Form Nos explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Three short forms are used by a registered non-profit organisation when it does not apply all of its regular income in the tax year: Form 108 exercises the option to treat a shortfall as deemed application, Form 109 is the statement of accumulation or setting apart of income, and Form 110 asks to change the purpose of an accumulation. This article describes them as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
All three go to the Assessing Officer and are signed by a trustee or principal officer (Note 3 or 4 of each form). Form 108 (rule 184) and Form 109 (rule 185) are due on or before the due date under section 263(1) for the return of income. Form 110 (rule 186) is the application to change the purpose of an accumulation; the Assessing Officer's order on it is in Form 111.
The sections behind the forms
Sections 341 to 343 of the Income-tax Act, 2025 deal with how a registered non-profit organisation applies its regular income. Section 341(7) is the option to treat a shortfall in application as deemed application; section 342(1) allows accumulating or setting apart income by furnishing a statement; section 342(5) allows an application to change the purpose of an accumulation. Read the three sections together in our post on sections 341 to 343 of the Income-tax Act, 2025. The rules are covered in rules 184 and 185 and rules 182, 183 and 186.
For a trust or society planning its application of income and the filings that follow, our 12A, 80G and CSR registration team can review the position year by year.
Form 108: exercise of option under section 341(7)
Rule 184 says the option for any tax year is exercised in Form 108 on or before the due date specified under section 263(1) for furnishing the return of income, and that the form is furnished electronically, under digital signature or an electronic verification code. The printed title is "Exercise of option under section 341(7) in respect of amount applied for charitable or religious purposes".
| Part | Rows | What it asks |
|---|---|---|
| Part A: Particulars of the Applicant | 1 to 6 | Name, address, Permanent Account Number, e-mail identity, contact number, tax year |
| Part B: Details of regular income | 7 to 10 | Amount of regular income; application for charitable or religious purposes in India as per section 341(1) to (4); the amount of regular income for which the option under section 341(5) is exercised; reasons for exercising the option, split into (i) income not received during the tax year and (ii) any other reasons |
| Part C: Exercise of Option | declaration | The signatory states, on behalf of the named registered non-profit organisation with its PAN, that it wishes to exercise the option under section 341(7) for a stated amount, to be treated as deemed application under section 341(5), for the reasons in Part B |
The Notes say that the form is applied to the Assessing Officer and signed by a trustee or principal officer (Note 3); that regular income is computed as per section 335 (Note 4); that the amount for which the option is exercised is treated as deemed application under section 341(5) (Note 5) and may be applied as per section 341(6) (Note 6); that some information is pre-filled; and that amounts are in rupees.
Form 109: statement of accumulation or setting apart of income
Rule 185 requires the statement under section 342(1) in Form 109, on or before the due date under section 263(1), furnished electronically under digital signature or electronic verification code. Part A is the same particulars block (rows 1 to 6, with tax year).
Part B, "Details of Accumulation", has three rows:
- Serial number 7, accumulation for the tax year: the purpose for which the amount is accumulated, the amount, the period (starting and ending tax year) and the date of the resolution passed by the Trustee, Governing Body or Managing Committee.
- Serial number 8, status for preceding tax years: the tax year of accumulation, the date of filing Form 109, the amount accumulated, the tax year up to which it is accumulated, the amount applied up to the end of the current tax year, the amount remaining for application, and the amount of accumulation treated as specified income as per section 337 (Table: serial number 8). Under Note 3, a separate row is filled for each tax year of accumulation.
- Serial number 9, non-application due to an order or injunction of any court: the tax year of accumulation, the amount, the tax year or years of non-application and the details of the order or injunction.
The form closes with place, date, signature, name and designation; there is no separate verification paragraph. Under Note 5, "accumulation" means accumulation or setting apart of regular income. Notes 4, 6 and 7 repeat the Assessing Officer, pre-fill and rupee notes.
Form 110: change of purpose of accumulation
Rule 186(1) allows a registered non-profit organisation that has accumulated or set apart regular income under section 342(1) to request the Assessing Officer to change the purpose by applying in Form 110. Under rule 186(2) the form is furnished electronically (digital signature if the return must be furnished under digital signature, otherwise electronic verification code) and verified by the person authorised to verify the return of income under section 265. Under rule 186(3) the Assessing Officer may, subject to section 342(2), allow the income to be applied for other charitable or religious purposes in India in conformity with the objects, in Form 111. Form 111 is an order of the Assessing Officer and is not described here beyond that.
Part A carries rows 1 to 5 (name, address, PAN, e-mail identity and contact number). Part B is a single table at serial number 6, headed "Details of amount accumulated or set apart and proposed change in purpose", in two blocks.
| Block | Columns (letters as printed) |
|---|---|
| As per Form 109 | B tax year of accumulation or setting apart; C date of filing Form 109; D acknowledgement number; E ending tax year; F amount accumulated or set apart; G amount that remains unapplied |
| Proposed change | H amount for which change of purpose is requested (it cannot be greater than the amount in column G); I original purpose; J new purpose; K date of resolution passed by the trustee, governing body or managing committee; L reason for change of accumulation |
Column A is the serial number. The column heads are printed broken word by word in the copy; they are rebuilt here from the column letters.
The Verification states that, as far as the signatory knows and believes, the information is correct and complete and in accordance with the provisions of the Act, and that the signatory makes it in the stated designation and is competent to do so. The Notes repeat the Assessing Officer, pre-fill and rupee points.
Comparing the three
| Form 108 | Form 109 | Form 110 | |
|---|---|---|---|
| Section | 341(7) | 342(1) | 342(5) |
| Rule | 184 | 185 | 186 |
| Time limit printed | on or before the due date under section 263(1) | on or before the due date under section 263(1) | none in the rule |
| Parts | A, B, C | A, B | A, B, Verification |
Need help with accumulation and application of income?
The choice between applying, accumulating and electing deemed application should be made before the due date, and the resolutions must match the numbers in these forms. Our 12A, 80G and CSR registration desk can help check the workings and the sequence of filings for your organisation.
Key takeaways
- Form 108: option for deemed application, with reasons, under section 341(7).
- Form 109: purpose, amount, period and resolution date of each accumulation, plus the status of earlier years and any court-ordered non-application.
- Form 110: change of purpose, linked by column to the earlier Form 109 filing.
- Forms 108 and 109 are tied to the due date under section 263(1); Form 110 has no time limit in rule 186.
Read next
- Form 105: application for registration of a non-profit organisation
- Form 112: audit report of a registered non-profit organisation, Parts A and B and Schedules A to R
- Forms 113 and 114: statement of donations and certificate of donation
- Rules 184 and 185
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.