Rule 185: NPO accumulation statement in Form 109
Rule 185 prescribes Form 109 for the statement under section 342(1) when a registered non-profit organisation accumulates or sets apart regular income. It is furnished by the applicable section 263(1) return-filing due date, electronically with digital signature or EVC.
Official notified Income-tax Rules, 2026Need advice on Rule 185?
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Bare law
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
(1) 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.
(2) The statement in Form No. 109 shall be furnished electronically, either under digital signature or electronic verification code.
Rule breakdown
Identify the income and statutory accumulation
Check the requirements of section 342(1), the amount to be accumulated or set apart and the stated purpose. Maintain a computation that reconciles with the organisation’s records.
The form requirement does not replace the parent section’s substantive conditions.
Use Form 109 by the applicable due date
The statement is furnished to the Assessing Officer in Form 109 on or before the section 263(1) return due date. Use the current deadline applicable to the organisation.
Do not infer that a late return automatically shifts this separately expressed statement deadline.
Complete electronic verification and retain evidence
The statement is furnished electronically under digital signature or electronic verification code. Retain the actual submitted statement and acknowledgement.
Keep the accumulation schedule and later utilisation records aligned with the filed statement. A later change of purpose requires separate consideration under section 342 and Rule 186.
Key takeaways
Form 109
The statement concerns section 342(1) accumulation.
Due-date link
The applicable section 263(1) date controls.
Keep the utilisation trail
Reconcile future use with the filed purpose and statutory conditions.
Practical checklist
- Reconcile the accumulation amount and purpose.
- File and verify by the applicable due date.
- Retain the acknowledgement and utilisation records.
Avoid
- Do not assume filing the statement removes the substantive accumulation conditions.
FAQs
Is Form 109 the same as Form 108?
No. Form 109 is the accumulation statement under Rule 185; Form 108 is the separate deemed-application option under Rule 184.
Can the form be furnished through EVC?
Yes. The rule specifies electronic filing under digital signature or electronic verification code.
Glossary
- Form 109
- The statement prescribed for section 342(1) accumulation or setting apart of regular income.