CBDT introduces Rule 189A under the Income-tax Rules, 2026, prescribing merger conditions, compliance requirements and Form 112A filing for registered non-profit organisations.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 30th October, 2026
INCOME-TAX
The Central Board of Direct Taxes (CBDT), through Notification No. 139/2026 dated 30 October 2026, has issued the Income-tax (Eighth Amendment) Rules, 2026, introducing Rule 189A under the Income-tax Rules, 2026. The new rule specifies conditions governing the merger of registered non-profit organisations having the same or similar objectives under Sections 352(4) and 354A of the Income-tax Act, 2025.
The amendment requires both organisations to comply with specified registration, tax liability, asset and liability transfer, and continuity requirements. It also restricts changes to the objectives of the merged organisation for five years and requires the merged entity to fulfil the applicable obligations relating to income application, accumulated income, investments and additional income-tax.
Further, the merged organisation must intimate the jurisdictional Principal Commissioner or Commissioner through Form No. 112A within one month from the end of the month in which the merger takes effect. The form must be submitted electronically using a digital signature or Electronic Verification Code (EVC). Both organisations are also required to get their books of accounts audited as on the merger date.
The notification came into force from the date of its publication in the Official Gazette.
Source: CA Sansaar