Registration under section 332 as per the Income Tax Act, 2025 formally under section 12A & section 80G as per the Income Tax Act, 1962 is made by a Public Trust, Registered Societies, Section 8 Companies, Established University, any other Educational Institution, Medical Institution, Government Aided Institution, Religious Institution and others as notified by Board. As per the Income Tax Act, 2025 entities registered under section 332 can claim tax exemptions.
It is important to understand that to obtain registration under section 332 of the Income Tax Act, 2025 the applicant must satisfy the following conditions to fulfill the eligibility criteria:
Registration under section 332 is generally of 3 types Provisional Registration, Regular Registration and Registration for Small Organisation.
Organisation whose activities have not commenced yet and proposes to register as non-profit organisation compulsory to get registered under section 332 to claim the benefits of exemption. The provisional registration is valid for three years starting from the year in which application was made by the applicant.
Organisation whose activities have already commenced and now wants to renew their registration on expiry or converting from provisional to regular registration compulsory to get registered under section 332 to claim the benefits of exemption. The regular registration is valid for five years starting from the year in which application for regular registration was made by the applicant.
Organisation whose last two year Turnover from the tax period for which applicant wants to make an application without giving effect of any exemptions is less than Five Crore then instead of five years, the registration will be valid for “ten years”. This relaxation is given to reduce compliance burden and only applicable in the case of renewal of registration or conversion of registration from provisional to regular registration.
In order to claim exemption on income from non-profit organisation the applicant needs to register under section 332 by filing an applicable form of the Income Tax Act, 2025. Form 104 or 105 is required to file to claim exemption & must be filed electronically on the Income Tax e-filing.
This form is used to apply for Provisional Registration and is applicable when the organisation is in the process to commence the activities.
This form is used to apply for Regular Registration — applicable when the organisation has already commenced the activities or renewing registration or transferring from provisional to regular registration.
| Sl. No. | Case | Deadline to File Application | Processing Time Limit for Order | Validity of Registration |
|---|---|---|---|---|
| 1. | Activities not yet commenced & never registered before (Provisional registration) | At any time during the tax year from which registration is sought | Within 1 month from the end of month when application is made | For 3 tax years |
| 2. | Activities already commenced but never registered before (Regular registration) | At any time during the tax year from which registration is sought | Within 6 months from the end of the quarter application is received | For 5 tax years |
| 3. | Provisional registration granted and activities have now commenced | Within 6 months of the commencement of activities | Within 6 months from the end of the quarter application is received | For 5 tax years (or 10 years if under ₹5 Crore turnover) |
| 4. | Provisional registration due to expire but activities have not commenced | At least 6 months prior to the expiry of provisional registration | 6 months from the end of the quarter application is received | 5 tax years (or 10 years if under ₹5 Crore turnover) |
| 5. | Regular registration due to expire (Renewal) | At least 6 months prior to the expiry of current registration | Within 6 months from the end of the quarter application is received | 5 tax years (or 10 years if under ₹5 Crore turnover) |
| 6. | Registration became inoperative due to switching regimes (u/s 333) | Any time during the tax year from which it is to be made operative | 6 months from the end of the quarter application is received | 5 tax years (or 10 years if under ₹5 Crore turnover) |
| 7. | Registered NPO modified/altered its objects to non-conforming conditions | Within 30 days of adopting the modification | 6 months from the end of the quarter application is received | 5 tax years (or 10 years if under ₹5 Crore turnover) |
After filing an application for registration under section 332 the GST Department will either approve or reject the application of the applicant. Generally for new or unstarted entities the commissioner grants provisional registration without detailed enquiries.
However, for existing or active entities the commissioner does detailed enquiries, such as scrutinizing all documents, asking for any information, and also verifies the genuineness of the activities undertaken by entities. If he is satisfied with the process he grants registration in writing and if he is not satisfied then he must give the applicant an opportunity of being heard before rejecting the application.
As per section 334 if a non-profit organisation is required to pay tax on its income then there is dual system for tax calculation:
As per Section 347 if the total income of the non-profit organisation before giving effect of any exemption under the provision exceeds the basic tax free limit is required to keep & maintain the books of accounts and other documents in the form and manner prescribed under the Law.
As per section 348 if total income of the non-profit organisation before giving effect of any exemption under the provision exceeds the basic tax free limit then the accounts of non-profit organisation are compulsorily required to be audited by the qualified professional accountant.
As per section 349 if total income of the non-profit organisation before giving effect of any exemption under the provision exceeds the basic tax free limit then non-profit organisations are required to file an income tax within the prescribed time limit.
Under section 133 of the Income Tax Act, 2025 the taxpayer on donation to certain funds, charitable institutions and other non-profit organizations would claim deduction from his gross total income. Donation under the section is allowed 50% or 100% of the donation amount made on the basis of categorization of Fund under the provision.
| Category | Examples |
|---|---|
| 100% Deduction | National Defence Fund, Prime Minister's National Relief Fund, PM Cares Fund, National Children's Fund, Zila Saksharta Samati, Swachh Bharat Kosh, Clean Ganga Fund, etc. |
| 50% Deduction | Prime Minister's Drought Relief Fund, Donation to approved registered NGOs, Renovation or repair of notified historical places. |
Important Points to be kept in mind for claiming deduction under section 133 of the Income Tax Act, 2025:
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Private Limited Company Registration
Section 332 registration under the Income Tax Act, 2025 allows NGOs, trusts, societies, and Section 8 companies to get tax exemption benefits for charitable and religious activities.
Public trusts, registered societies, Section 8 companies, educational institutions, medical institutions, and religious or charitable organizations can apply for Section 332 registration.
There are three types:
Form 104 is used for provisional registration, and Form 105 is used for regular or renewal registration under Section 332.
Provisional registration is valid for 3 years, while regular registration is valid for 5 years. Small organisations may get validity up to 10 years.
Yes, if an organisation’s turnover is less than ₹5 crore, it may get registration validity up to 10 years under Section 332 rules.
If renewal is delayed and not condoned, the organisation may become liable to pay tax on accreted income.
No. Audit is required only when total income exceeds the basic exemption limit as per Section 348 of the Income Tax Act, 2025.
Yes, donors can claim 50% or 100% deduction under Section 133 for eligible donations made to approved funds and NGOs.
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