Income Tax Act 2025 and the Rules of 2026 in Force
Now that the pressures of fiscal year ending on 31st March 2026 is over and the FCRA Amendment Bill too has been deferred for the time being, let’s focus on what is new.
What is New is Income Tax Act 2025 which has come into effect from 1st April 2026 and the Income Tax Rules 2026. It is time we start getting acquainted with and memorizing the new Form Numbers and new Sections.
- Erstwhile Form 10A for provisional registration for tax exemption and tax deduction in now Form 104.
- Erstwhile Form 10AB for regular registration/renewal for five years is now Form 105
- Erstwhile Audit Report in Form 10B or 10BB (as applicable) is now Form 112
- Erstwhile Donor details which were filed in Form 10BD is now Form 113
- Erstwhile tax deduction certificate in Form 10BE is now Form 114
Under the New Income Tax Act 2025:
- Order for provisional registration u/s 332 or provisional approval u/s 354 ,Rejection of application will be issued by Income Tax in New Form 106.
- Order for grant of registration under section 332 (erstwhile 12A) or approval under section 354 (erstwhile 80G) or rejection of application or cancellation of registration or approval granted shall be issued by Income Tax in the New Form 107.
Old wine in new bottle
Under the new law, the fundamental principles pertaining to tax exemption and tax exemptions remain unchanged and thus earlier case laws on these issues will continue to apply.
Under Income Tax Act 2025 provisions pertaining to NPOs are divided into seven parts covering:
- Registration – Section 332 & 333
- Income of registered NPOs – Section 334 to 342
- Commercial activities by registered NPOs – Section 344 to 346
- Compliances – Section 347 to 350
- Violations – Section 351 to 353
- Donation eligibility u/s. 133(1)(b)(ii) – Section 354 (Old Section 80G)
- Interpretation (For various connotations used in the Act) – Section 355
Seamless transition
Income Tax Act 2025 protects the eligibility of all currently registered NPOs, ensuring that those with valid registrations under Sections 12A, 12AA, 12AB, or Section 10(23C) can continue to claim benefits, provided their registrations have not been cancelled and transition smoothly under the revised framework without losing tax benefits.