{"id":91019,"date":"2026-11-11T11:12:21","date_gmt":"2026-11-11T05:42:21","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/npo-merger-rule-189a-form-112a\/"},"modified":"2026-11-11T11:12:21","modified_gmt":"2026-11-11T05:42:21","slug":"npo-merger-rule-189a-form-112a","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/npo-merger-rule-189a-form-112a\/","title":{"rendered":"NPO Mergers: Rule 189A and Form 112A Now Notified Under the Income-tax Act, 2025"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>CBDT has notified the conditions under which one registered non-profit organisation can merge with another having the same or similar objects without losing its tax position, in force from the date of publication of Notification No. 139\/2026 dated 30 October 2026.<\/strong> The Income-tax (Eighth Amendment) Rules, 2026 insert a new Rule 189A in the Income-tax Rules, 2026 and a new Form No. 112A, which the merged organisation must file with its jurisdictional Principal Commissioner or Commissioner within one month from the end of the month in which the merger takes effect.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What changed<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rule 189A is made for the purposes of sections 352(4) [Table: Sl. No. 8] and 354A of the Income-tax Act, 2025. It lists the conditions a merger of registered non-profit organisations must meet. The main ones are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Same type of registration.<\/strong> An organisation registered under section 332 cannot merge with one that is only provisionally registered under section 332, and the reverse is also not allowed.<\/li><li><strong>No outstanding demand.<\/strong> There must be no tax, interest, penalty, fine or other sum payable by the merging organisation under an order that is not in appeal. Where an appeal is pending, the merged organisation pays the demand once the appeal attains finality.<\/li><li><strong>Objects locked for five years.<\/strong> The objects of the merged organisation cannot be amended within five years from the end of the financial year in which the merger takes place.<\/li><li><strong>Everything moves across.<\/strong> All assets, liabilities and obligations of the merging organisation become those of the merged organisation from the date of merger, including application of income and accumulated income, tax on specified income, the section 340 conditions, the permitted investment modes under section 350 and any additional income-tax under section 352.<\/li><li><strong>No benefit to related persons.<\/strong> The merger must not give any direct or indirect benefit to a related person referred to in section 337(1) of either organisation.<\/li><li><strong>Audit on the merger date.<\/strong> Both organisations must get their books of account audited by an accountant as on the date of merger.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Who it affects<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Charitable and religious trusts, societies and Section 8 companies registered under the Income-tax Act, 2025 that plan to combine with another organisation working on the same or similar objects.<\/li><li>Organisations holding only provisional registration, which cannot merge with a fully registered one.<\/li><li>Trustees, governing bodies and auditors who will have to sign the resolution, the audit and the Form 112A undertakings.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How Form 112A works<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Form 112A is an intimation, filed electronically under a digital signature or electronic verification code. Part A carries the details of the merging organisation, including its PAN and the date of merger, and Part B the details of the merged organisation. The following must be attached:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Annexure<\/th><th>What to attach<\/th><\/tr><\/thead><tbody><tr><td>A-1<\/td><td>Trust deeds of both organisations<\/td><\/tr><tr><td>A-2<\/td><td>Registration granted to both organisations<\/td><\/tr><tr><td>A-3<\/td><td>Resolution of the trustees, governing body or management approving the merger<\/td><\/tr><tr><td>A-4<\/td><td>Audited books of both organisations as on the date of merger and for the financial year before the tax year of the merger<\/td><\/tr><tr><td>A-5<\/td><td>Reasons for the merger<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The declaration also contains undertakings: for example, the merged organisation will not claim depreciation on an asset whose cost the merging organisation already claimed as application, and contributions made to the merging organisation will count towards the total contribution to the merged organisation for section 355(h)(ii).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key dates, worked out<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Event<\/th><th>Date<\/th><\/tr><\/thead><tbody><tr><td>Notification No. 139\/2026 (G.S.R. 961(E))<\/td><td>30 October 2026, in force from its publication in the Gazette<\/td><\/tr><tr><td>Example: merger takes effect on any date in November 2026<\/td><td>Form 112A due within one month from 30 November 2026, that is by 30 December 2026<\/td><\/tr><tr><td>Example: merger in FY 2026-27 (ends 31 March 2027)<\/td><td>Objects cannot be amended until 31 March 2032<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What it does not change<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Rule 189A sets the income-tax conditions only. The merger itself must still be valid under the trust deed, society law or company law that governs each organisation.<\/li><li>Pending assessments do not disappear. Proceedings against the merging organisation are treated as proceedings against the merged organisation, and assessments up to the date of merger are made on the merged organisation.<\/li><li>The merged organisation keeps all its own compliance, including its annual audit and return.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What to do now<\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Check both registrations.<\/strong> Confirm that both organisations hold the same kind of registration under section 332, regular or provisional, and that their objects are the same or similar.<\/li><li><strong>Clear or document demands.<\/strong> Pay any demand that is not in appeal before the merger, and list the demands under appeal that the merged organisation will carry.<\/li><li><strong>Plan the audit and the resolution.<\/strong> Arrange the audit of both sets of books as on the merger date and pass a clear board or trustee resolution.<\/li><li><strong>Diarise the Form 112A deadline<\/strong> from the month in which the merger takes effect, and do not plan any change in objects for five years after the end of that financial year.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Planning an NPO merger?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">TAXAJ advises trusts, societies and Section 8 companies on <a href=\"https:\/\/www.taxaj.com\/section-12a-80g\" target=\"_blank\" rel=\"noopener\">12A and 80G registration<\/a> and ongoing tax compliance. Our guide to <a href=\"https:\/\/www.taxaj.com\/learn\/80g-12a-registration-ngo-india\/\" target=\"_blank\" rel=\"noopener\">80G and 12A registration for NGOs<\/a> covers the registration side, and the <a href=\"https:\/\/www.taxaj.com\/learn\/ngo-and-trust-audit-for-fy-2025-26-form-10b-vs-10bb-applicability-deco\/\" target=\"_blank\" rel=\"noopener\">NGO and trust audit guide<\/a> covers the audit. For other updates, see our <a href=\"https:\/\/www.taxaj.com\/income-tax-news\" target=\"_blank\" rel=\"noopener\">income tax news<\/a> page.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/bookings.taxaj.com\/\" target=\"_blank\" rel=\"noopener\">Talk to our tax team<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-small-font-size wp-block-paragraph\"><em>Source: CBDT <a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/sites\/default\/files\/2026-10\/Notification-No-139-2026.pdf\" target=\"_blank\" rel=\"noopener\">Notification No. 139\/2026 dated 30 October 2026<\/a> (G.S.R. 961(E)), Income-tax (Eighth Amendment) Rules, 2026. Last updated 11 November 2026. This is general information, not advice on any particular case.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBDT Notification 139\/2026 inserts Rule 189A and Form 112A: conditions for merging registered non-profit organisations, and a one-month window to intimate the Commissioner.<\/p>\n","protected":false},"author":1,"featured_media":91018,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[5,13],"tags":[],"class_list":["post-91019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","category-news-updates"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/91019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=91019"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/91019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media\/91018"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=91019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=91019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=91019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}