Form 108 – Filing of statement for option to be exercised in respect of deemed application as per 341(7) of the Income Tax Act, 2025 (The Act)

Purpose:

Form 108 is a statement to be furnished electronically/digitally by a registered non-profit organisation willing to exercise option u/s 341(7) of the Act for an amount of regular income to be treated as deemed application as per 341(5) of the Act

Who Should File:

Any registered non-profit organisation willing to claim an amount of regular income as deemed application in accordance with provisions of section 341(5) of the Act.

The application in Form 108 is required to be furnished electronically on the e-filing portal.

Frequency & Due Dates:

Frequency	Covered	Due Date for Filing
Annual	Tax-Year	Prior to due date of filing of return of income u/s 263(1)

Structure of Form 108:

⮚Part A: Details/Computation of regular income in respect of which option is exercised

⮚Part B: Reasons for the shortfall in application for which option is exercised

Filing Count:

On average, 0.10 lakh Form No.9A (now Form 108) were filed each year over the past five years.

What is the process flow of filing Form 108?

The process flow includes following steps

1. Computation of shortfall in application for which option is being exercised;

2. Reason for such shortfall in application of regular income

Outcome of Processed Form 108:

Registered non-profit organisation may claim such reported shortfall in application of regular income as deemed application in the return of income filed subsequently

Brief note on broad or qualitative changes proposed:

Simplification of already existing form in alignment with the Act

Challenges and Solutions:

NA

Common Changes made across Forms:

1. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
2. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.

Deemed application for non-profit income requires electronic filing of Form 108 before the return due date. Form 108 requires a registered non-profit organisation to electronically furnish a statement exercising the option under section 341(7) for treating regular income as deemed application under section 341(5). The annual filing is due before the return of income due date and covers computation of the shortfall in application and the reasons for that shortfall. A reported shortfall may be claimed as deemed application in the subsequent return of income.