CBDT tightens merger rules for registered non-profits
In short
The Central Board of Direct Taxes changed the rules for non-profits on October 30. Groups that merge must tell the Income Tax Department on time, audit their accounts, and explain why they merged. The rules also stop regular-registration groups from merging with provisional ones, and the other way around.
This matters for charities and trusts because it adds more checks before and after a merger. The reporting does not say how many groups are affected or what penalties, if any, apply.
What the reporting says
The Central Board of Direct Taxes on October 30 tightened merger rules for registered non-profits, requiring organisations that merge to inform the Income Tax Department within a prescribed deadline, get their accounts audited and disclose merger reasons. The new rules also bar mergers between regular and provisional registrations. The reporting says the changes add compliance steps, but it does not state the deadline or any immediate impact on filings.
Why it matters
The Central Board of Direct Taxes notified new merger rules on October 30 for organisations registered as non-profits. The reported changes require a merger notice to the Income Tax Department, audited accounts and disclosure of merger reasons. The rules also prevent entities with regular registration from merging with provisional-registration entities, or vice versa. The reporting does not state the deadline details or any enforcement outcome.