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The Central Board of Direct Taxes amends the Income-tax Rules, 2026, to establish conditions for the merger of registered non-profit organisations. These rules apply to mergers between organisations with identical or similar objects. Merging entities must ensure no outstanding tax demands exist or provide for their payment by the merged entity. The merged organisation must maintain its objects for five years, assume all assets and liabilities, and fulfill all tax and compliance obligations of the merging entity. The merged organisation must submit Form No. 112A to the jurisdictional Commissioner within one month from the end of the month of the merger. Both entities must audit their books of accounts as of the merger date.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 30th October, 2026
INCOME-TAX
G.S.R. 961(E).— In exercise of the powers conferred by section 533 read with sections 352(4) [Table: Sl. No. 8] and 354A of the Income-tax Act, 2025 (30 of 2025) (the Act), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 2026, namely: ___
(1) These rules may be called the Income-tax (Eighth Amendment) Rules, 2026.
(2) They shall come into force on the date of their publication in the Official Gazette.
In the Income-tax Rules, 2026 (hereinafter referred to as the said rules), after the rule 189, the following rule shall be inserted, namely: —
“189A. Conditions for the merger of registered non-profit organisation for the purposes of sections 352(4) [Table: Sl. No. 8] and 354A.— (1) For the purposes of sections 352(4) [Table: Sl. No. 8] and 354A of the Act, the conditions for the merger of registered non-profit organisation with any other registered non-profit organisation having same or similar objects shall be the following, namely: —
(2) Form No. 112A referred to in sub-rule (1)(i) shall be furnished electronically either under digital signature or electronic verification code.
(3) For the purposes of this rule, the expressions —
“FORM NO. 112A
[See rule 189A(1)(i)]
Intimation for merger of registered non-profit organisations
Part A: Details of the merging registered non-profit organisations
Name:
(refer Note 1)
Address:
(refer Note 2)
Permanent Account Number (PAN):
E-mail Id:
Contact Number:
Country
Code Number
Date of merger:
Part B: Details of the merged registered non-profit organisation
Name:
(refer Note 1)
Address:
(refer Note 2)
PAN:
10 E-mail Id:
Contact Number:
Country Code Number
Other details to be provided as separate enclosure:
(refer Note 3)
Declaration
I, __________________________ on behalf of ________________________ (merged registered non-profit organisation) having Permanent Account Number (PAN) hereby intimate that by way of a resolution passed by the trustees/governing body/management, on ______________ (dd/mm/yyyy) the merger of the ________________ (name of the merging registered non-profit organisation) with _________________________ (name of the merged registered non-profit organisation) has been decided upon. The details of the merging and merged entities are provided in Part A and Part B above.
I further undertake that, —
• the objects of the merged registered non-profit organisation shall not be amended within a period of five years from the end of the financial year in which merger takes place;
• application of the income of the merging registered non-profit organisation shall be given effect to by the merged registered non-profit organisation as per section 341;
• application of the accumulated income of the merging registered non-profit organisation shall be given effect to by the merged registered non-profit organisation as per section 342;
• the claim of depreciation where cost of acquisition has already been claimed as application by the merging registered non-profit organisation shall not be claimed by the merged registered non-profit organisation;
• the merged registered non-profit organisation shall be liable to pay tax under section 334 in respect of the specified income of the merging registered non-profit organisation;
• contribution made by any person to the merging registered non-profit organisation shall be taken into account for calculating the total contribution to the merged registered non-profit organisation for the purposes of section 355(h)(ii);
• the merged registered non-profit organisation shall ensure that the conditions mentioned in section 340 are not violated, not even by the merging registered non-profit organisations;
• investment of the funds by the merged registered non-profit organisation shall be made as per modes specified in section 350; and
• payment of the additional income-tax as per the provisions of section 352 shall be made by the merged registered non-profit organisation whenever such liability arises.
