Income Tax Form 110: Application for Change in Purpose of NPO Income Accumulation

Form 110 (FN 110) is a newly introduced application under Section 342(5) of the Income-tax Act, 2025, enabling registered non-profit organisations to seek approval for changing the purpose of accumulated or set-apart income originally declared in Form 109. Filing FN 110 is mandatory where such modification is intended and must be done electronically on the income tax e-filing portal before the expiry of the permitted accumulation period. The application requires details of the original accumulation, proposed amendments, reasons for change, and an undertaking. It must be submitted to the Commissioner of Income Tax (CPC) and is subsequently reviewed by the jurisdictional Assessing Officer, who decides approval through a prescribed order. Once approved, the organisation can utilise the accumulated funds for the revised purpose. The form cannot be edited after submission and requires a valid PAN. FN 110 aims to streamline compliance and ensure proper regulatory oversight in modifying accumulation purposes.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form 110: Application for change of purpose of accumulation or setting apart of income by NPO under section 342(5) of Income Tax Act 2025

Application for change of purpose of accumulation or setting apart of income  under section 342(5) of the Income – tax Act 2025

Q1. What is FN 110 ?

Ans: FN 110 is an application to be furnished digitally/electronically seeking approval for the proposed amendment to the original purpose, as mentioned in FN 109 filed, for which the amount of income was accumulated/set-apart for a particular tax-year.

Q2.Who should file FN 110?

Ans: Any registered non-profit organisation opting to amend the purpose of accumulation/set-apart of any particular tax-year from the original purpose stated in FN 109 filed is required to file FN 110

Q3. Is FN 110 mandatory?

Ans: FN 110 is mandatory for those registered non-profit organisation who are opting to amend the purpose of accumulation/set-apart of any particular tax-year from the original purpose stated in FN 109 filed

Q4. What is the time limit for filing FN 110?

Ans: FN 110 is required to be filed as per the requirement whenever a change purpose of accumulation or set-apart is opted.

Q5: Where can I file FN 110 and to which authority is it required to be furnished to ?

Ans: FN 110 is required to be furnished electronically to Commissioner of Income Tax (CPC) on the e-filing portal and the same shall be made available to the jurisdictional Officer for approving or declining the application for change of purpose so proposed in FN 110.

Q6 : What happens after I file FN 110 ?

Ans: Upon successful filing of FN 110 and its subsequent acceptance by the jurisdictional Officer in FN 111, the registered non-profit organisation may utilize the amount so accumulated or set-apart towards the amended purpose as approved.

Q7. Can I edit FN 110 after submission?

Ans: No. Once FN 110 is submitted, it cannot be edited. Ensure all details are correct before submission.

Q8. While filling Part A of FN 110, can I leave PAN blank?

Ans: A valid PAN is mandatory for all applicants filling the form and FN 110 cannot be filed in absence of PAN.

Q9. Can FN 110 be filed offline?

Ans: No. FN 110 can only be submitted online through the Income Tax e-Filing portal.

Q10. Why is FN 110 important?

Ans: FN 110 is an important application to be made for making amendment to the purpose of utilizing the amount accumulated/ set-apart in FN 109.

Guidance Note on Income Tax Form 110: Application for change of purpose of accumulation or setting apart of income by NPO under section 342(5) of Income Tax Act 2025

FORM 110 – Online Application to be furnished in respect of amendment in respect of amount accumulated/set-apart in respect of a tax-year

Purpose:

FORM No.110 is an application to be furnished digitally/electronically/manually seeking approval for the proposed amendment to the original purpose for which the amount accumulated/ set-apart was accumulated/set-apart for a particular tax-year.

Who Should File:

Any registered non-profit organisation opting to amend the purpose of accumulation/set-apart of any particular tax-year from the original purpose stated in Form-109 filed in respect of such amount accumulated/set-apart.

The application in FORM No. 110 is required to be furnished electronically on the e-filing portal. Frequency & Due Dates:

Structure of FORM No.110:

> Details of Form-109 filed in respect of which the amendment to the objects is proposed

> Details of proposed amendment to the objects

Filing Count:

NIL as New Form 110 being introduced

What is the process flow of filing FORM 110?

The process flow includes following steps

1. Furnishing details of amount unapplied, out of the total amount accumulated/set-apart as per Form-108 filed

2. Furnishing details of proposed amendment and reasons seeking such amendment

3. Furnishing of an Undertaking

Outcome of Processed FORM 110:

The application shall be forwarded to/ received by the respective jurisdictional AO for the purpose of taking a decision in respect of such application filed and pass an order in new prescribed ITNS Form u/s 342(6).

Brief note on broad or qualitative changes proposed:

NIL as it’s a NEW FORM 110 prescribed

Challenges and Solutions:

It’s a new form prescribed for the purpose of registered non-profit organisation seeking change of purpose of accumulation/set-set-apart. The form has been tried to be simpler yet grasping required details for the purpose of decision making by the AO.

An ITNS form also has been designed separately for the decision by AO on the given application.

Common Changes made across Forms:

1. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.