When India replaced the Income-tax Act, 1961 with the sweeping Income-tax Act, 2025 effective from April 1, 2026, it brought in a completely new set of forms, rules and section numbers. One of the most critical new forms for the country's vast ecosystem of registered non-profit organisations (NPOs) is FN 110: the application for change of purpose of accumulation or setting apart of income under Section 342(5) of the Income-tax Act, 2025, read with Rule 186 of the Income Tax Rules, 2026.
This form has no predecessor under the Income Tax Rules, 1962, it is a brand-new compliance requirement born out of the new Act's structured approach to governing how registered NPOs manage accumulated funds. FN 110 is an important application to be made for amending the purpose of utilising the amount accumulated or set apart in FN 109. Once submitted, it cannot be edited.
What is FN 110 and who must file it?
FN 110 is a digital/electronic application filed by a registered non-profit organisation that wishes to amend the original purpose as stated in the previously filed FN 109, for which income was accumulated or set apart for a particular tax year.
Under the IT Act 2025, NPOs that accumulate income (rather than immediately applying it for charitable or religious purposes) must declare the specific purpose of that accumulation in FN 109. If, subsequently, the organisation decides to utilise those funds for a different purpose, it must seek formal approval from the Income Tax Department by submitting FN 110.
| Attribute | Details |
|---|---|
| Form name | FN 110 - Application for change of purpose of accumulation or setting apart of income |
| Applicable Act | Income-tax Act, 2025 (replaces IT Act, 1961 from 1 April 2026) |
| Governing section | Section 342(5) of the Income-tax Act, 2025 |
| Corresponding rule | Rule 186 of the Income Tax Rules, 2026 |
| Old Act equivalent | No corresponding form under IT Rules, 1962 (new provision) |
| Who must file | Any registered non-profit organisation amending the purpose of income accumulated/set apart in FN 109 |
| Mode of filing | Electronically / digitally only — via Income Tax e-Filing portal |
| Filed to | Commissioner of Income Tax (CPC), made available to jurisdictional officer |
| Editable after submission? | No - once submitted, FN 110 cannot be edited |
The FN 109 → FN 110 → FN 111 workflow explained
FN 110 is not a standalone form, it sits in the middle of a three-form compliance chain that governs how NPOs manage accumulated income. Understanding this flow is essential:
1. FN 109 Original accumulation form - NPO declares the specific purpose and tax year for which income is being accumulated/set apart.
2. FN 110 Amendment application - NPO seeks approval to change the stated purpose of accumulated income. Filed electronically to CIT (CPC).
3. FN 111 Jurisdictional officer's response - accepts or declines the proposed amendment. Only after acceptance may the NPO use funds for the new purpose.
Critical: The NPO may only utilise the accumulated/set-apart amount towards the amended purpose after the jurisdictional officer formally accepts FN 110 via FN 111. Premature utilisation before acceptance could attract tax consequences.
Is FN 110 mandatory, and when must it be filed?
Yes — FN 110 is mandatory for every registered NPO that opts to change the purpose of accumulation or set-apart for any particular tax year from what was originally stated in FN 109. The obligation is event-driven: it must be filed whenever such a change of purpose is opted for. There is no fixed annual deadline - the trigger is the decision to amend, not a calendar date.
Warning: A valid PAN is mandatory for all applicants filling FN 110. The form cannot be filed in the absence of PAN. Ensure Part A is filled completely - once submitted, no edits are permitted.
Key rules and restrictions at a glance
| # | Rule / restriction | Why it matters |
|---|---|---|
| 1 | FN 110 can only be filed online - no offline mode available. | NPOs without e-filing portal access must register before filing. |
| 2 | Once submitted, FN 110 cannot be edited or revised. | All details must be verified carefully before submission. Errors cannot be corrected post-filing. |
| 3 | PAN is mandatory - the form cannot be filed without a valid PAN in Part A. | Ensures identity verification and accurate tax record mapping. |
| 4 | FN 110 is filed to CIT (CPC) on the e-filing portal. | It is then routed to the jurisdictional officer for approval or rejection. |
| 5 | Funds can only be applied to the new purpose after FN 111 acceptance. | Premature application of funds may attract tax implications. |
| 6 | FN 110 has no counterpart under IT Rules, 1962 — it is entirely new. | NPOs familiar with the old Act must learn this as a fresh compliance obligation. |
FAQs
Q1. What is FN 110?
FN 110 is an application to be furnished digitally/electronically seeking approval for the proposed amendment to the original purpose as mentioned in FN 109 filed, for which the amount of income was accumulated or set apart for a particular tax year.
Q2. Who should file FN 110?
Any registered non-profit organisation opting to amend the purpose of accumulation/set apart of any particular tax year from the original purpose stated in FN 109 is required to file FN 110.
Q3. Is FN 110 mandatory?
Yes. FN 110 is mandatory for those registered non-profit organisations that are opting to amend the purpose of accumulation or set apart of any particular tax year from the original purpose stated in FN 109.
Q4. What is the time limit for filing FN 110?
FN 110 is required to be filed as per the requirement whenever a change of purpose of accumulation or set apart is opted. It is event-driven, not tied to a fixed annual deadline.
Q5. Where is FN 110 filed and to which authority?
FN 110 is required to be furnished electronically to Commissioner of Income Tax (CPC) on the e-filing portal. It is then made available to the jurisdictional officer for approving or declining the application.
Q6. What happens after FN 110 is filed?
Upon successful filing and its subsequent acceptance by the jurisdictional officer in FN 111, the registered NPO may utilise the accumulated or set-apart amount towards the amended purpose as approved.
Q7. Can FN 110 be edited after submission?
No. Once FN 110 is submitted, it cannot be edited. Ensure all details are correct before submission.
Q8. Can PAN be left blank in Part A of FN 110?
No. A valid PAN is mandatory for all applicants. FN 110 cannot be filed in the absence of PAN.
Q9. Can FN 110 be filed offline?
No. FN 110 can only be submitted online through the Income Tax e-Filing portal.
Q10. Why is FN 110 important?
FN 110 is an important application to be made for amending the purpose of utilising the amount accumulated or set apart in FN 109. Without it, the NPO cannot legally redirect accumulated funds to a new purpose.
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