Rules and Form 112A for Merging Registered Non-Profit Trusts or Societies
Non-profit organisations merging with similar entities must meet specific tax conditions and file Form 112A within one month after the merger month.
- Document
- Notification Notification No. 139/2026
- Dated
- 03 Nov 2026
- Effective
- Date of publication in the Official Gazette (publication date not stated in the document; notification dated 30 October
- Act by
- Within one month from the end of the month in which such merger comes into effect
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- File Form 112A electronically within one month after the merger month.
- Both merging and merged non-profits must audit accounts as on merger date.
- Entities cannot merge if one holds permanent registration and the other provisional.
- Clear all undisputed tax dues before completing the merger.
- Merged non-profits cannot change their charitable objects for five years.
In short
The Central Board of Direct Taxes (CBDT) issued Notification No. 139/2026 to notify the Income-tax (Eighth Amendment) Rules, 2026. This notification introduces Rule 189A and Form No. 112A, laying down the mandatory conditions and procedure when two registered non-profit organisations with similar charitable aims merge.
What has changed
How it worked before
Earlier, the tax rules did not prescribe a dedicated procedure or a specific compliance form to intimate the merger of charitable trusts or non-profits. Merging entities had no formal notification mechanism to transfer tax liabilities and confirm operational conditions with the income tax department.
What has changed
The notification inserts Rule 189A and Form No. 112A into the tax rules. A non-profit can now merge only with another entity sharing the same registration status and similar objectives. Both organisations must get their financial accounts audited by an accountant as on the merger date. Undisputed tax demands must be cleared, all assets and legal proceedings shift to the merged entity, and its charitable objects cannot be amended for five years. The surviving non-profit must submit Form 112A electronically to the tax commissioner within one month after the month of merger.
Who this affects
This affects trustees, directors, and administrators of registered charitable trusts, non-profit societies, and section 8 companies planning to merge with another registered non-profit carrying on similar work.
An example
A registered educational trust decided to merge into another registered charitable trust running similar schools on 12 November 2026. Both trusts cleared all undisputed income tax dues and had their accounts audited by a chartered accountant as on 12 November. The surviving trust took over all properties, ongoing tax assessments, and committed not to change its trust objects for five years. The surviving trust then filed Form 112A online with the tax department on 20 December 2026.
What you should do
Ensure both non-profits hold matching registration statuses and settle any undisputed tax debts before merging. Appoint a chartered accountant to audit the accounts of both entities as on the effective merger date. After executing the merger, file Form No. 112A electronically with the jurisdictional tax commissioner using a digital signature or electronic verification code within one month from the end of the merger month.
Deadline · Within one month from the end of the month in which such merger comes into effectIf you do nothing
If an entity merges without following these rules or fails to file Form 112A, the merger will not be recognised under tax law. The merging non-profit may be treated as having transferred its assets illegally, triggering a heavy exit tax on its accumulated wealth. The surviving organisation could also lose its tax exemption benefits and face tax recovery proceedings.
The terms explained
- Non-profit organisation
- A trust, society, or company registered under tax law to carry out public welfare activities without profit motive.
- Form No. 112A
- The official online income tax form used to report the merger of two registered non-profit organisations.
- Exit tax (additional income-tax)
- A tax levied on the market value of charitable assets when a non-profit violates tax rules or dissolves.
- Provisional registration
- A temporary tax registration granted to a newly created non-profit before obtaining full regular registration.
The original document
| Issued by | IT |
|---|---|
| Document | Notification Notification No. 139/2026 |
| Full title | CBDT has notified the Income-tax (Eighth Amendment) Rules, 2026, vide Notification No. 139/2026 dated 30 October 2026, introducing Rule 189A and new Form 112A for intimating the merger of registered non-profit organisations having the same or similar objects under the Income-tax Act, 2025. |
| Issued on | 03 November 2026 |
| Effective | Date of publication in the Official Gazette (publication date not stated in the document; notification dated 30 October |
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