The Income Tax Department has introduced Draft Form No. 104, a comprehensive application form for granting provisional registration or provisional approval to charitable trusts, societies, Section 8 companies and other non-profit organisations under the Income-tax Act, 2025.
The draft form provides a structured compliance mechanism for newly formed entities whose activities have not yet commenced and who seek recognition under sections 332 and 354 of the new tax regime.
Who Can Apply Using Form 104?
Form 104 is applicable to applicants seeking:
- Provisional registration under section 332(3) where activities have not commenced
- Provisional approval under section 354(2) for the purposes of section 133(1)(b)(ii)
- Or both, subject to eligibility conditions
The form clearly states that if activities have already commenced, the applicant must file Form No. 105 instead, making Form 104 exclusively for pre-commencement registration.
Detailed Disclosure Requirements
The draft form mandates extensive disclosures across multiple sections, including:
1. Basic Details
Applicants must furnish PAN, contact information, nature of activities, and confirmation regarding commencement of operations. The form also requires a declaration on whether the trust is irrevocable as per its deed.
2. Nature and Constitution of the Applicant
Entities must select their legal structure, such as:
- Public Trust
- Society registered under the Societies Registration Act, 1860
- Section 8 company under the Companies Act, 2013
- Government-financed institution
- Specified funds and institutions listed in Schedules III and VII
The form also requires disclosure of formation details, including registration number and the authority granting it.
3. Objects of the Organisation
Applicants must specify their charitable purposes from predefined categories such as:
- Relief of poor
- Education
- Medical relief
- Yoga
- Environmental preservation
- Preservation of monuments
- Advancement of general public utility
If "general public utility" is selected, additional clarification is mandatory.
4. Recognition Under Other Laws
The draft form requires disclosure of registrations under other regulatory frameworks, including:
- Foreign Contribution (Regulation) Act, 2010
- SEBI Act, 1992
- DARPAN Portal of NITI Aayog
- Any other applicable law
This reflects a move toward cross-verification and greater transparency across regulatory bodies.
Disclosure of Key Persons and Beneficial Owners
A notable compliance feature is the requirement to provide complete details of:
- Authors, founders, trustees, directors, and office bearers
- Shareholders holding 5% or more shareholding
- Beneficial owners in case of non-individual entities
Unique identification numbers such as PAN, passport, voter ID or foreign taxpayer identification number must be disclosed, strengthening accountability norms.
Mandatory Annexures
Form 104 requires submission of self-certified documents including:
- Trust deed or incorporation documents
- Registration certificates from ROC or the relevant authority
- FCRA registration, if applicable
- Copies of past rejection orders, if any
- Annual accounts for the previous three years (or NIL declaration)
- A detailed note on proposed activities
This documentation-heavy approach indicates stricter scrutiny before granting tax benefits.
Key Conditions and Restrictions
The draft clarifies several important conditions:
- If the trust is revocable, provisional registration cannot be granted.
- If religious expenditure exceeds 5% of total income, specific consequences may arise.
- Certain combinations of section codes are restricted based on responses provided in the form.
Shift Toward Structured Compliance Under the Income Tax Act, 2025
Draft Form 104 represents a significant procedural overhaul in the registration process for non-profit organisations under the new Income-tax Act, 2025. By standardising disclosures and integrating detailed verification requirements, the government aims to ensure transparency, prevent misuse of tax exemptions, and align the charitable sector with modern compliance standards.
Stakeholders, including charitable trusts, NGOs, educational institutions, and philanthropic funds, are advised to review the draft form carefully and prepare documentation in advance to avoid delays once it is formally notified.
The move signals a clear policy direction, enhanced scrutiny, digital documentation, and tighter regulatory oversight in the non-profit ecosystem.
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