Form No. 106 – Frequently Asked Questions

Form for passing of order for provisional registration u/s 332 or provisional approval u/s 354 or for Rejection of application

Name of form as per I.T. Rules, 1962	Form No. 10AC	Name of form as per I.T. Rules, 2026	Form No. 106
Corresponding section of I.T. Act, 1961	Section 12AB 80G(5)(vi)	Corresponding section of I.T. Act, 2025	332(8) 354 (4)
Corresponding Rule of I.T. Rules, 1962	11AA,17A	Corresponding Rule of I.T. Rules, 2026	181

1: What is Form No. 106 ?

Ans: Form No. 106 is an order passed by Commissioner of Income Tax (CPC) for granting of provisional registration or provisional approval or for rejection of application, after receipt of application in Form No. 104.

2: What are the time lines for passing of order for provisional registration/ provisional approval in Form No. 106:

Ans: The order in Form No. 106 is required to be passed by CIT, CPC within one month from the end of the month in which application is made.

3: What is the validity of the order passed in Form No. 106?

Ans: In all cases the validity of provision registration/approval is 3 tax years or upto 6 months from the commencement of activities, which ever is earlier, commencing from the tax year in which such application is made.

4: What happens after an order in Form No. 106 is passed ?

Answer: Once an order in Form No. 106 is passed the following outcomes may occur:

(i) Granting of provisional registration/approval: On receipt of an application in Form No. 104, the Commissioner of Income Tax (CPC), shall pass an order in writing in Form No.106, issuing a 16 digit alphanumeric Unique Registration Number (URN) and granting provisional registration under section 332(8) or granting provisional approval under section 354(4) or both where the activities of the applicant have not commenced and it has not been registered under any specified provision at any time before making the application;

(ii) Cancellation of provisional registration/approval : The registration or approval granted in Form No. 106 and Unique Registration Number (URN), may be cancelled by the jurisdictional Principal Commissioner or Commissioner after providing an opportunity of being heard to the applicant, if, at any point of time it is noticed that Form No. 104,-

(a) contains any false or incorrect information; or

(b) does not comply with the requirements of being furnished electronically under a digital signature or through an electronic verification code or without verification by the person who is authorised to verify the return of income, as applicable to the applicant.

Such registration or approval or URN shall be considered to have never been granted or issued.

Provisional registration and approval under income tax rules require timely orders, a unique registration number, and compliance with filing requirements. Provisional registration or provisional approval is granted through Form No. 106 after receipt of Form No. 104, with an order to be passed within one month from the end of the month of application. The provisional status remains valid for three tax years or up to six months from commencement of activities, whichever is earlier. The order issues a 16-digit Unique Registration Number and may later be cancelled after hearing if the application contains false or incorrect information or fails electronic filing and verification requirements.