Section 332 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.
Section 332 decides who may apply to become a registered non-profit organisation, what the applicant must be, when the application must be made, how long the Principal Commissioner or Commissioner has to decide it, and how long the registration lasts. This article explains it as per the Income-tax Act, 2025 as amended by the Finance Act, 2026; later amendments, rules and notifications should be checked separately.
Section 332(1) lists the persons who may apply: public trusts, societies, section 8 companies, universities and educational institutions, Government-financed institutions, persons named in the Schedule entries it cites, and any person notified by the Board. Section 332(3) fixes, in a seven-row Table, when to apply, how long the order may take and how long registration is valid (three tax years for the first case, five for the others). The Finance Act, 2026 substituted the Schedule VII reference in section 332(1)(f) from 1 April 2026.
Section 332(1): who may apply
The persons who "may, for claiming benefits under this Part as a registered non-profit organisation, make an application for registration" to the Principal Commissioner or Commissioner, in the form and manner prescribed, are:
| Clause | Person |
|---|---|
| (a) | A public trust |
| (b) | A society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law in force in India |
| (c) | A company registered under section 8 of the Companies Act, 2013 (18 of 2013), or a company 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 |
| (d) | A University established by law or any other educational institution affiliated thereto or recognised by the Government |
| (e) | An institution financed wholly or in part by the Government or a local authority |
| (f) | Any person referred to in Schedule III (serial numbers 27 to 29 and 36) and in Schedule VII (serial numbers 17 to 19) and (serial number 42) |
| (g) | Any other person notified by the Board in this behalf |
The Companies Act and Societies Registration Act references are quoted as printed; check those laws separately. Clause (f) was affected by the Finance Act, 2026: the words "Schedule VII (serial numbers 17 to 19)" were substituted for the reference to serial numbers 10 to 19 of Schedule VII, w.e.f. 1-4-2026, as the footnote prints. Our article on Schedule III covers the Schedule III entries.
If you are setting up or regularising a trust, our 12A, 80G and CSR registration service handles the application and follow-up.
Section 332(2): who is eligible
A person in sub-section (1) is eligible only if:
- (a) it is constituted, 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) its properties are held for the benefit of the general public under an irrevocable trust, either (i) wholly for charitable or religious purposes in India, or (ii) partly for charitable or religious purposes in India, if the person was constituted, registered or incorporated before the commencement of the Income-tax Act, 1961 (43 of 1961).
The 1961 Act is mentioned here only because the section prints it.
Section 332(3): the Table of seven cases
Every application must be made to the Principal Commissioner or Commissioner within the time in column C, who passes an order within the time in column D, and registration, if granted, is valid for the period in column E.
| Serial number | Case | Time to apply | Time to pass order | Validity |
|---|---|---|---|---|
| 1 | Activities not commenced and not registered under any specified provision before the application | At any time during the tax year beginning from which registration is sought | One month from the end of the month in which application is made | Three tax years commencing from the tax year in which the application is made |
| 2 | Activities commenced and not registered under any specified provision before the application | At any time during the tax year beginning from which registration is sought | Six months from the end of the quarter in which application is made | Five tax years commencing from the tax year in which the application is made |
| 3 | Provisional registration granted and activities commenced | Within six months of the commencement of activities | Six months from the end of the quarter | Five tax years commencing from the tax year in which the application is made |
| 4 | Provisional registration due to expire and activities not commenced | At least six months before the expiry of the provisional registration | Six months from the end of the quarter | Five tax years following the tax year in which the application is made |
| 5 | Registration due to expire, other than serial number 4 | At least six months before the expiry of the registration | Six months from the end of the quarter | Five tax years following the tax year in which the application is made |
| 6 | Registration inoperative due to switching over of regime under section 333 | At any time during the tax year beginning from which the registration is sought to be made operative | Six months from the end of the quarter | Five tax years commencing from the tax year in which the application is made |
| 7 | Registered organisation has adopted or undertaken modification of objects which do not conform to the conditions of registration | Within thirty days of the date of such adoption or modification | Six months from the end of the quarter | Five tax years commencing from the commencement of the tax year in which the application is made |
Regime switching is dealt with in our article on sections 333 to 336.
Section 332(4) to (6): delay, longer validity and the consequence of missing the date
- (4) Condonation. If the application is made late, the Principal Commissioner or Commissioner may condone the delay if he considers there is reasonable cause, and the application is deemed to be in time.
- (5) Ten years instead of five. For applications at serial numbers 3 to 7, if the applicant's total income, without giving effect to this Part, does not exceed five crore rupees during each of the two tax years preceding the tax year of application, the words "five years" in column E are read as "ten years".
- (6) Tax on accreted income. If an application at serial number 3, 4, 5 or 7 is not made in the time of column C and the delay is not condoned under sub-section (4), the person is liable to tax on accreted income under section 352. See section 352 on accreted income.
Section 332(7) to (10): the inquiry, the order and old registrations
For applications at serial numbers 2 to 7 the Principal Commissioner or Commissioner may call for documents or information and make inquiries to satisfy himself about the genuineness of activities and compliance with requirements of any other law that are material to achieving the objects. If satisfied he passes a written order granting registration. If not, after giving a reasonable opportunity of being heard, he passes a written order rejecting the application (serial numbers 2 and 6), or rejecting it and also cancelling the registration (serial numbers 3, 4, 5 and 7), and sends a copy to the applicant and the Assessing Officer.
For serial number 1, sub-section (8) says he shall grant provisional registration.
Sub-section (9) covers a registration granted before 1 April 2021 under the specified provision of the 1961 Act that has expired: on an application under this Part he may, if he considers there is reasonable cause for delay, condone it and grant registration within three months from the end of the month of application, valid for five years from the commencement of the tax year 2021-2022. Sub-section (10) leaves the form and manner of the orders to the rules.
Worked example
Asha Education Trust, an invented public trust, has been registered and its registration will expire; this is the case at serial number 5. All figures below are assumed except the periods printed in the Act.
- It must apply at least six months before the registration expires.
- The order is due within six months from the end of the quarter in which it applies.
- Its total income without giving effect to this Part was Rs. 3,50,00,000 in each of the two preceding tax years. That does not exceed five crore rupees, so under sub-section (5) the validity of ten tax years applies instead of five.
- If the trust missed the date and the delay is not condoned, section 332(6) makes it liable to tax on accreted income under section 352.
Common mistakes
- Applying in the wrong Table row. The time limit depends on the case.
- Assuming the first-time case gets five years; serial number 1 gives three tax years.
- Waiting for the last month before expiry. Serial numbers 4 and 5 require an application at least six months earlier.
- Overlooking sub-section (6) and the tax on accreted income.
Need help with registration?
Choosing the right row of the Table, preparing the application and tracking the order are practical steps. Our 12A, 80G and CSR registration team can help you decide where your organisation stands.
Key takeaways
- Seven classes of person may apply under section 332(1).
- The Table in section 332(3) sets the time to apply, the time for the order and the validity.
- Serial number 1 gives provisional registration for three tax years; others give five, or ten where sub-section (5) applies.
- Missing the date without condonation can lead to tax on accreted income under section 352.
Read next
- Sections 333 to 336: switching of regimes and regular income of a registered non-profit organisation
- Section 337: specified income of a registered non-profit organisation
- Sections 351 to 353: specified violation and other violations
- Sections 354 and 354A: approval for donation deduction and merger
- Section 355: definitions for registered non-profit organisations
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.