Rule 185 — Furnishing of statement by registered non-profit organisation under section 342(1) for accumulating or setting apart any part of its regular income. Made under s.342, s.263 of the Income-tax Act, 2025.
Rule 185 gives effect to Section 342 and Section 263 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.
Sub-rule (1) requires the statement to be furnished to the Assessing Officer under section 342(1) to be furnished in Form No. 109, on or before the due date specified under section 263(1) for furnishing the return of income.
Sub-rule (2) requires the statement in Form No. 109 to be furnished electronically, either under digital signature or electronic verification code.
Section 342(1) lets a registered non-profit organisation accumulate or set apart part of its regular income instead of applying it, on giving a statement, but does not prescribe the form, the date or the mode. The rule ties the statement to the return due date, so the accumulation is declared no later than the income it relates to is reported.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Time for furnishing the statement | On or before the due date specified under section 263(1) for furnishing the return of income | Applies to the Form No. 109 statement under section 342(1) | Rule 185(1) |
The date is the return due date under section 263(1), not the date of the accumulation or of the general body resolution behind it, and sub-rule (1) says on or before, so the statement can be filed earlier but not later. Sub-rule (2) leaves no paper route: the statement must be furnished electronically under digital signature or electronic verification code. The rule prescribes the statement only — the conditions on which income may be accumulated or set apart, and what happens if it is not applied, remain with section 342.
A registered non-profit organisation decides to set apart part of its regular income for a building project. It furnishes Form No. 109 to its Assessing Officer electronically, under electronic verification code, on or before the section 263(1) due date for its return for that tax year.
The organisation meets it as an annual electronic filing alongside its return. It surfaces again if the Assessing Officer questions an accumulation and looks for the Form No. 109 that should have preceded the due date.
The statement to be furnished to the Assessing Officer under section 342(1) shall be furnished in Form No. 109 on or before the due date specified under section 263(1) for furnishing the return of income.
The statement in Form No. 109 shall be furnished electronically, either under digital signature or electronic verification code.
