CBDT Prescribes Conditions for Merger of Registered Non-Profit Organisations

CBDT has prescribed a detailed framework governing mergers between registered non-profit organisations under the Income-tax Act, 2025. Rule 189A requires both organisations to have compatible registration status, restricts changes to the merged organisation's objects for five years and transfers the merging organisation's assets, liabilities and tax-related obligations to the surviving entity. The merged organisation must also intimate the jurisdictional Principal Commissioner or Commissioner through Form 112A within the prescribed timeline. The framework makes clear that a merger does not extinguish the merging organisation's outstanding tax obligations or compliance responsibilities.