Section 332
Section 332: application for registration as a non-profit organisation
Section 332 opens Part B of Chapter XVII, which deals with the special tax regime for registered non-profit organisations (trusts, societies, Section 8 companies, educational and other institutions carrying out charitable or religious purposes). This section sets out who can apply for registration, when the eligibility conditions are met, and the detailed timelines and validity periods that apply to different categories of applicants.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Who can apply for registration
Sub-section (1) lists the persons who may apply to the Principal Commissioner or Commissioner, in the prescribed form and manner, for registration as a registered non-profit organisation:
- A public trust
- A society registered under the Societies Registration Act, 1860, or any similar law in force in India
- A company registered under Section 8 of the Companies Act, 2013, or one registered under Section 25 of the Companies Act, 1956 and deemed registered under Section 465(2)(g) of the Companies Act, 2013
- A University established by law, or any other educational institution affiliated to or recognised by the Government
- An institution financed wholly or in part by the Government or a local authority
- Any person referred to in specified Table entries of Schedule III and Schedule VII of the Act
- Any other person notified by the Board
Eligibility conditions
Sub-section (2): a person listed above is eligible for registration only if -
- the person is constituted, registered or incorporated in India for one or more charitable purposes (as defined in Section 2(23)) or one or more public religious purposes, and
- the person's properties are held for the benefit of the general public under an irrevocable trust, either wholly for charitable or religious purposes in India, or partly for such purposes in India where the person was constituted, registered or incorporated before the commencement of the Income-tax Act, 1961
Filing deadlines, order deadlines and validity of registration
Sub-section (3) sets out, in a detailed table, the time limit to file the registration application, the time limit for the Principal Commissioner or Commissioner to pass an order, and how long the registration is valid, depending on the applicant's situation:
| Case | When to apply | Time limit for the order | Validity of registration |
|---|---|---|---|
| 1. Activities not yet commenced, and not previously registered under any specified provision | Any time during the tax year from which registration is sought | 1 month from the end of the month in which the application is made | 3 tax years, commencing from the tax year of application |
| 2. Activities have commenced, and not previously registered under any specified provision | Any time during the tax year from which registration is sought | 6 months from the end of the quarter in which the application is made | 5 tax years, commencing from the tax year of application |
| 3. Applicant has provisional registration and activities have commenced | Within 6 months of commencement of activities | 6 months from the end of the quarter in which the application is made | 5 tax years, commencing from the tax year of application |
| 4. Provisional registration is due to expire, activities not yet commenced | At least 6 months before expiry of the provisional registration | 6 months from the end of the quarter in which the application is made | 5 tax years, following the tax year of application |
| 5. Registration is due to expire (other than Case 4) | At least 6 months before expiry of the registration | 6 months from the end of the quarter in which the application is made | 5 tax years, following the tax year of application |
| 6. Registration became inoperative due to switching over of regime under Section 333 | Any time during the tax year from which registration is sought to become operative | 6 months from the end of the quarter in which the application is made | 5 tax years, commencing from the tax year of application |
| 7. Registered non-profit organisation has adopted or modified objects that do not conform to the conditions of registration | Within 30 days of such adoption or modification | 6 months from the end of the quarter in which the application is made | 5 tax years, commencing from the tax year of application |
Condonation of delay, and the ten-year validity for smaller organisations
Sub-section (4): if an application under Cases 3 to 7 is made beyond the allowed time, the Principal Commissioner or Commissioner may condone the delay for reasonable cause, and the application is then treated as made within time.
Sub-section (5): for applications made under Cases 3 to 7, if the applicant's total income (computed without giving effect to this Part) did not exceed ₹5 crore in each of the two tax years preceding the year of application, the validity period of "five years" for those cases is read as "ten years" instead.
Consequences of a late or unsuccessful application
Sub-section (6): if an application under Cases 3, 4, 5 or 7 is not made within the prescribed time and the delay is not condoned under sub-section (4), the organisation becomes liable to pay tax on accreted income under Section 352.
Sub-section (7): for applications under Cases 2 to 7, the Principal Commissioner or Commissioner calls for documents, information or makes inquiries to be satisfied about the genuineness of the activities and compliance with other applicable laws. If satisfied, registration is granted in writing. If not satisfied, after giving the applicant a reasonable opportunity of being heard, the officer either rejects the application (Case 2 or 6) or rejects the application and cancels the registration (Cases 3, 4, 5 or 7), with a copy sent to the applicant and the Assessing Officer.
Sub-section (8): for a Case 1 application, the Principal Commissioner or Commissioner grants provisional registration.
Transitional registrations from the old Act
Sub-section (9): where a person's registration granted before 1 April 2021 under the corresponding provision of the Income-tax Act, 1961 has expired, and the person applies for registration under this Part, the Principal Commissioner or Commissioner may condone a delay for reasonable cause and grant registration within 3 months from the end of the month of application - valid for 5 years from the commencement of tax year 2021-22.
Sub-section (10): orders under sub-sections (7), (8) and (9) are to be passed in the prescribed form and manner.
Frequently asked questions
Who can apply for registration as a non-profit organisation under Section 332?
A public trust, a registered society, a Section 8 (or erstwhile Section 25) company, a university or recognised educational institution, an institution financed wholly or partly by government or a local authority, persons listed in specified entries of Schedule III/Schedule VII, or any other person notified by the Board.
How long is a Section 332 registration valid?
It depends on the case: 3 tax years for a first-time applicant whose activities haven't commenced, and 5 tax years (extended to 10 tax years for organisations with total income of up to ₹5 crore in the preceding two years) in most other cases such as renewal or where activities have already commenced.
What happens if I miss the deadline to apply for registration?
The Principal Commissioner or Commissioner may condone the delay for reasonable cause under sub-section (4). If the delay in certain cases (3, 4, 5 or 7) is not condoned, the organisation becomes liable to pay tax on accreted income under Section 352.
Related sections
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Get help registering your non-profit organisationLast updated 9 September 2026