The 80G and 12A Registration certificate helps an NGO to get income tax exemption. This exemption is granted to the NGO as well as to the donors. It is essential to obtain the certification immediately after the incorporation of the NGO. The main objective of 80G & 12A Registration is to encourage the donors to contribute to social work and make donations to the organisations having these certifications without the fear of any additional costs. An 80G Certificate is issued by the Income Tax Department to a non-governmental organization (NGO) such as a charitable trust, or a Section 8 Company. The 80G Certificate is granted to encourage the donors to donate funds into such non- profit organizations. By virtue of 12A registration, Trusts, NGOs & other Section 8 companies enjoy exemption from paying income tax. NGOs are basically organizations that are meant for charitable and non-profit activities. However, they do have income and would be required to pay tax as per normal rates if not registered under section 12A of the Income Tax Act. The Section 12A of the IT Act, 1962 does not differentiate between charitable and religious Trusts