Registration of Trusts and Non-Profit Organisations: Section 332, Forms 104 and 105 (Income Tax Act 2025)

A public trust, society, section 8 company or similar body must be registered under section 332 of the Income-tax Act, 2025 to claim the benefits of Part B of Chapter XVII as a "registered non-profit organisation". A new body that has not started activities applies in Form 104 for provisional registration valid for three tax years. A body that has already started activities applies in Form 105 for regular registration valid for five tax years, or ten in some cases. The Income-tax Rules, 2026 (rule 181) prescribe the forms.

This guide covers who is eligible, which of the seven cases in the section 332(3) table applies to you, the time limits for applying and for the order, how long registration lasts, and what happens if you apply late. Every figure comes from the Act (as amended by the Finance Act, 2026) and the Rules, with the section or rule number next to it. Last reviewed against that text on 10 November 2026.

Who can apply for registration as a non-profit organisation?

Section 332(1) lists the persons who may apply to the Principal Commissioner or Commissioner:

• a public trust;
• a society registered under the Societies Registration Act, 1860 or any other law in force in India;
• a company registered under section 8 of the Companies Act, 2013 (including a company registered under section 25 of the Companies Act, 1956 and deemed registered under section 465(2)(g) of the 2013 Act);
• a university established by law, or any other educational institution affiliated to it or recognised by the Government;
• an institution financed wholly or in part by the Government or a local authority;
• a person referred to in Schedule III (Table: Sl. Nos. 27 to 29 and 36) or Schedule VII (Table: Sl. Nos. 17 to 19 and 42); and
• any other person notified by the Board.

What must an applicant satisfy to be eligible?

Section 332(2) sets two conditions. Both must be met.

1. The person is constituted, registered or incorporated in India for one or more charitable purposes (as defined in section 2(23)) or one or more public religious purposes.
2. Its properties are held for the benefit of the general public under an irrevocable trust, either wholly for charitable or religious purposes in India, or partly for such purposes if the person was constituted, registered or incorporated before the commencement of the Income-tax Act, 1961.

Section 2(23) says "charitable purpose" includes relief of the poor, education, yoga, medical relief, preservation of the environment (including watersheds, forests and wildlife), preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility.

Which of the seven registration cases applies to you?

The table in section 332(3) gives seven cases. The case decides the time to apply, the time the tax authority has to pass an order, and how long registration lasts.

Sl. No.	Case	When to apply	Order due	Validity
1	Activities not commenced; not registered under any specified provision earlier	Any time during the tax year from which registration is sought	One month from the end of the month of application	Three tax years commencing from the tax year of application (provisional)
2	Activities commenced; not registered under any specified provision earlier	Any time during the tax year from which registration is sought	Six months from the end of the quarter of application	Five tax years commencing from the tax year of application
3	Provisional registration granted and activities have commenced	Within six months of commencement of activities	Six months from the end of the quarter of application	Five tax years commencing from the tax year of application
4	Provisional registration due to expire and activities not commenced	At least six months before the provisional registration expires	Six months from the end of the quarter of application	Five tax years following the tax year of application
5	Registration due to expire (other than Sl. No. 4)	At least six months before expiry	Six months from the end of the quarter of application	Five tax years following the tax year of application
6	Registration became inoperative on switching regime under section 333	Any time during the tax year from which registration is to be made operative	Six months from the end of the quarter of application	Five tax years commencing from the tax year of application
7	Registered organisation adopted or modified objects that do not conform to the conditions of registration	Within 30 days of the adoption or modification	Six months from the end of the quarter of application	Five tax years commencing from the start of the tax year of application

"Specified provision" is defined in section 355(m). The Rules refer to it in the same sense (rule 181(16)).

Form 104 or Form 105: which one do I file?

Rule 181(1) ties the form to the case. Form 104 goes to the Commissioner of Income Tax (CPC) for provisional registration (case 1). Form 105 goes to the Principal Commissioner or Commissioner having jurisdiction over the applicant for cases 2 to 7. The same rule covers applications for approval under section 354 (relevant for donation deductions), using the same forms.

How is the application filed and verified?

Rule 181(3) requires the application to be furnished electronically, under digital signature if the applicant's return of income has to be furnished under digital signature, and otherwise through an electronic verification code. It must be verified by the person authorised to verify the return of income under section 265. The documents, information and undertakings are those listed in the form (rule 181(2)).

A few procedural points from rule 181:

• On a Form 104 application, the CPC issues an order in Form 106 with a 16-digit alphanumeric Unique Registration Number (URN) (rule 181(4)). Form 104 is treated as non est, and not proceeded with, if activities have already commenced or the applicant has been registered under a specified provision (rule 181(5)).
• On a Form 105 application, the Principal Commissioner or Commissioner passes an order in Form 107: grant with a URN, rejection, rejection with cancellation, or grant under one section code and rejection under the other (rule 181(10)).
• An application can be withdrawn if the request is made within seven days of filing (rule 181(11)).
• If you entered an erroneous section code or nature of activity in Form 105, you can ask for a correction at any time before the Form 107 order is passed (rule 181(15)).

What does the Commissioner check before granting registration?

For cases 2 to 7, section 332(7) lets the Commissioner call for documents or information and make inquiries to be satisfied about the genuineness of the activities and compliance with the requirements of any other law that are material to achieving the objects. If satisfied, a written order granting registration is passed. If not, the applicant must first be given a reasonable opportunity of being heard. Then the order rejects the application (cases 2 and 6), or rejects it and also cancels the existing registration (cases 3, 4, 5 and 7). A copy goes to the applicant and the Assessing Officer.

For case 1, there is no such inquiry: section 332(8) says the Commissioner shall grant provisional registration.

How long does registration last: five years or ten?

Under section 332(5), for cases 3 to 7, the "five years" in the validity column is read as "ten years" if the applicant's total income, computed without giving effect to Part B of Chapter XVII, did not exceed Rs 5 crore in each of the two tax years preceding the tax year of the application. Cases 1 and 2 stay at three and five years respectively.

Worked example 1: a new society, from provisional to regular registration

Assume a society, Asha Education Society, has not started activities and has no earlier registration. All dates are in tax year 2026-27 or later, and "quarter" is read as a calendar quarter (an assumption, not stated in the section).

Step	What happens	Date or period	Basis
1	Society files Form 104 on 10 June 2026	Within tax year 2026-27	Sl. No. 1, column C
2	Order due one month from the end of June	31 July 2026	Sl. No. 1, column D
3	Provisional registration validity: three tax years commencing from 2026-27	2026-27, 2027-28, 2028-29 (ends 31 March 2029)	Sl. No. 1, column E
4	Society starts running its school on 1 October 2027. Form 105 due within six months	By 31 March 2028 (Sl. No. 3)	Sl. No. 3, column C
5	Society files Form 105 on 20 March 2028. Order due six months from the end of the quarter (31 March 2028)	30 September 2028	Sl. No. 3, column D
6	Regular registration: five tax years commencing from 2027-28 (the tax year of the application, which falls in 2027-28 since 20 March 2028 is before 1 April)	2027-28 to 2031-32	Sl. No. 3, column E
7	If total income was at most Rs 5 crore in each of 2025-26 and 2026-27, the five years become ten	2027-28 to 2036-37	Section 332(5)

The result: the society holds provisional registration while it prepares to start work, and moves to regular registration only after activities begin. Missing the six-month window in step 4 has a cost, covered below.

Worked example 2: renewing an expiring registration

Assume Hope Charitable Trust holds a five-year registration that expires at the end of tax year 2026-27, that is, on 31 March 2027. It falls under Sl. No. 5.

1. Last date to apply: at least six months before expiry, so on or before 30 September 2026.
2. Suppose the trust files Form 105 on 15 September 2026. The application is made in tax year 2026-27, in the July to September quarter. The order is due six months from 30 September 2026, that is by 31 March 2027.
3. Validity: for Sl. No. 5, the new period is "five tax years following the tax year in which such application is made". The application is made in 2026-27, so the period runs 2027-28 to 2031-32.
4. Ten-year test: the trust's total income (without the Part B benefits) was Rs 3.8 crore in 2024-25 and Rs 4.6 crore in 2025-26. Both are at most Rs 5 crore, so section 332(5) reads "ten years". Registration then runs 2027-28 to 2036-37.

If the 2025-26 figure had been Rs 5.4 crore, the ten-year rule would not apply, and the trust would get five years.

Real-life example 1: Meena starts a charitable trust

Meena creates an irrevocable public trust in July 2026 to run a free evening coaching centre. The centre will open next year, so activities have not commenced. The trust has no earlier registration. Her chartered accountant files Form 104 in the same tax year. The CPC issues Form 106 with a URN within a month from the end of the month of application. The trust has provisional registration for three tax years. When the centre opens, the trust must apply in Form 105 within six months of commencement. If it forgets, the consequences described in the next section start to apply.

Real-life example 2: Ravi's society changes its objects

Ravi's registered society amends its bye-laws in tax year 2026-27 to add a commercial activity that does not fit its registered charitable objects. Under section 332(3) (Sl. No. 7) it must apply in Form 105 within 30 days of the amendment. If it applies and registration is granted, the new period begins from the start of the tax year of the application. If it does not apply, and the delay is not condoned, section 332(6) makes it liable to tax on accreted income. Under section 352(4) (Sl. No. 3), the specified date is the date of the modification and the due date is the end of that tax year, with payment within fourteen days after that due date.

What if the application is filed late?

Two provisions deal with this.

• Condonation, section 332(4). If an application is made after the time in column C of the table, the Commissioner may condone the delay if there is reasonable cause. The application is then deemed to be in time.
• Tax on accreted income, section 332(6). If the application for cases 3, 4, 5 or 7 is not made on time and the delay is not condoned, the person is liable to pay tax on accreted income under section 352.

Under section 352(1), accreted income is taxed in addition to normal tax, at the maximum marginal rate. Section 352(2) computes it as the aggregate fair market value of total assets minus total liabilities, on the specified date, valued in the prescribed way. Section 352(3) reduces it by the amount attributable to specified assets and related liabilities. The specified person and the principal officer or trustee must pay within fourteen days from the due date in the section 352(4) table.

For example, section 352 treats the following as triggers: cancellation or withdrawal of registration, modification of objects that do not conform to the conditions of registration, failure to apply for renewal when due, and conversion into a form not eligible for registration. The exact specified date and due date differ for each case, so read section 352(4) before advising a client on timing.

What happens to existing registrations from the old law?

Section 332(9) deals with a registration granted before 1 April 2021 under the specified provision of the Income-tax Act, 1961 that has expired. If the person applies under this Part, the Commissioner may condone the delay for reasonable cause and grant registration within three months from the end of the month of application, valid for five years from the commencement of tax year 2021-22. The order is passed in the form and manner prescribed (section 332(10)).

What if the organisation switches regime under section 333?

Section 333(2) provides that the registration under section 332 ceases to operate from the date a registered organisation is notified under the listed serial numbers of Schedule III or Schedule VII, or from 1 April of the tax year in which it claims exemption under Schedule VII (Table: Sl. Nos. 43, 44 or 45). Section 333(3) allows it to apply for registration again (case 6 in the table), on the condition that the notification stops having effect from the date the registration is granted, and that it is not entitled to exemption under those serial numbers afterwards.

Can a registration be cancelled or surrendered?

Rule 181(6) allows the Principal Commissioner or Commissioner, after giving an opportunity of being heard, to cancel a registration granted on Form 104 if the form contained false or incorrect information and did not comply with the electronic furnishing and verification requirements (the rule joins the two grounds with "and"). A registration cancelled this way is treated as never granted (rule 181(7)).

An applicant can surrender a registration granted on Form 104 (Form 106 order) under rule 181(8) only if it has not claimed benefits in its return for any tax year, including the year of surrender, under Part B of Chapter XVII, section 10(23C)(iv), (v), (vi) or (via) or sections 11 or 12 of the 1961 Act (as they stood before repeal), and gives an undertaking that no such claim will be made. A surrendered registration is treated as never granted (rule 181(9)).

If the application was rejected or the registration cancelled because the applicant did not supply the information sought, did not use the opportunity to be heard, or had trust deed terms that made it ineligible, rule 181(12) allows one re-application in Form 105 within one month from the end of the month of the order. The applicant must give reasons, undertake not to appeal (or withdraw any appeal) against the earlier order, and, in the trust deed case, have modified the deed by the date of re-application. Only one such opportunity is allowed (rule 181(13)).

Quick reference: key time limits

Item	Limit	Where
Form 104, provisional registration	Any time during the tax year from which registration is sought	Section 332(3), Sl. No. 1
Form 105 after commencing activities (provisional holder)	Within six months of commencement of activities	Sl. No. 3
Renewal	At least six months before expiry	Sl. No. 4 and 5
Change in objects	Within 30 days	Sl. No. 7
Order on Form 104	One month from the end of the month	Sl. No. 1, column D
Order on Form 105	Six months from the end of the quarter	Sl. Nos. 2 to 7, column D
Withdrawal of an application	Within seven days of filing	Rule 181(11)
Re-application after rejection (one time)	One month from the end of the month of the order	Rule 181(12), (13)
Tax on accreted income	Within 14 days from the due date in the table	Section 352(4)

Does registration also let donors claim a deduction? The section 354 approval

Registration under section 332 does not by itself give donors a deduction. A registered non-profit organisation (or a person in Schedule VII, Sl. No. 1) must separately apply for approval under section 354(1), for the purpose of section 133(1)(b)(ii). It is made in the form and manner prescribed, to the Principal Commissioner or Commissioner (rule 181 covers the form).

• Conditions (section 354(1)): not expressed for the benefit of a particular religious community or caste; established in India for a charitable purpose, with religious-nature expenditure not above 5% of total income in a tax year; no clause allowing assets to go to a non-charitable purpose; regular accounts; the prescribed donation statement and any correction statement; and a certificate to each donor stating the amount donated.
• Timing (section 354(2)): activities not commenced, apply at any time in the tax year from which approval is sought (provisional, three tax years). Activities commenced, same rule (five tax years). Provisional approval holders apply within six months of commencing activities, or at least six months before expiry. Renewal is also at least six months before expiry.
• Order: one month for provisional approval, six months from the end of the quarter in other cases (section 354(2), (3), (4)).

What are the common mistakes?

• Filing the wrong form. Form 104 is only for provisional registration where activities have not commenced. If activities have started, it is treated as non est (rule 181(5)).
• Missing the six-month window after provisional registration. Case 3 requires an application within six months of commencing activities. Late filing without condonation brings section 352.
• Applying for renewal too late. The date is "at least six months prior" to expiry, not at expiry.
• Changing objects without applying. A modification that does not conform to the conditions of registration needs a Form 105 application within 30 days.
• Assuming the ten-year period is automatic. It needs total income of at most Rs 5 crore in each of the two preceding tax years, and it applies only to cases 3 to 7.
• Ignoring the trust deed. Eligibility requires an irrevocable trust for the general public. A deed that does not meet this can lead to rejection (see rule 181(12)(a)(iii)).

How do CA firms keep track of trust registrations across clients?

A CA firm with several trusts, societies and section 8 companies has a calendar of different dates for each: provisional expiry, renewal windows, the six-month deadline after commencement, and 30 days after any change in objects. Finexo's practice management software lets you track these client-wise deadlines and send reminders. It does not prepare or file the applications for you.

If your clients also receive donations, read our guide on donation deduction rates and limits under the Income Tax Act 2025, and our list of income exempt from tax.

Where is this in the Act?

• Section 332: application for registration, eligibility, time limits, validity, condonation, orders.
• Section 333: switching over of regimes.
• Section 352: tax on accreted income.
• Section 2(23): "charitable purpose".
• Section 354: approval for the donation deduction purpose (same forms under rule 181).
• Rule 181: common application for registration or approval; Forms 104, 105, 106, 107; surrender, withdrawal and re-application.

This article explains the Income-tax Act, 2025 (as amended by the Finance Act, 2026) and the Income-tax Rules, 2026. It is general information, not tax advice. Confirm the position for a specific case with a qualified chartered accountant.