-specific temple trust registration

Section 12AB is a central Income Tax registration. But most states also have state-level trust registration requirements.

Rajasthan: The Rajasthan Public Trusts Act 1959 requires all public trusts to register with the Charity Commissioner or District Collector. A separate registration certificate and annual returns to the state authority are mandatory.

Maharashtra: The Bombay Public Trusts Act 1950 (which extends to Maharashtra) requires registration with the Charity Commissioner's office in Mumbai or the relevant regional office.

Tamil Nadu and Andhra Pradesh: These states have separate temple-specific legislation — the Hindu Religious and Charitable Endowments (HR&CE) Acts — that govern temples under state control. Temples under HR&CE administration are separately regulated.

Karnataka: The Karnataka Hindu Religious Institutions and Charitable Endowments Act 1997 governs temples in Karnataka.

Your CA or legal advisor can advise on the specific state-level registration applicable to your institution. Section 12AB is required regardless of state law.

Connecting registration to day-to-day management

Once your institution is registered, the compliance calendar becomes ongoing. Managing trustee records, donor receipts and annual reports becomes central to maintaining your registration.

The annual audit preparation guide on this blog covers what to prepare for your CA every year. The better your records throughout the year — and the more your expense vouchers and donation records are maintained digitally — the less your audit preparation costs in time and CA fees.