Section 332 — Charitable Trust Registration | ITA 2025

Section 332 — - APPLICATION FOR REGISTRATION OF CHARITABLE TRUST / NPO

Section 332 is the substantive equivalent of 1961 ss. 12A / 12AB -- THE FOUNDATIONAL REGISTRATION PROVISION for charitable trusts / Non-Profit Organisations (NPOs) seeking exemption under s. 11 / 1961 s. 11. FA 2020 watershed restructuring replaced the historic perpetual-registration regime with PERIODIC REGISTRATION / RE-REGISTRATION (5-year cycle). All existing trusts had to RE-APPLY post 1-Apr-2021 to continue exemption. The provision is one of the LARGEST in this chapter (~10K bytes), covering: (a) eligibility / category (purely charitable / partly religious-charitable / educational-medical-only); (b) provisional vs final registration architecture; (c) renewal cycles; (d) PCIT/CIT review / approval; (e) cancellation grounds; (f) integration with FA 2022 modifications. Practitioner-grade rule: every trust / NPO must navigate this provision carefully -- non-compliance results in LOSS OF S. 11 EXEMPTION and tax at full rates.

Statutory text — Income-tax Act, 2025

Marginal note -- Application for registration

(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 64[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 com- mencement 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.

TABLE Sl. Case Time limit for Time limit for Validity of No. furnishing passing order registration application A B C D E

1. Where the activities At any time during One month from Three tax years of the applicant have the tax year begin- the end of the commencing not commenced and it ning from which month in which from the tax year has not been registered registration is application is in which such ap- under any specified sought. made. plication is made. provision at any time before making the ap- plication.

64. Substituted for “Schedule VII (Table: Sl. No. 10) to (Table: Sl. No. 19)” by the Finance Act, 2026, w.e.f. 1-4-2026. Sl. Case Time limit for Time limit for Validity of No. furnishing passing order registration application A B C D E

2. Where the activities At any time Six months from Five tax years of the applicant have during the tax the end of the commencing commenced and it has year, beginning quarter in which from the tax year not been registered from which regis- application is in which such ap- under any specified tration is sought. made. plication is made. provision at any time before making the ap- plication.

3. Where the applicant Within six months Six months from Five tax years has been granted pro- of the commence- the end of the commencing visional registration ment of activities. quarter in which from the tax year and activities have application is in which such ap- commenced. made. plication is made.

4. Where the provisional At least six months Six months from Five tax years registration of the ap- prior to the expiry the end of the following the tax plicant is due to expire of the provisional quarter in which year in which and activities have not registration. application is such application commenced. made. is made.

5. Where the registration At least six months Six months from Five tax years of the applicant is due prior to the expiry the end of the following the tax to expire, other than of the registra- quarter in which year in which cases mentioned at tion. application is such application serial number 4. made. is made.

6. Where the registration At any time during Six months from Five tax years of the applicant has the tax year begin- the end of the commencing become inoperative ning from which quarter in which from the tax year due to switching over the registration is application is in which such ap- of regime under sec- sought to be made made. plication is made. tion 333. operative.

7. Where the applicant, Within thirty days Six months from Five tax years being a registered of the date of such the end of the commencing non-profit organisa- adoption or mod- quarter in which from commence- tion, has adopted or un- ification application is ment of the tax dertaken modification made. year in which of its objects which do such application not conform to the con- is made. ditions of registration.

(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 Commis- sioner 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 cancel- ling 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 Com- missioner 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. Switching over of regimes.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 332	INCOME-TAX ACT, 1961 -- s. 12A / 12AB
Sub-s. (1) -- Application for registration	1961 s. 12A(1)(ac) [FA 2020]
Categories: provisional / final / re-registration	1961 s. 12AB [FA 2020]
Form 10A / 10AB / 10AC framework	1961 Rule 17A / Rule 11AA / Rule 17B
5-year registration cycle	1961 s. 12AB(1)(b) [FA 2020]
FA 2022 modifications -- registration cancellation	1961 s. 12AB(4) / 12AB(5)
Specified violations triggering cancellation (s. 351)	1961 s. 12AB(4)

STATUTORY ARCHITECTURE

REGISTRATION CATEGORIES (post FA 2020): (I) PROVISIONAL REGISTRATION (Form 10A): for newly formed trusts; valid for 3 years OR until commencement of activities (whichever earlier); auto-converts to final registration on application. (II) FINAL REGISTRATION / RE-REGISTRATION (Form 10AC): for: (a) Existing trusts re-registering post-FA 2020; (b) Provisional trusts converting after activity commencement; (c) Already-registered trusts seeking renewal at expiry of 5-year cycle. VALIDITY: 5 YEARS from registration; renewable. (III) FINAL APPROVAL (Form 10AB): post 5-year cycle expiry; comprehensive review by PCIT/CIT. ELIGIBILITY (sub-s. 1): (a) PURELY CHARITABLE: relief of poor / education / medical relief / preservation of environment / monuments / yoga / advancement of any other object of general public utility (per s. 2 'charitable purpose' definition); (b) RELIGIOUS-CHARITABLE: religious activities + charitable; (post FA 2022 substantial restrictions); (c) EDUCATIONAL / MEDICAL: schools / colleges / hospitals / clinics under specified categories; (d) Object must be wholly genuinely charitable; commercial activities restricted (s. 345 of 2025 Act / 1961 s. 11(4A)). DOCUMENTATION: trust deed / bye-laws / objects clause / activity report / financial statements / etc.

FA 2020 / FA 2022 RESTRUCTURING

PRE-FA 2020: perpetual one-time registration; rare cancellation. Substantial misuse alleged. FA 2020: (a) ALL existing trusts forced to RE-APPLY for re-registration; cycle: 5 years; (b) Provisional registration concept introduced (Form 10A); (c) Mandatory renewal at 5-year cycle (Form 10AB); (d) PCIT/CIT review depth enhanced. FA 2022: (a) Specified violation grounds (s. 351 of 2025 Act / 1961 s. 12AB(4)) triggering cancellation; (b) Tax on accreted income (s. 352 / 1961 s. 115TD) on cancellation / dissolution; (c) Restrictions on cross-trust transfers / commercial activities; (d) Anonymous donation tax under s. 337 / 1961 s. 115BBC at 30%.

PROCEDURAL FLOW

(1) NEW TRUST: Form 10A filed via e-filing portal; auto-issued provisional registration (Form 10AC); 6-month max review by PCIT. (2) ON ACTIVITY COMMENCEMENT: file Form 10AB within 6 months of activity commencement; PCIT review; final registration. (3) RENEWAL (every 5 years): Form 10AB; PCIT review; final registration extended. (4) PCIT may CANCEL if: (a) genuineness of activities not established; (b) compliance issues; (c) specified violations under s. 351. (5) Appeal route: cancellation order appealable to ITAT (skip CIT(A)) within 60 days.

CASE LAW

(i) Surat Art Silk Cloth Manufacturers Association v. CIT (SC, 1980) -- liberal-reading 'charitable purpose'. (ii) Society of Sisters of St. Anne v. CIT (Kar HC) -- religious-charitable distinction. (iii) PCIT v. Society of the Servants of Cross (Bom HC) -- registration validity / commercial activity test. (iv) Recent post-FA 2020 cases: re-registration validity / Form 10A vs 10AB distinction litigation. (v) FA 2022 amendments under judicial review at HC level.

PLANNING NOTES

(i) RE-REGISTRATION DISCIPLINE -- maintain renewal calendar; 5-year cycle strict. (ii) FORM SELECTION -- Form 10A (provisional / new) vs 10AB (final / renewal) vs 10AC (auto-issued provisional certificate). (iii) ACTIVITY COMMENCEMENT TRACKING -- 6-month window post commencement for 10AB filing; missed deadline = provisional lapse. (iv) DOCUMENTATION -- comprehensive trust documents / objects-clause precision / financial statements / activity reports. (v) COMMERCIAL ACTIVITY MONITORING -- s. 345 / 1961 s. 11(4A) restrictions; <20% gross-receipts threshold typically. (vi) CANCELLATION RISK -- monitor specified violations under s. 351; corrective action; appellate strategy. (vii) ACCRETED INCOME TAX EXPOSURE -- s. 352 on cancellation / dissolution -- significant; document compliance. (viii) CHARITABLE-RELIGIOUS HYBRID -- post-FA 2022 restrictions; verify current status; restructuring may be needed.

CROSS-REFERENCES

Section 11 / 1961 s. 11 -- Trust income exemption.
Section 333 -- Switching over of regimes.
Section 334-355 -- Trust regime detailed framework.
Section 337 -- Specified income (anonymous donations 30%).
Section 341 -- Application of income.
Section 345 -- Commercial activities restriction.
Section 351 -- Specified violations.
Section 352 -- Tax on accreted income.
Section 354 -- 80G approval.
Section 263 / 263(4A) -- Trust return-filing.
Income-tax Rules, 2026 -- Form 10A / 10AB / 10AC.

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