CBDT prescribes conditions for merger of registered non-profit organisations; Form 112A notified

On 30 October 2026, the Central Board of Direct Taxes (CBDT) notified the Income-tax (Eighth Amendment) Rules, 2026, further amending the Income-tax Rules, 2026.

The amendment lays down the conditions for merger of a registered non-profit organisation with another registered non-profit organisation having the same or similar objects.

Key Highlights:

1. The amendment rules have been framed under Section 533 read with Sections 352(4) [Table: Sl. No. 8] and 354A of the Income-tax Act, 2025.

2. A new Rule 189A has been introduced to prescribe conditions for the merger of registered non-profit organisations.

3. A regularly registered non-profit organisation under Section 332 cannot merge with a provisionally registered organisation under the same section, and vice versa.

4. The merging organisation must not have any outstanding tax, interest, penalty, fine or other demand payable pursuant to an order under the Act, where such demand is not under appeal before an appellate authority.

5. Where an appeal against an outstanding demand is pending, the merged organisation shall be responsible for discharging the liability once the appeal attains finality.

6. The objects of the merged non-profit organisation cannot be amended for a period of five years from the end of the financial year in which the merger takes place.

7. All assets and liabilities of the merging organisation shall become the assets and liabilities of the merged organisation from the date of merger.

8. The merger must not result in any direct or indirect benefit to any related person referred to in Section 337(1) [Table: Sl. No. 2] of the merging or merged organisation.

9. The merged organisation will assume various tax responsibilities of the merging organisation, including compliance with conditions relating to income application, accumulated income, investments and payment of additional income tax where applicable.

10. The merged organisation must intimate the jurisdictional Principal Commissioner or Commissioner of Income-tax in Form No. 112A within one month from the end of the month in which the merger becomes effective.

11. Assessments, reassessments and other proceedings initiated against the merging organisation may continue against the merged organisation.

12. Both the merging and merged organisations must get their books of account audited as on the date of merger.

13. The amendment introduces Form No. 112A- Intimation for Merger of Registered Non-Profit Organisations.

14. The form requires disclosure of:

    • Details of the merging organisation;

    • Details of the merged organisation;

    • Date of merger;

    • PAN, address and contact details;

    • Resolution approving the merger; and

    • Prescribed declarations and undertakings.

15. The merged organisation is also required to submit supporting annexures including:

    • Trust deeds of both organisations;

    • Registration certificates;

    • Merger resolution;

    • Audited books of account;

    • Reasons for the merger.

16. Form No. 112A must be furnished electronically using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

Also Read: CBDT Notifies GAAR Clarifications Under Income-tax (Amendment) Rules, 2026

[Income-tax (Eighth Amendment) Rules, 2026, dated 30-10-2026]