The Ministry of Finance (MoF) on October 30, 2026, issued the Income-tax (Eighth Amendment) Rules, 2026, further to amend the Income-tax Rules, 2026.
They shall come into force on October 30, 2026.
The following has been stated:
• The amendment inserts Rule 189A, prescribing conditions for the merger of registered non-profit organisations having the same or similar objects under Section 352(4) of the Act. Registered and provisionally registered organisations cannot merge. The merger shall comply with specified conditions relating to outstanding tax demands, transfer of assets and liabilities, prohibition on amendments to the merged organisation’s objects for five years, prevention of benefits to related persons, and continuation of tax and other statutory obligations. The merged organisation shall intimate the jurisdictional Principal Commissioner or Commissioner in Form No. 112A within one month from the end of the month in which the merger takes effect.
• The rule also provides for the continuation of assessments and proceedings and requires both organisations to have their books of accounts audited as on the merger date. Form No. 112A shall be filed electronically using a digital signature or electronic verification code, along with supporting documents, including trust deeds, registration certificates, merger resolution, audited accounts and reasons for the merger.
[Notification No. - G.S.R. 961(E)]
