registered non-profit organisation or a person referred to in Schedule VII (Table: Sl. No. 1) may, for the purpose of section 133(1)(b)(ii), make an application for approval in such form and manner, as may be prescribed, to the Principal Commissioner or Commissioner, subject to the following conditions:–– (a) it is not expressed to be for the benefit of any particular religious community or caste; (b) it is established in India for a charitable purpose and does not incur any expenditure of an amount exceeding 5% of its total income during a tax year which is of a religious nature; (c) the instrument under which it is constituted does not, or the rules governing it do not, contain any provision for the transfer at any time of the whole or any part of its assets for any purpose other than a charitable purpose; (d) it maintains regular accounts of its receipts and expenditure; (e) it prepares such statement for such period, as may be prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time, as may be prescribed; (f) it delivers to the said prescribed authority, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under clause (e) in such form and verified
Income–tax Act, 2025 [Sec 302-355] in such manner, as may be prescribed; and (g) it furnishes a certificate to the donor specifying the amount of donation within such period from the date of receipt of the donation containing the requisite particulars in manner, as may be prescribed. (2) The application under sub-section (1) shall be made in respect of the cases referred to in column B of the Table below within the time limit provided in column C of the said Table and the Principal Commissioner or Commissioner, on receipt of such application, shall follow the procedure provided in sub-sections (3) and (4), and shall pass an order in writing within the time limit provided in column D and approval, if granted, shall be valid for a period provided in column E of the said Table. Table Sl. No. Case Time limit for Time limit Validity of furnishing for passing approval application the order A B C D E 1. Where the At any time One month Three tax activities of the during the tax from the end years applicant have year from which of the month commencing not approval is in which from the tax commenced. sought. application is year in which made. such application is made. 2. Where the At any time Six months Five tax years activities of the during the tax from the end commencing applicant have year from which of the quarter from the tax commenced. approval is in which year in which sought. application is such application made. is made. 3. Where the Within six Six months Five tax years applicant has months of the from the end commencing provisional commencement of the quarter from the tax approval and of activities. in which year in which activities have application is such commenced. made. application is made.
Sl. No. Case Time limit for Time limit Validity of furnishing for passing approval application the order A B C D E 4. Where the At least six Six months Five tax years provisional months prior to from the end following the approval of the the expiry of the of the quarter tax year in applicant is due provisional in which which such to expire and approval. application is application is activities have made. made. not commenced. 5. Where the At least six Six months Five tax years period for months prior to from the end following the approval of a the expiry of the of the quarter tax year in registered non- said approval. in which which such profit application is application is organisation is made. made. due to expire. (3) Where an application has been made in any of the cases specified under sub-section (2) (Table: Sl. No. 2 to 5), the Principal Commissioner or Commissioner shall call for such documents or information or make such inquiries as he thinks necessary in order to satisfy himself about the genuineness of the activities, and compliance of such requirements of any other law in force, as are material for the purposes 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, he shall pass an order in writing approving it; or (b) if he is not so satisfied, after affording a reasonable opportunity of being heard,–– (i) shall pass an order in writing rejecting the application, where the application was made in any of the cases specified in sub-section (2) (Table: Sl. No. 2); and (ii) in any other case, shall pass an order in writing rejecting the application and also cancelling the approval, and send a copy of the order to the applicant and the Assessing Officer.