Non-profit mergers: CBDT prescribes conditions and Form 112A

CBDT Notification 139/2026, G.S.R. 961(E), dated 30 October 2026 introduces Rule 189A and Form 112A. The rules commence on publication in the Official Gazette.

The framework concerns mergers of registered non-profit organisations with the same or similar objects. A regularly registered organisation cannot merge with a provisionally registered organisation, or vice versa. Unappealed outstanding demands must not remain; demands under appeal pass to the surviving organisation for payment when the appeal becomes final.

All assets, liabilities and continuing tax obligations transfer to the surviving organisation. The merger must not benefit related persons. Objects cannot be amended for five years from the end of the merger financial year. Both organisations require audited books as at the merger date.

The surviving organisation must electronically submit Form 112A, using digital signature or electronic verification code, within one month after the end of the month in which the merger takes effect.

Prepare trust deeds, registration documents, the merger resolution, reasons for merger, and audited books at merger and for the prescribed preceding year. Check the complete continuing income-application, investment and tax conditions before proceeding.