Form 108 under the Income-tax Act, 2025 is a mandatory statement for registered non-profit organisations to exercise the option under section 341(7) when they are unable to apply 85% of their income due to non-receipt of funds during the relevant tax year. By filing this form, such shortfall can be treated as deemed application of income under section 341(5), thereby preserving tax exemption benefits. The form must be filed electronically before the due date of filing the return of income, failing which the exemption benefit is lost and the income becomes taxable. It requires details of the income shortfall and reasons for non-application. Once submitted, the form cannot be revised, and a valid PAN is mandatory. This provision ensures flexibility for non-profits facing timing mismatches in income receipt while maintaining strict compliance timelines and procedural discipline.
Income Tax Department
Ministry of Finance, Government of India
FAQs on Income Tax Form 108: Exercise of option under section 341(7) of Income tax Act 2025 in respect of in respect of amount applied for charitable or religious purposes
Form 108 — Frequently Asked Questions
Form of exercise of option under section 341(7) of the Income-tax Act, 2025
| Name of form as per I.T. Rules, 1962 | Form 9A | Name of form as per I.T. Rules, 2026 | FN 108 |
| Corresponding section of I.T. Act, 1961 | Explanation to sub-section (1) of section 11 | Corresponding section of I.T. Act, 2025 | 341(7) |
| Corresponding Rule of I.T. Rules, 1962 | 17(1) | Corresponding Rule of I.T. Rules, 2026 | RN 184(1) |
Q1. What is FN 108?
Ans: FN 108 is a statement to be furnished electronically/digitally by a registered non-profit organisation that could not apply 85% of its income due to non-receipt of such income during the relevant tax year and is willing to exercise option u/s 341(7) of the I.T. Act,2025 for such amount to be treated as deemed application as per 341(5) of the I.T. Act,2025
Q2. Who should file FN 108?
Ans: Any registered non-profit organisation willing to exercise option to make claim in respect of shortfall in application of income as deemed application in accordance with provisions of section 341(5) of the IT Act,2025 is required to file FN 108.
Q3. Is FN 108 mandatory?
Ans: FN 108 is mandatory for registered non-profit organisation to claim shortfall of application of income as deemed application in accordance with provisions of section 341(5) of the IT Act,2025.
Q4. What is the time limit for filing FN 108?
Ans: FN 108 is required to be filed on or before the due date of filing of return of income for the concerned tax-year under section 263(1) of the IT Act, 2025.
Q5. Where can I file FN 108 and to which authority is it required to be furnished to ?
Ans: FN 108 is required to be furnished electronically to Commissioner of Income Tax (CPC) on the e-filing portal.
Q6. What happens after I file FN 108 ?
Ans: Upon successful filing of FN 108, the registered non-profit organisation may claim such reported amount of shortfall in application of income in FN 108 as deemed application in the return of income filed subsequently.
Q7. Can I edit FN 108 after submission?
Ans: No. Once FN 108 is submitted, it cannot be edited. Ensure all details are correct before submission.
Q8. While filling Part A of FN 108, can I leave PAN blank?
Ans: A valid PAN is mandatory for all applicants filling the form and FN 108 cannot be filed in absence of PAN.
Q9. Can FN 108 be filed offline?
Ans: No. FN 108 can only be submitted online through the Income Tax e-Filing portal.
Q10. Why is FN 108 important?
Ans: FN 108 is important to file within prescribed time limits as non-filing/ delayed filing shall result in losing the benefit of claiming exemption on account of deemed application of income thereby bringing such income to tax.
Guidance Note on Income Tax Form 108: Exercise of option under section 341(7) of Income tax Act 2025 in respect of in respect of amount applied for charitable or religious purposes
Form 108 – Filing of statement for option to be exercised in respect of deemed application as per 341(7) of the Income Tax Act,2025 (The Act)
Purpose:
Form 108 is a statement to be furnished electronically/digitally by a registered non-profit organisation willing to exercise option u/s 341(7) of the Act for an amount of regular income to be treated as deemed application as per 341(5) of the Act
Who Should File:
Any registered non-profit organisation willing to claim an amount of regular income as deemed application in accordance with provisions of section 341(5) of the Act.
The application in Form 108 is required to be furnished electronically on the e-filing portal.
Frequency & Due Dates:
| Frequency | Covered | Due Date for Filing |
| Annual | Tax-Year | Prior to due date of filing of return of income u/s 263(1) |
Structure of Form 108:
- Part A: Details/Computation of regular income in respect of which option is exercised
- Part B: Reasons for the shortfall in application for which option is exercised
Filing Count:
On average, 0.10 lakh Form No.9A ( now Form 108) were filed each year over the past five years.
What is the process flow of filing Form 108?
The process flow includes following steps
1. Computation of shortfall in application for which option is being exercised;
2. Reason for such shortfall in application of regular income
Outcome of Processed Form 108:
Registered non-profit organisation may claim such reported shortfall in application of regular income as deemed application in the return of income filed subsequently
Brief note on broad or qualitative changes proposed:
Simplification of already existing form in alignment with the Act
Challenges and Solutions:
NA
Common Changes made across Forms:
1. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
2. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.
