The Statutory Brief

IT Act 1961 → 2025 / Sections 2(15) proviso, 12AC, 13A, 13B, 80G(5), 115TE, 115TF

Charitable trusts

Sections 2(15) proviso, 12AC, 13A, 13B, 80G(5), 115TE, 115TF → Sections 12, 332–355

Commercial activity limit, trust mergers, political parties and electoral trusts, 80G approval, accreted income tax

Sections 2(15) proviso, 12AC, 13A, 13B, 80G(5), 115TE, 115TF of the old Income-tax Act, 1961 · new sections 12, 332–355 under the Income-tax Act, 2025

New reference Sections 332 to 355 (registered non-profit organisations) and 12

Income-tax Act, 1961Sections 2(15) proviso, 12AC, 13A, 13B, 80G(5), 115TE, 115TF

  • Proviso to 2(15): limit on commercial receipts of general public utility trusts
  • 12AC: merger of trusts; 115TD–115TF: tax on accreted income
  • 80G(5): approval of institutions for donor deduction
  • 13A, 13B: political parties and electoral trusts

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Sections 332 to 355 (registered non-profit organisations) and 12

  • 346: restriction on commercial activities of registered non-profit organisations
  • 352: tax on accreted income, including mergers (Table S.No. 8, substituted by FA 2026)
  • 354: approval for donations (old 80G(5)) and provisional approval
  • 12 and Schedule VIII: political parties and electoral trusts

Applies from tax year 2026-27 (from 1 April 2026).

Section-by-section mapping (8 sections)

1961 ActSubject2025 Act
2(15)(Proviso)Charitable purpose — limit on commercial activity (proviso to 2(15))346
12ACMerger of charitable trusts352(4) Table S.No. 8
13APolitical parties' income12 and Schedule VIII
13BElectoral trusts' voluntary contributions12 and Schedule VIII
80G(5)Approval of institutions for 80G donations354(1)
80G(5)(Proviso)Provisional approval for 80G354(2)
115TEInterest on accreted income tax not paid352
115TFTrust deemed assessee in default for accreted income tax352

Source: CBDT mapping of sections, Income-tax Act 1961 to Income-tax Act 2025.

What changed

Consolidated into a single chapter for registered non-profit organisations; donor-side approval sits with the trust provisions in section 354. Finance Act 2026 widened the merger trigger in section 352 (Table S.No. 8).

Practice notes

  • Sections 11, 12A, 12AB, 13, 115TD and 80G have their own pages.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 2(15)(Proviso) called in the new Income-tax Act, 2025?

Section 2(15)(Proviso) of the Income-tax Act, 1961 (Charitable purpose — limit on commercial activity (proviso to 2(15))) corresponds to section 346 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 12AC called in the new Income-tax Act, 2025?

Section 12AC of the Income-tax Act, 1961 (Merger of charitable trusts) corresponds to section 352(4) Table S.No. 8 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 13A called in the new Income-tax Act, 2025?

Section 13A of the Income-tax Act, 1961 (Political parties' income) corresponds to section 12 and Schedule VIII of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 13B called in the new Income-tax Act, 2025?

Section 13B of the Income-tax Act, 1961 (Electoral trusts' voluntary contributions) corresponds to section 12 and Schedule VIII of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 80G(5) called in the new Income-tax Act, 2025?

Section 80G(5) of the Income-tax Act, 1961 (Approval of institutions for 80G donations) corresponds to section 354(1) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 80G(5)(Proviso) called in the new Income-tax Act, 2025?

Section 80G(5)(Proviso) of the Income-tax Act, 1961 (Provisional approval for 80G) corresponds to section 354(2) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in Sections 2(15) proviso, 12AC, 13A, 13B, 80G(5), 115TE, 115TF under the new Income Tax Act?

Consolidated into a single chapter for registered non-profit organisations; donor-side approval sits with the trust provisions in section 354. Finance Act 2026 widened the merger trigger in section 352 (Table S.No. 8).

Related sections

11→336Exemption for charitable and religious trusts: the 85% application rule12A / 12AB→332Registration of charitable trusts and institutions13→351When trust exemption is lost: specified violations and benefit to interested persons115TD→352Exit tax on accreted income of charitable trusts80G→133Deduction for donations to approved funds and charitable institutions