Income Tax Act 2025: Section 338 for Tax Year 2025-26

Section 338, Income Tax Act 2025: Excludes foreign-applied income & corpus donations from a registered NPO’s total income if criteria under Sec. 338 & 339 are met.

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Income not to be included in regular income

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

While computing the regular income of a registered non-profit organisation, the following income shall not be included:––

(a) income applied outside India, where the Board, by general or special order, directs that such income shall not be so included in its total income in case of a registered non-profit organisation––
(i) created before the 1st April, 1952 for charitable or religious purposes; or
(ii) created on or after the 1st April, 1952 for charitable purposes where such application of income outside India tends to promote international welfare in which India is interested;

(b) the corpus donation received by the registered non-profit organisation under section 339.


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