Rule 181: NPO registration and donation-approval applications
Rule 181 provides a common application procedure for registration under section 332 and approval under section 354. The provisional and other application routes use different forms and authorities. It also regulates verification, orders, surrender, withdrawal, limited re-application and correction requests.
Official notified Income-tax Rules, 2026Need advice on Rule 181?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
- Bare law
- Choose the correct form and authority
- Check whether Form 104 is available
- Prepare documents and electronic verification
- Understand orders and the registration number
- Keep cancellation and surrender conditions distinct
- Withdrawal and correction have different time limits
- Use the limited re-application route only if all conditions fit
- Maintain an application and order checklist
- Key takeaways
- Practical checklist
- FAQs
- Glossary
- Official sources
Bare law
Rule 181 - Common application for registration of non-profit organisation or for approval for the purposes of deduction under section 133(1)(b)(ii)
(1) An application for registration under section 332 or approval under section 354, in such cases as specified in column B of the following Table shall be made in the Form specified in column C, to the authority specified in column D thereof:
Sl. No. Case Form No. Authority 1. Application for provisional registration or approval is made under: (a) section 332(3) (Table: Sl. No. 1); or (b) section 354(2) (Table: Sl. No. 1) 104 Commissioner being Commissioner of Income Tax (CPC). 2. Application for registration or approval is made under: (a) section 332(3) (Table: Sl. Nos. 2 to 7); or (b) section 354(2) (Table: Sl. Nos. 2 to 5) 105 Principal Commissioner or Commissioner having jurisdiction over the applicant. (2) The application shall be accompanied by the documents, information and undertakings as specified in the Form relevant to such application.
(3) The application shall be — (a) furnished electronically — (i) under digital signature, if the return of income is required to be furnished under digital signature; (ii) through electronic verification code, in a case not covered under sub-clause (i); and (b) verified by the person who is authorised to verify the return of income under section 265, as applicable to the applicant.
(4) On receipt of an application in Form No. 104, the Commissioner of Income Tax (CPC), shall pass an order in writing in Form No. 106, by issuing a 16-digit alphanumeric Unique Registration Number (URN) and granting registration under section 332(8) or granting approval under section 354(4), or both.
(5) The Form 104 shall be considered non-est and shall not be further proceeded with where the activities have commenced or it has been registered under any specified provision.
(6) The registration or approval granted in Form No. 106 and Unique Registration Number (URN), issued under sub-rule (4), may be cancelled by the Principal Commissioner or Commissioner, as referred to in sub-rule (1) [Table: Sl. No. 2] after providing an opportunity of being heard to the applicant, if, at any point of time it is noticed that Form No. 104, — (a) contains any false or incorrect information; and (b) does not comply with the requirements of sub-rule (3).
(7) Where the registration or approval granted or URN issued under sub-rule (4) is cancelled by the Principal Commissioner or Commissioner, such registration or approval or URN shall be considered to have never been granted or issued.
(8) The applicant may surrender the registration or approval granted under sub-rule (4) if the applicant — (a) has not claimed benefits, in its return of income for any tax year including the tax year in which such surrender of registration or approval is made, under, - (i) Part B of Chapter XVII of the Act; or (ii) section 10(23C)(iv) or (v) or (vi) or (via) of the Income-tax Act, 1961 (43 of 1961), as it existed prior to its repeal; or (iii) section 11 or section 12 of the Income-tax Act, 1961 (43 of 1961), as it existed prior to its repeal; and (b) gives an undertaking that no claim of benefits shall be made in the return of income for any tax year under the provisions referred to in clause (a).
(9) Where applicant surrenders the registration or approval as per the provisions of sub-rule (8), such registration or approval shall be deemed to have never been granted.
(10) On receipt of an application in Form No. 105, the Principal Commissioner or Commissioner, shall pass an order in writing in Form No. 107, for any of the following: — (a)issuing a 16-digit alphanumeric Unique Registration Number (URN) and granting registration or approval; or (b) rejecting the application; or (c) rejecting the application and also cancelling the registration or approval; or (d) granting registration or approval under one section code as mentioned in Form and rejecting the application under the other section code mentioned in the application.
(11) The applicant shall be allowed to withdraw the application for registration or approval if such a request for withdrawal is made within seven days of filing of application.
(12) Where an order in Form No. 107 (herein referred to as the earlier order) has been issued by rejecting the application or cancelling the registration or approval or both, the applicant may re-apply in Form No. 105 within one month from the end of the month in which said order is passed, if the following conditions are satisfied: — (a) such rejection or cancellation is on account of — (i) failure of the applicant to provide all or any of the documents or information as sought by the Principal Commissioner or Commissioner under section 332(7); or (ii) not availing an opportunity of being heard; or (iii) ineligibility of the applicant on account of certain terms contained in the trust deed; (b) the applicant has provided the reasons for — (i) the failure to provide necessary information or documents; or (ii) not availing the opportunity to be heard; or (iii) ineligibility of the applicant on account of certain terms contained in the trust deed which has been modified on or before the date of re-application; and (c) the applicant gives an undertaking that he — (i) has not made any appeal against the earlier order or has withdrawn the appeal filed before any appellate authority against such order; and (ii) shall not file any appeal before any appellate authority against the earlier order.
(13) The applicant shall be allowed only one time opportunity to re-apply under sub-rule (12).
(14) The re-application made under sub-rule (12), where the order was issued under section 332(7)(b) or 354(3)(b), shall be considered to be a fresh application and the time limit for passing order shall continue to be governed by the provisions of section 332(3) or 354(2), as the case may be, and the provisions of this rule shall apply accordingly.
(15) Where the applicant notices that the application in the Form No. 105 has been made by furnishing an erroneous section code or erroneous nature of activity as specified in the said Form, — (a) the applicant may furnish a request for correction before the Principal Commissioner or the Commissioner, at any time before passing of the order in Form No. 107; and (b) the Principal Commissioner or the Commissioner on receipt of such request, may allow such correction.
(16) In this rule, ―specified provision‖ shall have the meaning assigned to it in section 355(m).
Rule breakdown
Choose the correct form and authority
The table’s provisional-registration or approval row uses Form 104 and the Commissioner of Income Tax (CPC). The other listed registration or approval cases use Form 105 and the jurisdictional Principal Commissioner or Commissioner.
Identify the exact row in section 332 or 354 before selecting the form. Registration of the organisation and approval relevant to a donor’s deduction are related but distinct statutory decisions.
Check whether Form 104 is available
Sub-rule (5) says Form 104 is non-est and is not proceeded with where activities have commenced or the applicant has been registered under any specified provision. The expression specified provision takes its meaning from section 355(m).
Do not use the provisional route solely because an organisation regards itself as new; establish its activity and prior-registration history against the statutory conditions.
Prepare documents and electronic verification
The application must contain the documents, information and undertakings specified in the relevant form. Use digital signature if the income-tax return is required under digital signature; otherwise the rule permits EVC.
The verifier must be the person authorised under section 265 for that applicant. Keep governing documents, activity details, prior orders and the completed application consistent.
Understand orders and the registration number
A Form 104 application leads to the specified Form 106 order and a 16-digit alphanumeric URN. Form 105 is decided through Form 107, which may grant, reject, reject with cancellation, or grant one section-code request while rejecting another.
A common application does not guarantee identical outcomes under both sections. Read the actual order and each section code rather than relying on possession of a URN alone.
Keep cancellation and surrender conditions distinct
Sub-rules (6) and (7) address cancellation after an opportunity of hearing and the consequence that the registration, approval or URN is considered never granted or issued. The quoted conditions should be read in full.
Voluntary surrender under sub-rule (8) is separately conditioned on no claimed benefits under the listed provisions, including the surrender year, and an undertaking against future claims. A qualifying surrender also has the stated never-granted consequence.
Withdrawal and correction have different time limits
An application may be withdrawn if the request is made within seven days of filing. A request to correct an erroneous section code or nature of activity in Form 105 can be made before the Form 107 order; the authority may allow the correction.
Do not assume that the correction provision permits every substantive change or that a request after the order fits this route.
Use the limited re-application route only if all conditions fit
The rule permits one re-application in Form 105 within one month from the end of the month of the specified rejection or cancellation order. It is limited to the listed failures concerning information, hearing or trust-deed terms, with reasons and the required undertakings.
The applicant must not have appealed, or must have withdrawn the appeal, and must undertake not to appeal the earlier order. Consider those conditions carefully before choosing this route. Where sub-rule (14) applies, the re-application is treated as fresh and the cited statutory time-limit provisions continue to govern.
Maintain an application and order checklist
Record activity commencement, prior registration, relevant section and table row, selected form, authorised verifier, filing date, supporting documents and the issued order. Track any seven-day withdrawal or month-end re-application period separately.
Seek professional guidance before surrendering a benefit, withdrawing an appeal or relying on the limited re-application mechanism, because those steps affect the organisation’s legal position.
Key takeaways
Two application routes
Form 104 and Form 105 have different statutory cases and authorities.
Separate outcomes possible
Registration and approval need not have identical decisions.
Short procedural windows
Withdrawal and re-application have different clocks.
One re-application opportunity
Eligibility and appeal undertakings must all be checked.
Practical checklist
- Identify the correct section and table row.
- Check activities and previous registration before choosing Form 104.
- Verify all undertakings before signing.
- Track filing and order dates separately.
Avoid
- Do not assume every rejection qualifies for re-application.
- Do not equate a URN with every possible statutory approval.
FAQs
Does Form 104 apply after activities have commenced?
Sub-rule (5) says Form 104 is non-est and is not proceeded with where activities have commenced or the applicant has been registered under a specified provision.
Can an application be withdrawn at any time?
The withdrawal request must be made within seven days of filing under sub-rule (11).
Is re-application available after every rejection?
No. Sub-rule (12) specifies the grounds, reasons, time limit and appeal undertakings; sub-rule (13) allows only one opportunity.
Can a wrong section code in Form 105 be corrected after the order?
The stated request window is before the Form 107 order is passed, and the authority may allow the correction.
Does a URN necessarily establish both registration and donor-deduction approval?
Read the section-wise order. Form 107 may grant under one section code while rejecting the other request.
Glossary
- URN
- The 16-digit alphanumeric Unique Registration Number referred to in Rule 181.
- Non-est application
- An application treated as not existing for the stated processing purpose under sub-rule (5).