Tax & Compliance Updates — 3 November 2026

2 updates today: 1 Income Tax, 1 FEMA & RBI. The most important is RBI’s amendment to the export and import of services regulations, which eases EDF and IDPMS reporting for smaller service transactions and applies from 1 October 2026.

In this update

• Rule 189A and Form 112A: merger of registered non-profit organisations
• FEMA export and import of services: deemed EDF and IDPMS changes

Income Tax

Rule 189A and Form 112A: merger of registered non-profit organisations

CBDT issued Notification No. 139/2026 dated 30 October 2026 (G.S.R. 961(E)), notifying the Income-tax (Eighth Amendment) Rules, 2026, which come into force on the date of their publication in the Official Gazette. The new Rule 189A sets the conditions for a registered non-profit organisation to merge with another registered non-profit organisation having the same or similar objects, for the purposes of sections 352(4) [Table: Sl. No. 8] and 354A of the Income-tax Act, 2025. Among them: an organisation registered under section 332 cannot merge with one provisionally registered (or vice versa), the objects of the merged organisation cannot be amended for five years from the end of the financial year of the merger, and both organisations must get their books audited as on the date of merger. The merged organisation must intimate the jurisdictional Principal Commissioner or Commissioner in the new Form No. 112A, filed electronically, within one month from the end of the month in which the merger comes into effect.

Action: Trusts, societies and section 8 companies planning a merger should check the Rule 189A conditions and the Form 112A timeline before the merger takes effect.

Official source: CBDT Notification No. 139/2026 dated 30 October 2026 (Income-tax (Eighth Amendment) Rules, 2026)

FEMA & RBI

FEMA export and import of services: deemed EDF and IDPMS changes

RBI issued Notification No. FEMA 23(R)/(2)/2026-RB dated 2 November 2026, the Foreign Exchange Management (Export and Import of Goods and Services) (Second Amendment) Regulations, 2026, published in the Official Gazette on 2 November 2026 and in force from 1 October 2026. An exporter of services is now deemed to have submitted the EDF when it provides the information on the receipt of payment to its Authorised Dealer bank for crediting its account: for a resident individual, regardless of value; for any other exporter, where the inward remittance for the service is not more than ₹10 Lakh (or its equivalent in foreign currency). For imports of services, the AD bank now enters details in IDPMS only where the importer is a person other than a resident individual and the invoice or contract value is more than ₹10 Lakh. The amendment also inserts a definition of “resident individual”.

Action: Service exporters and importers, including freelancers and consultants, should check with their AD bank how these thresholds apply to their EDF and IDPMS reporting from 1 October 2026.

Official source: RBI Notification No. FEMA 23(R)/(2)/2026-RB dated 2 November 2026

For help with FEMA reporting, see our FEMA advisory services.

All daily digests · Topic pages: Income tax news · FEMA and RBI updates

Compiled from official sources linked above. Last updated 4 November 2026. This is general information, not advice on any particular case.