Chapter XVII - Special Provisions Relating to Certain Persons
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.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The following persons may, for claiming benefits under this Part as a registered non-profit organisation, make an application for registration in such form and manner, as may be prescribed, to the Principal Commissioner or Commissioner:— (a) a public trust; or (b) a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law in force in India; or (c) a company registered under section 8 of the Companies Act, 2013 (18 of 2013) or the companies registered under section 25 of the Companies Act, 1956 (1 of 1956) and deemed to have been registered in pursuance of section 465(2)(g) of the Companies Act, 2013 (18 of 2013); or(d) a University established by law or any other educational institution affiliated thereto or recognised by the Government; or (e) an institution financed wholly or in part by the Government or a local authority; or (f) any person as referred to in Schedule III (Table: Sl. No. 27) to (Table: Sl. No. 29) and (Table: Sl. No. 36) and in Schedule VII (Table: Sl. Nos. 17 to 19) and (Table: Sl. No. 42); or (g) any other person notified by the Board in this behalf.
(2) A person referred to in sub-section (1) shall be eligible for registration, if— (a) such person is constituted or registered or incorporated in India for carrying out one or more charitable purposes, as referred to in section 2(23) or one or more public religious purposes; and (b) the properties of such person are held for the benefit of the general public under an irrevocable trust— (i) wholly for charitable or religious purposes in India; or (ii) partly for charitable or religious purposes in India, if such person was constituted or registered or incorporated prior to the commencement of the Income-tax Act, 1961 (43 of 1961).
(3) Every application in respect of the cases specified in column B of the Table below shall be made to the Principal Commissioner or Commissioner within the time provided in column C of the said Table, who shall, on receipt of such application, follow the procedure provided in this section and shall pass an order within the time specified in column D of the said Table, and registration, if granted, shall be valid for a period specified in column E thereof.
| Sl. No. | Case | Time limit for furnishing application | Time limit for passing order | Validity of registration |
|---|---|---|---|---|
| 1 | Where the activities of the applicant have not commenced and it has not been registered under any specified provision at any time before making the application. | At any time during the tax year beginning from which registration is sought. | One month from the end of the month in which application is made. | Three tax years commencing from the tax year in which such application is made. |
| 2 | Where the activities of the applicant have commenced and it has not been registered under any specified provision at any time before making the application. | At any time during the tax year, beginning from which registration is sought. | Six months from the end of the quarter in which application is made. | Five tax years commencing from the tax year in which such application is made. |
| 3 | Where the applicant has been granted provisional registration and activities have commenced. | Within six months of the commencement of activities. | Six months from the end of the quarter in which application is made. | Five tax years commencing from the tax year in which such application is made. |
| 4 | Where the provisional registration of the applicant is due to expire and activities have not commenced. | At least six months prior to the expiry of the provisional registration. | Six months from the end of the quarter in which application is made. | Five tax years following the tax year in which such application is made. |
| 5 | Where the registration of the applicant is due to expire, other than cases mentioned at serial number 4. | At least six months prior to the expiry of the registration. | Six months from the end of the quarter in which application is made. | Five tax years following the tax year in which such application is made. |
| 6 | Where the registration of the applicant has become inoperative due to switching over of regime under section 333. | At any time during the tax year beginning from which the registration is sought to be made operative. | Six months from the end of the quarter in which application is made. | Five tax years commencing from the tax year in which such application is made. |
| 7 | Where the applicant, being a registered non-profit organisation, has adopted or undertaken modification of its objects which do not conform to the conditions of registration. | Within thirty days of the date of such adoption or modification | Six months from the end of the quarter in which application is made. | Five tax years commencing from commencement of the tax year in which such application is made. |
(4) In case the application under sub-section (3) is made beyond the time allowed in column C of the Table specified in the said sub-section, the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in furnishing the application, condone such delay and such application shall be deemed to have been made within time.
(5) In case the application is made under sub-section (3) (Table: Sl. Nos. 3 to 7), and the total income of such applicant, without giving effect to the provisions of this Part, does not exceed five crore rupees during each of the two tax years, preceding the tax year in which such application is made, the provisions of (Table: Sl. Nos. 3.E to 7.E) of the said sub-section, shall have effect as if for the words “five years”, the words “ten years” had been substituted.
(6) If any application for registration is not made within the time specified in sub-section (3) (Table: Sl. No. 3.C, 4.C, 5.C or 7.C) and the delay in filing such application is not condoned under sub-section (4), such person shall be liable to pay tax on accreted income under section 352.
(7) The Principal Commissioner or Commissioner shall, on an application made by an applicant in any of the cases specified in sub-section (3) (Table: Sl. Nos. 2 to 7), call for such documents or information or make such inquiries as he thinks necessary in order to satisfy himself about the genuineness of activities, and the compliance of such requirements of any other law as are material for the purpose of achieving its objects, and— (a) if he is so satisfied about the objects and the genuineness of the activities and compliance of such requirements of any other law in force, shall pass an order in writing granting registration; or (b) if he is not so satisfied, after affording a reasonable opportunity of being heard to the applicant shall,— (i) pass an order in writing rejecting the application, where the application was made in any of the cases specified in sub-section (3) (Table: Sl. No. 2 or 6); or (ii) pass an order in writing rejecting the application and also cancelling the registration in any other case specified in sub-section (3) (Table: Sl. No. 3, 4, 5 or 7), and send a copy of the said order to the applicant and the Assessing Officer.
(8) Where an application has been made in any of the cases specified in sub-section (3) (Table: Sl. No. 1), the Principal Commissioner or Commissioner shall grant provisional registration.
(9) Where the registration of a person, granted prior to the 1st April, 2021 under the specified provision of the Income-tax Act, 1961 (43 of 1961), has expired and such person makes an application for registration under this Part, the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in making such application, condone such delay and grant registration to such person under this Part within three months from the end of the month in which the application is made, which shall be valid for five years from the commencement of the tax year 2021-2022.
(10) The order under sub-sections (7), (8) and (9) shall be passed in the form and manner, as may be prescribed.
Introduction
Section 332 sets the registration route for non-profit organisations seeking the special tax treatment in this Part. It covers eligibility, application timing, decision process and continuing validity.
The Finance Act 2026 changes to registration and transition rules must be checked against the amended Act before relying on a deadline or status.
Key takeaways
NPO registration route
Specified non-profit organisations apply to the Principal Commissioner or Commissioner under the section’s cases and conditions.
Different deadlines and validity
The table sets application timing, order timing and registration duration by applicant category.
Late applications can have consequences
The section provides limited delay condonation and specifies when missing or refused registration affects tax treatment.
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 another educational institution affiliated to that University or recognised by the Government
- An institution financed wholly or in part by the Government or a local authority
- Persons referred to in Schedule III Table Sl. Nos.27–29 and36, and Schedule VII Table Sl. Nos.17–19 and42 (the current amended entries)
- 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
Subsection (4) applies where an application under subsection (3) is made beyond the column-C time limit. The Principal Commissioner or Commissioner may condone delay for reasonable cause, treating the application as made within time. The text does not restrict this power to Cases 3–7.
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.
Step-by-step flow for registration under Section 332
- 1
Is the applicant one of the persons in Section 332(1)?
For example a public trust, a registered society, a section 8 company, a university or recognised educational institution, an institution financed by Government or a local authority, a person in the listed Schedule III or Schedule VII entries, or a person notified by the Board.
- 2
Does it meet the eligibility test in Section 332(2)?
It must be constituted, registered or incorporated in India for charitable purposes under Section 2(23) or public religious purposes, and its properties must be held for the general public under an irrevocable trust wholly for charitable or religious purposes in India (or partly, if it was set up before the Income-tax Act, 1961 commenced).
- 3
Which case in the Section 332(3) Table applies, and was the application made in time?
The Table (Sl. Nos. 1 to 7) fixes the time to apply, the time for the order and the validity period. The form and manner of application are prescribed.
- In time, or delay condoned for reasonable cause under Section 332(4): Go to the next step.
- Late and not condoned in a case at Sl. No. 3, 4, 5 or 7: Under Section 332(6), the person is liable to tax on accreted income under Section 352.
- 4
How does the Principal Commissioner or Commissioner decide?
For Sl. No. 1, provisional registration is granted (Section 332(8)). For Sl. Nos. 2 to 7, the authority may call for documents and make inquiries on genuineness of activities and compliance with other material laws, then grants registration or, after a hearing, rejects it; for Sl. Nos. 3, 4, 5 and 7 rejection also cancels the registration (Section 332(7)).
- 5
What is the validity period?
Column E of the Table gives the period (three tax years for Sl. No. 1, five tax years for the others). Under Section 332(5), for Sl. Nos. 3 to 7, if total income (without giving effect to this Part) did not exceed five crore rupees in each of the two preceding tax years, ten years apply instead of five.
Practical checklist
Do
- Identify the organisation’s registration category and the correct application window.
- Keep the application acknowledgment, order and effective tax years.
- Track any notice seeking documents or clarification from the registering authority.
Avoid
- Assume a pending application grants every benefit automatically.
Illustrative example
Worked example: from provisional to regular registration
Hypothetical facts (illustration only, not a real taxpayer): A public charitable trust is formed in India in May 2026 to run free coaching for students. Its property is held under an irrevocable trust wholly for charitable purposes in India. It applies for registration on 10 June 2026, before starting any activity. Activities start on 1 September 2027, and it files its next application in December 2027.
Eligibility
A public trust is covered by Section 332(1)(a), and it meets Section 332(2): it is set up in India for a charitable purpose and its property is held wholly for charitable purposes in India.
First application (Sl. No. 1)
Activities had not commenced and it was never registered, so Sl. No. 1 applies. The order is due within one month from the end of June 2026, i.e. by 31 July 2026, and provisional registration is granted under Section 332(8). It is valid for three tax years commencing from the tax year beginning 1 April 2026.
Second application (Sl. No. 3)
After activities commence, it must apply within six months of 1 September 2027. A December 2027 application is within that time. The quarter of application ends on 31 December 2027, so the order is due within six months from then, i.e. by 30 June 2028.
Validity
If granted, registration under Sl. No. 3 is valid for five tax years commencing from the tax year in which the application is made (the tax year beginning 1 April 2027). The trust should check whether Section 332(5) allows ten years based on its income in the two preceding tax years.
Risk of missing the window
If it had missed the Sl. No. 3 time limit and the delay was not condoned under Section 332(4), Section 332(6) would make it liable to tax on accreted income under Section 352.
Outcome
- Provisional registration (three tax years) first, then registration under Sl. No. 3 (five tax years, or ten if Section 332(5) applies).
- The application form, manner and the form of the order are prescribed under Section 332(1) and (10); they are not stated in the section.
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?
Case 1 provides three tax years. Cases 2–7 normally provide five tax years, with different starting points: rows 1–3,6 and 7 commence with the application tax year, while rows 4 and 5 follow it. Only Cases 3–7 receive the subsection (5) substitution of ten years where income, computed without this Part, does not exceed ₹5 crore in each of the two preceding tax years. Case 2 does not receive that extension under subsection (5).
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.
Need help applying this provision to your situation?
Get help registering your non-profit organisationLast updated 10 October 2026