Non-profit organizations such as Charitable Trusts, Section 8 Company, and Welfare Societies are entitled to various tax exemptions under section 12A of the Income Tax Act, 1961. NGOs are basically organizations that are meant for charitable and non-profit activities. Non-profit organizations have been granted tax relief under Section 11 and Section 12 of the Income Tax Act, 1961, as they contribute to the welfare of society by providing social services. Nevertheless, to claim such tax benefits individuals need to get registered as per the norms of Section 12A of the Income Tax Act, 1961. Non-profit organizations should also become familiar with the various components of Section 12A of the Income Tax Act, 1961. This will help them avoid making the wrong decisions. 12A and 80G registration are good for all.