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:
a) Regular income under section 335 exceeds INR 5 crores; or
b) Foreign contribution received during the tax year exceeds INR 10 lakhs; or
c) Application of income outside India exceeds INR10 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).