Income Tax Act 2025: Section 336 for Tax Year 2025-26

A non-profit’s taxable income is nil if 85%+ is used/accumulated for charity; otherwise, 85% of income minus charitable use is taxable.

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Taxable regular income

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

The taxable regular income of a registered non-profit organisation for any tax year shall be––

(a) nil, where 85% or more of the regular income for such tax year has been applied or accumulated under section 342 for charitable or religious purposes, in such tax year as per the provisions of this Part; and

(b) in any other case, 85% of the regular income for such tax year as reduced by its application for charitable or religious purposes or accumulation thereof under section 342 in such tax year as per the provisions of this Part.


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