Form 108 Income Tax Rules 2026 pdf download and Key points
FORM NO. 108
[See rule 184]
Exercise of option under section 341(7) in respect of amount applied for charitable or religious purposes
Under the new Income-tax Rules, 2026, Form No. 108 replaces the old Form 9A. It is a crucial compliance form for registered non-profit organisations (NGOs).
Here are all the key points regarding Form No. 108:
1. Purpose of the Form Form 108 is a statement used by a registered non-profit organisation to exercise an option under Section 341(7) of the new Income-tax Act, 2025. If an NGO could not apply the mandatory 85% of its regular income for charitable or religious purposes because it did not actually receive that income during the relevant tax year, it can use this form to claim that shortfall amount as a “deemed application” under Section 341(5).
2. Applicability and Mandatory Nature
- Who must file: Any registered non-profit organisation that wants to claim an amount of regular income as a deemed application due to a shortfall.
- Is it mandatory? Yes. If the organisation wishes to claim the shortfall as a deemed application to avoid losing its tax exemption, filing Form 108 is mandatory. Failure to file or delayed filing will result in losing the tax exemption benefit for that unapplied income.
3. Timelines and Mode of Filing
- Frequency: It must be filed annually.
- Due Date: The form must be filed on or before the due date for filing the annual return of income under Section 263(1) for the relevant tax year.
- Mode of Filing: It can only be filed online on the Income Tax e-filing portal and is furnished electronically/digitally to the Commissioner of Income Tax (CPC). It cannot be filed offline.
4. Structure of the Form The form is divided into specific parts to capture the computation and reasons for the shortfall:
- Part A: Captures the applicant’s details (Name, PAN, Address, Email, Contact, Tax Year) and the computation of the regular income for which the option is being exercised.
- Part B: Captures the specific reasons for the shortfall in the application of income.
5. Important Rules and Restrictions
- PAN is Mandatory: The form cannot be filed without a valid Permanent Account Number (PAN).
- No Editing After Submission: Once Form 108 is successfully submitted on the portal, it cannot be edited. Taxpayers must ensure all details are accurate before final submission.
- Outcome: Upon successful filing of Form 108, the NGO is permitted to claim the reported shortfall as a “deemed application” in the income tax return that they file subsequently.