The Income Tax Act, 2025 classifies registered NPOs into “Small” & “Large” NPOs
The Income Tax Act, 2025 introduces a formal classification of registered NPOs into “Small Registered NPOs” and “Large Registered NPOs”.
Under the new regime, an NPO is classified as a Large Registered NPO if any one of the following conditions is satisfied:
- Regular income under section 335 exceeds ? 5 crores; or
- Foreign contribution received during the tax year exceeds ? 10 lakhs; or
- Application of income outside India exceeds ? 10 lakhs.
However, an NPO is classified as a Small Registered NPO where none of the above conditions is satisfied.
This classification determines the reporting requirements and schedules applicable under Form 112 (Tax Audit Report).
