CBDT Notifies New Rules for Merger of Registered Non-Profit Organisations Under Income Tax Rules 2026:

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has notified new rules for the merger of registered non-profit organisations for the purposes of sections 352(4) and 354A in the existing Income Tax Rules 2026.

The revised rules will be called the Income-tax (Eighth Amendment) Rules, 2026. This amendment has been officially announced vide Notification No. G.S.R. 961(E), dated October 30, 2026, effective from the date of publication of the notification in the official gazette, i.e., October 30, 2026.

The merger of a registered non-profit organisation with any other registered non-profit organisation. The notification has also laid down certain conditions. Below are some of them:

"(a) the registered non-profit organisation registered under section 332 shall not be merged with the registered non-profit organisation provisionally registered under section 332;

(b) the registered non-profit organisation provisionally registered under section 332 shall not be merged with the registered non-profit organisation registered under section 332;

(c) there is no tax, interest, penalty, fine or any other sum (hereinafter referred to as the outstanding demand) payable in consequence of any order passed under the Act in respect of the merging registered non-profit organisation where such outstanding demand is not in appeal before any appellate authority;"

This entire rule on registered non-profit organisation merger has been added to the Income Tax Rules 2026, after Rule 189.

Refer to the official notification for complete information.