The Union Budget 2026 sets the tone for the transition to the new NGO taxation framework under the Income-tax Act, 2025, bringing greater clarity and compliance relief for trusts and NGOs. The key highlights include:
▸Tax-neutral mergers between registered NPOs with similar objects
▸Commercial activities no longer a ground for registration cancellation in specified cases
▸Registration requirement narrowed for claiming exemptions
▸Belated returns permitted with continued exemption benefits
