The past few weeks have brought a significant shift in how the Income Tax framework applies to NGOs, a proposed overhaul of FCRA, and revised thresholds that affect routine compliance. Lets walkthrough the changes:
- Your organisation is now an RNPO
The Income Tax Rules 2026 came into force on 1 April 2026, replacing the Income Tax Rules 1962. Under the new rules, your organisation is no longer referred to as a charitable trust or institution for filing purposes — the official term is now Registered Non-Profit Organisation, or RNPO. Form numbers have changed across the board: registration applications, audit reports, donation certificates, TDS returns, and more. The forum has a navigation table mapping old form numbers to the new ones. View navigation table → - FCRA Amendment Bill 2026 is in Parliament
Three significant changes have been proposed. First, the definition of "key functionary" has been spelled out explicitly — covering directors, trustees, partners, office bearers, and anyone else with control over an organisation's affairs. Second, if an FCRA certificate is cancelled, surrendered, or lapses, all unutilised foreign contribution and FC-funded assets will vest provisionally with a Designated Authority, and permanently if fresh registration is not obtained within the prescribed period. Those assets may then be transferred to government departments or proceeds credited to the Consolidated Fund of India. Third, the maximum punishment for FCRA contraventions has been reduced from five years to one year. The bill and its implications are on the forum. Read it here → - PAN thresholds and SFT reporting — what changed from 1 April
The Income Tax Rules 2026 have revised the thresholds at which PAN must be furnished and at which specified entities must file a Statement of Financial Transactions. For organisations, the most relevant changes are around cash deposits and withdrawals: PAN is now mandatory if total deposits or withdrawals across all accounts exceed Rs 10 lakh in a financial year (earlier it was triggered by a single-day deposit of Rs 50,000). Property transactions now require PAN above Rs 20 lakh, up from Rs 10 lakh. SFT reporting thresholds for banks and other specified entities have also shifted. These will show up in your AIS. Full details →
Last chance to register for the Labour Law session
ISDM's Centre for Good Governance is hosting Session II of their Diagnostic Clinics series today, 17 April, from 3 to 5 pm on Zoom. The session covers Labour Law Codes, fixed-term contracts, retrenchment, consultant arrangements, and minimum standards on wages, leave, gratuity, and workplace safety. You can still submit a question in advance for a context-specific response.
Register and submit your query →
Best wishes,
Team PATTIC
PS: Please forward this email to colleagues and partner RNPOs who might benefit.