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Rule 187: Books and records a registered non-profit organisation must keep

Rule 187 applies to a registered non-profit organisation that is required by section 347 to keep books of account and other documents. It lists the books of account, separate books for business undertakings and other businesses, and detailed records of income, application, accumulation, corpus donations, loans, properties and related-person transactions. It also fixes the place of keeping, the permitted forms and a six-year retention period that extends if an assessment is reopened.

Official notified Income-tax Rules, 2026

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Rule 187 - Books of account and other documents to be kept and maintained by a registered non-profit organisation

(1) Every registered non-profit organisation which is required to keep and maintain books of account and other documents under section 347 shall keep and maintain the following: — (a) books of account, which shall include: — (i) cashbook; or (ii) ledger; or (iii) journal; or (iv) copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the assessee, and copies or counter foils of machine numbered or otherwise serially numbered receipts issued by the assessee; or (v) original bills wherever issued to the person and receipts in respect of payments made by the person; or (vi) any other book that may be required to be maintained in order to give a true and fair view of the state of affairs of the person and explain the transactions effected; (b) books of account, as referred to in clause (a) for business undertaking referred in section 344; (c) books of account, as referred to in clause (a) for business carried on by the assessee other than the business undertaking referred in section 344;

(d) other documents for maintaining — (i) record of all the projects and institutions run by the person containing details of their name, address and objectives; (ii) record of income of the person during the tax year in respect of — (I) charitable or religious activity, for which it is registered; (II) any property, deposit or investment held by such registered non-profit organisation; (III) voluntary contributions received; (IV) any commercial activity permissible under sections 344, 345 and 346; (V) specified income, as referred to in section 337; and (VI) residual income as referred in section 355(j);

(iii) record of the following, out of the income of the person during the tax year: — (I) application of income, in India, containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (II) amount credited or paid to any registered non-profit organisation, containing details of their name, address, permanent account number and the object for which such credit or payment is made; (III) application of income outside India containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (IV) deemed application of income referred to in section 341(5) containing details of the reason for availing such deemed application; (V) income accumulated or set apart as per the provisions of section 342(1) which has not been applied or deemed to be applied containing details of the purpose for which such income has been accumulated; (VI) money invested or deposited in the forms and modes referred to in section 350; and (VII) money invested or deposited in the forms and modes other than those referred to in section 350;

(iv) record of the following, out of the income of the person of any tax year preceding the current tax year: — (I) application out of the income accumulated or set apart containing details of year of accumulation, amount of application during the tax year out of such accumulation, name and address of the person to whom any credit or payment is made and the object for which such application is made; (II) application out of the deemed application of income referred to in section 341(5), for any preceding tax year, containing details of year of deemed application, amount of application during the tax year out of such deemed application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (III) application, other than the application referred in items (I) and (II), out of income accumulated during any preceding tax year containing details of year of accumulation, amount of application during the tax year out of such accumulation, name and address of the person to whom any credit or payment is made and the object for which such application is made; (IV) money invested or deposited in the forms and modes referred to in section 350; (V) money invested or deposited in the forms and modes other than those referred to in section 350;

(v) record of donations made with a specific direction that they shall form part of the corpus, in respect of — (I) the donations received during the tax year containing details of name of the donor, address, Permanent Account Number (if available) and Aadhaar number (if available); (II) application out of such donations referred to in item (I) containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (III) amount credited or paid towards corpus to any registered non-profit organisation, out of such donation received during the tax year containing details of their name, address, Permanent Account Number and the object for which such credit or payment is made; (IV) the forms and modes referred to in section 350 in which such voluntary contribution, received during the tax year, is invested or deposited; (V) money invested or deposited in the forms and modes other than those referred to in section 350 in which such donation, received during the tax year, is invested or deposited; (VI) application out of such donation, received during any tax year preceding the tax year, containing details of the amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (VII) amount credited or paid towards corpus to any registered non-profit organisation, out of such donation received during any tax year preceding the tax year, containing details of their name, address, Permanent Account Number and the object for which such credit or payment is made; (VIII) the forms and modes referred to in section 350 in which such voluntary contribution, received during any tax year preceding the tax year, is invested or deposited; (IX) money invested or deposited in the forms and modes, other than those referred to in section 350 in which such voluntary contribution, received during any tax year preceding the tax year, is invested or deposited; and (X) amount invested or deposited back into a donation (which was applied during any preceding tax year and not claimed as application) including details of the forms and modes referred to in section 350 in which such voluntary contribution is invested or deposited;

(vi) record of donations received for the purpose of renovation or repair of temple, mosque, gurdwara, church or other place notified under section 133(1)(b)(vi), which are being treated as corpus as referred in section 340, in respect of, — (I) the donations received during the tax year containing details of name of the donor, address, Permanent Account Number (if available) and Aadhaar number (if available); (II) donation received during any tax year preceding the tax year, treated as corpus during the tax year, containing details of name of the donor, address, Permanent Account Number (if available) and Aadhaar number (if available); (III) application out of such donation referred to in items (I) and (II) containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (IV) amount credited or paid towards corpus to any registered non-profit organisation, out of such donation received during the tax year containing details of their name, address, Permanent Account Number and the object for which such credit or payment is made; (V) the forms and modes referred to in section 350 in which such corpus, received during the tax year, is invested or deposited; (VI) money invested or deposited in the forms and modes other than those referred to in section 350 in which such corpus, received during the tax year, is invested or deposited; (VII) application out of such corpus, received during any tax year preceding the tax year, containing details of amount of application, name and address of the person to whom any creditor payment is made and the object for which such application is made; (VIII) amount credited or paid towards corpus of any registered non-profit organisation, out of such donation received during any tax year preceding the tax year, containing details of their name, address, Permanent Account Number and the object for which such credit or payment is made; (IX) the forms and modes referred to in section 350 in which such corpus, received during any tax year preceding the tax year, is invested or deposited; and (X) the money invested or deposited in the forms and modes other than those referred to in section 350 in which such corpus, received during any tax year preceding the tax year, is invested or deposited;

(vii) record of loans and borrowings, — (I) containing information regarding amount and date of loan or borrowing, amount and date of repayment, name of the person from whom was loan taken, address of lender, Permanent Account Number and Aadhaar number (if available) of the lender; (II) application out of such loan or borrowing containing details of amount of application, name and address of the person to whom any credit or payment is made and the object for which such application is made; (III) application out of such loan or borrowing, received during any tax year preceding the tax year, containing details of amount of application, name and address of the person to whom any credit or payment is made; and (IV) repayment of such loan or borrowing (which was applied during any preceding tax year and not claimed as application) during the tax year;

(viii) record of properties held by the assessee, with respect to the following: — (I) immovable properties containing details of — (A) nature, address of the properties, cost of acquisition of the asset, registration documents of the asset; and (B) transfer of such properties, the net consideration utilised in acquiring the new capital asset; and (II) movable properties including details of the nature and cost of acquisition of the asset;

(ix) record of related person as referred to in section 355(h), — (I) containing details of their name, address, Permanent Account Number and Aadhaar number (if available); (II) transactions undertaken by the registered non-profit organisation with related personas referred to in section 355(h) containing details of date and amount of such transaction, nature of the transaction and documents to the effect that such transaction is, directly or indirectly, not for the benefit of such specified person; and (x) any other documents containing any other relevant information.

(2) The books of account and other documents specified in sub-rule (1) may be kept in written form or in electronic form or in digital form or as printouts of data stored in electronic form, or in digital form, or any other form of electromagnetic data storage device.

(3) Subject to the provisions of sub-rule (4), the books of account and other documents specified in sub-rule (1) shall be kept and maintained by the registered non-profit organisation at its registered office.

(4) All or any of the books of account and other documents referred to in sub-rule(1), may be kept at such other place in India as the management may decide by way of a resolution and where such solution is passed, the registered non-profit organisation shall, within seven days thereof, intimate the jurisdictional Assessing Officer in writing, giving the full address of that other place and such intimation shall be duly signed and verified by the person who is authorised to verify the return of income.

(5) Subject to the provisions of sub-rule (6), the books of account and other documents specified in sub-rule (1) shall be kept and maintained for a period of six years from the end of the relevant tax year.

(6) Where the assessment in relation to any tax year has been reopened under section 279 within the period specified in section 282, the books of account and other documents which were kept and maintained at the time of reopening of the assessment, shall continue to be so kept and maintained till the assessment so reopened has become final.

Rule breakdown

When the rule applies

Section 347 requires books and documents where the total income of a registered non-profit organisation, without giving effect to the provisions of that Part, exceeds the maximum amount not chargeable to income-tax in a tax year. Rule 187 then prescribes what those books and documents are and how they are kept.

If the section 347 threshold is not crossed for a tax year, Rule 187 is not the source of the obligation for that year. Other provisions, such as the audit requirement in section 348 and the conditions attached to registration, still need separate review.

Books of account under clause (a) to (c)

Clause (a) lists a cashbook, ledger, journal, copies of bills and serially numbered receipts issued, original bills and receipts for payments made, and any other book needed to give a true and fair view of the state of affairs and explain the transactions. In the printed text these items are joined by "or".

Clauses (b) and (c) separately require books of the same kind for a business undertaking referred to in section 344 and for any other business carried on by the organisation. Keep these business books identifiable rather than mixing them into the charitable accounts.

Records of income and its application

Clause (d)(i) and (ii) require a register of projects and institutions run, and records of income from the registered activity, property, deposits and investments, voluntary contributions, permitted commercial activity, specified income under section 337 and residual income under section 355(j).

Clause (d)(iii) and (iv) require records of how current-year income and income of earlier tax years is applied, with the amount, recipient name and address and object. It covers payments to other registered non-profit organisations (with their permanent account number), application outside India, deemed application under section 341(5), accumulation under section 342(1), and investments in and outside the forms and modes referred to in section 350.

Corpus donations and repair-of-place-of-worship donations

Clause (d)(v) requires donor-wise records of corpus donations (name, address, and PAN and Aadhaar if available), application out of them, transfers towards the corpus of other registered organisations and how the donations are invested, both for the current and earlier tax years. Item (X) covers amounts invested or deposited back into a donation that was applied earlier and not claimed as application.

Clause (d)(vi) requires a parallel set of records for donations received for renovation or repair of a temple, mosque, gurdwara, church or other place notified under section 133(1)(b)(vi) that are treated as corpus as referred to in section 340.

Loans, properties and related persons

Clause (d)(vii) requires lender-wise loan and borrowing records (amount and dates of loan and repayment, lender name, address, PAN and Aadhaar if available), application out of loans in the current and earlier years, and repayment during the year of a loan that was applied in an earlier year and not claimed as application.

Clause (d)(viii) requires property records: for immovable property, nature, address, cost of acquisition, registration documents and details of transfers and net consideration used for a new capital asset; for movable property, nature and cost. Clause (d)(ix) requires a register of related persons under section 355(h) and of transactions with them, including documents showing that the transaction is not for the benefit of such specified person. Clause (d)(x) adds any other document containing relevant information.

Form, place and retention period

The books and documents may be kept in written, electronic or digital form, as printouts of electronically stored data or on other electromagnetic storage. They must be kept at the registered office, unless the management decides by resolution to keep all or any of them at another place in India.

Where another place is chosen, the organisation must intimate the jurisdictional Assessing Officer in writing within seven days, giving the full address, signed and verified by the person authorised to verify the return of income. The printed sub-rule (4) reads "where such solution is passed"; the text is quoted as notified. Records must be kept for six years from the end of the relevant tax year, and where an assessment is reopened under section 279 within the period in section 282, records kept at the time of reopening must be kept until that assessment becomes final.

Hypothetical example

Hypothetical: a registered educational trust whose income crosses the section 347 threshold runs two schools and receives a corpus donation and a loan from a trustee during the tax year. Applying Rule 187, it would keep its cashbook, ledger and receipts, a register of both schools, donor-wise corpus records showing where the corpus is invested, a loan register showing the trustee as lender and how the loan was applied, and a related-person register covering the trustee and the loan transaction.

If the trustees decide to keep the records at an administrative office instead of the registered office, the resolution, the written intimation to the Assessing Officer within seven days and the signed verification should all be retained. This example is illustrative only and does not decide whether any particular transaction is permissible.

Key takeaways

Section 347 trigger

The rule applies where the organisation is required by section 347 to keep books.

Detailed registers

Income, application, accumulation, corpus, loans, property and related-person records are all listed.

Registered office by default

Another place in India needs a management resolution and intimation to the Assessing Officer within seven days.

Six years, or longer if reopened

Retention runs six years from the end of the tax year and extends while a reopened assessment is pending.

Practical checklist

  • Check each year whether the section 347 threshold is crossed.
  • Keep donor-wise corpus records with PAN and Aadhaar where available.
  • Maintain lender-wise loan and repayment records and the application of loan funds.
  • Keep a related-person register and supporting documents for each transaction.
  • Record investments separately for forms and modes inside and outside section 350.
  • Pass a resolution and intimate the Assessing Officer within seven days if records are kept away from the registered office.
  • Track reopened assessments before destroying any records.

Avoid

  • Do not mix business-undertaking books with the charitable accounts.
  • Do not discard records after six years if an assessment for that year has been reopened and is not final.

FAQs

Does Rule 187 apply to every registered non-profit organisation?

It applies to an organisation required to keep books and documents under section 347, which depends on total income, computed without giving effect to that Part, exceeding the maximum amount not chargeable to tax in the tax year.

Can the books be kept only in electronic form?

Sub-rule (2) allows written, electronic or digital form, printouts of electronically stored data or other electromagnetic storage.

Can the records be kept somewhere other than the registered office?

Yes, at another place in India decided by a management resolution, with written intimation of the full address to the jurisdictional Assessing Officer within seven days, signed and verified by the person authorised to verify the return.

How long must the records be kept?

Six years from the end of the relevant tax year. If an assessment is reopened under section 279 within the period in section 282, the records kept at that time must be kept until the reopened assessment becomes final.

Are separate books needed for a business undertaking?

Clauses (b) and (c) require books of the kind in clause (a) for a business undertaking referred to in section 344 and for other business carried on by the organisation.

Glossary

Registered non-profit organisation
The organisation to which Rule 187 applies when it is required to keep books under section 347.
Corpus donation
In Rule 187(1)(d)(v), a donation made with a specific direction that it shall form part of the corpus.
Related person
A person referred to in section 355(h), for whom Rule 187(1)(d)(ix) requires a separate register.
Forms and modes under section 350
The investment and deposit forms referred to in section 350; Rule 187 requires investments inside and outside them to be recorded separately.

Official sources

Related rules