Income Tax Authority Structure for NGOs, Charitable Trusts, Societies and Section 8 Companies
The income-tax framework for non-profit organisations changed from 1 April 2026. For Tax Year 2026-27 and later tax years, the Income-tax Act, 2025 and Income-tax Rules, 2026 govern current compliance. The Income-tax Act, 1961 continues to matter for earlier periods and for transitional rights, registrations and proceedings preserved by the new law.
Broad Income-tax Authority Structure
The exact officer having jurisdiction depends on the statutory function, the taxpayer's assigned jurisdiction, and orders or directions issued under the tax law. For an NGO, charitable trust, society or Section 8 company, it is therefore more accurate to identify the competent authority for the particular proceeding than to rely on an old city-based exemption-directorate list.
| Level / authority | Typical role relevant to an NPO |
|---|---|
| Central Government | Legislative and executive framework for direct taxation. |
| Central Board of Direct Taxes (CBDT) | Administration of direct-tax law, rules, notifications, circulars, instructions and jurisdictional arrangements within its statutory powers. |
| Principal Chief Commissioner / Chief Commissioner | Senior field or functional administration and powers assigned by the Act or departmental orders. |
| Principal Commissioner / Commissioner | Important statutory functions for NPO registration, approval, cancellation/withdrawal, delay condonation where provided, inquiry and other assigned functions. |
| Additional / Joint Commissioner and corresponding Directorates | Administrative, supervisory, inquiry and statutory functions assigned under the Act. |
| Deputy / Assistant Commissioner, Income-tax Officer and Assessing Officer | Assessment, verification, inquiry and other proceedings within assigned jurisdiction. |
| Commissioner (Appeals) / Joint Commissioner (Appeals), where applicable | First appellate functions for appealable orders assigned by law. |
| Income Tax Appellate Tribunal (ITAT) | Statutory appellate tribunal for matters appealable to it. |
| High Court and Supreme Court | Judicial appellate jurisdiction subject to the statutory requirements governing the particular matter. |
Central Board of Direct Taxes (CBDT)
The CBDT functions under the Department of Revenue, Ministry of Finance, Government of India. It is the apex administrative body for direct taxes and exercises the powers given to it by tax legislation. Its functions include issuing statutory and administrative directions and arranging jurisdiction among income-tax authorities.
Current jurisdiction may be functional, territorial or technology-enabled. Accordingly, a taxpayer should use the current Income Tax Department systems and the notice/order received in the particular proceeding to identify the correct authority.
Principal Commissioner or Commissioner of Income-tax
The Principal Commissioner of Income-tax (PCIT) or Commissioner of Income-tax (CIT) remains central to the NPO registration and approval framework. Under the Income-tax Act, 2025, applications under sections 332 and 354 are made to the Principal Commissioner or Commissioner in the prescribed form and manner.
Depending on the application and statutory stage, the competent authority may examine the organisation's constitutional documents, objects, genuineness of activities, compliance with applicable law, financial information, assets and liabilities, religious expenditure where relevant, existing registrations or approvals, and other prescribed particulars.
Registration of Non-Profit Organisations under Section 332
For current tax years governed by the Income-tax Act, 2025, section 332 provides the registration framework for specified non-profit organisations. The prescribed categories include public trusts, societies registered under the Societies Registration Act or corresponding law, and companies registered under section 8 of the Companies Act, 2013, among other eligible persons specified in the provision.
Regular registration may be granted for the period applicable under the Act and Rules. The current forms expressly provide for five-year or ten-year registration, as applicable. The eligibility for a longer period must be checked against the statutory conditions; it should not be assumed that every organisation automatically receives ten-year registration.
Approval for Donor Deduction under Section 354
Section 354 of the Income-tax Act, 2025 deals with approval for the donor-deduction framework referred to in section 133(1)(b)(ii). This is conceptually separate from the NPO's own registration under section 332, although the two applications can be connected and the current electronic form allows the applicant to select section 332, section 354, or both, as applicable.
Among other statutory conditions, the organisation must satisfy the requirements governing charitable purpose, accounts and permitted religious expenditure, and must meet donation-reporting and donor-certificate obligations prescribed under the 2025 Act and 2026 Rules.
Donation statements and certificates
For the current framework, approved organisations use Form 113 for the prescribed statement of donations under section 354(1), and Form 114 is the corresponding donation certificate generated for the donor after filing and processing of the statement.
Current Registration and Approval Forms
| Form | Purpose under current framework |
|---|---|
| Form 104 | Application for provisional registration or provisional approval under section 332 or section 354. |
| Form 106 | Departmental order / confirmation following provisional registration or approval, with the prescribed registration details. |
| Form 105 | Application for regular registration of an NPO under section 332, approval under section 354, or both, as applicable. |
| Form 107 | Order on the regular registration / approval application filed in Form 105. |
| Form 113 | Statement or correction statement of donations under section 354(1). |
| Form 114 | Certificate of donation under section 354(1)(g), corresponding to the earlier donation-certificate function. |
Role of the Assessing Officer
Registration or approval does not place an NPO outside the assessment system. The Assessing Officer may examine the return of income, books and records, application or accumulation of income, donations, audit requirements, related-party or specified-person issues, statutory conditions attached to exemption, and other matters relevant to computation and assessment.
The Income-tax Act, 2025 also preserves a broader hierarchy of authorities with inquiry powers. The precise officer dealing with a matter depends on statutory competence and the jurisdiction assigned to that officer.
Appeals and Further Remedies
An adverse order can be challenged only through the appellate or other remedy provided for that type of order. Depending on the provision involved, the route may include the Commissioner (Appeals) or Joint Commissioner (Appeals), the Income Tax Appellate Tribunal, the High Court on questions permitted by statute, and the Supreme Court.
Because registration, approval, assessment and cancellation/withdrawal orders can be governed by different provisions, the appeal provision stated in the order and the applicable Act for the relevant tax year should be checked before filing an appeal.
Transition from the Income-tax Act, 1961
Therefore, references such as sections 11, 12, 12A, 12AB and 80G, and Forms 10A, 10AB, 10BD and 10BE, remain relevant when dealing with periods, filings, orders or registrations governed by the 1961 Act. For fresh applications filed on or after 1 April 2026, the current forms and provisions under the Income-tax Act, 2025 should be used.
The Department has expressly stated that a charitable organisation applying for provisional registration after 1 April 2026 should use Form 104, which corresponds to the earlier Form 10A. The current Form 105 performs the regular-registration/approval function corresponding broadly to the earlier Form 10AB framework.
Earlier Section 12AB registration
For periods governed by the Income-tax Act, 1961, section 12AB governed registration of charitable or religious trusts and institutions claiming exemption under sections 11 and 12. The 1961 Act framework also distinguished the organisation's exemption registration from section 80G approval for donor deductions.
The Finance Act, 2025 had extended registration validity to ten years for qualifying smaller trusts or institutions whose total income before exemption did not exceed ₹5 crore in each of the two previous years preceding the year of application, subject to statutory conditions and exclusions. That legacy rule remains relevant when examining registrations granted under the 1961 Act.
Earlier Section 10(23C) institutions
The Finance (No. 2) Act, 2024 had already moved specified approval-based institutions under section 10(23C)(iv), (v), (vi) and (via) toward the registration-based framework, subject to transition rules. Current compliance should now be tested under the Income-tax Act, 2025 where that Act applies.
Section 8 Companies and the Older "Section 25 Company" Expression
The older expression "Section 25 company" refers to the corresponding non-profit company form under the Companies Act, 1956. Under the Companies Act, 2013, the current expression is Section 8 company.
Incorporation under section 8 of the Companies Act does not automatically exempt the company's income from income tax. Where the company seeks tax treatment available to an eligible non-profit organisation, it must independently satisfy the applicable provisions of the Income-tax Act and Rules.
Other Laws May Also Apply
An NGO can have regulatory obligations outside income tax. Depending on its legal form and activities, these may arise under the Companies Act, applicable trust or societies law, the Foreign Contribution (Regulation) Act, GST law, labour laws and other sector-specific legislation. Those regulators are separate from the Income Tax Department.
Official Income Tax Resources
The following current government resources are useful for verifying the operative Act, forms and NPO procedures. These are reference links within the article, not website navigation items.
Present Position in Brief
- For Tax Year 2026-27 onward, current NPO compliance is governed by the Income-tax Act, 2025 and Income-tax Rules, 2026.
- Registration of eligible non-profit organisations is dealt with under section 332.
- Approval connected with qualifying donor deductions is dealt with under section 354.
- Form 104 is used for provisional registration/approval and Form 105 for regular registration/approval.
- Form 113 and Form 114 govern current donation reporting and donor certification under the new framework.
- The PCIT/CIT is a key statutory authority for registration and approval applications.
- The Assessing Officer continues to perform assessment and related functions within assigned jurisdiction.
- A Section 8 company does not receive automatic income-tax exemption by reason of incorporation alone.
- The Income-tax Act, 1961 remains relevant for earlier periods and preserved transitional matters.
- The old seven-city Directorate of Exemptions description should not be treated as the complete current jurisdictional structure.
Conclusion
The authority structure for charitable trusts, societies, NGOs and Section 8 companies should now be understood through the Income-tax Act, 2025, the Income-tax Rules, 2026 and the jurisdiction assigned by the Income Tax Department. For current NPO registration and donor-related approval, sections 332 and 354 and Forms 104/105 are the principal starting points.
For an older assessment year, legacy registration, pending proceeding or transitional question, the corresponding provisions of the Income-tax Act, 1961 and the saving provisions of the 2025 Act must also be examined.
Disclaimer: This article is for general information. The competent authority, form, registration period, approval requirement and appellate remedy depend on the organisation's facts, legal status, tax year and the particular statutory proceeding.