CBDT Prescribes Merger Conditions for Registered Non-Profit Organisations Under Income-tax Rules, 2026

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. (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.

2. 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: —
(a) the registered non-profit organisation registered under section 332 shall not be merged with the registered non-profit organisation provisionally registered under section 332;
(b) the registered non-profit organisation provisionally registered under section 332 shall not be merged with the registered non-profit organisation registered under section 332;
(c) there is no tax, interest, penalty, fine or any other sum (hereinafter referred to as the outstanding demand)payable in consequence of any order passed under the Act in respect of the merging registered non-profit organisation where such outstanding demand is not in appeal before any appellate authority;
(d) in a case where an appeal is pending, the outstanding demand for the merging registered non-profit organisation shall be paid by the merged registered non-profit organisation upon the said appeal attaining finality;
(e) 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 the merger takes place;
(f) all the assets and liabilities of the merging registered non-profit organisation shall become the assets and liabilities of the merged registered non-profit organisation from the date of the merger;