§ 338
Chapter XVII — Special Provisions Relating To Certain Persons
Income not to be included in regular income
Income-tax Act, 2025
When calculating a registered non‑profit's regular income, certain receipts are excluded. Income that is applied outside India can be exempt if the organization’s board orders it and the entity either was founded before 1 April 1952 for charitable or religious purposes, or was founded on/after that date for charitable purposes that promote international welfare of interest to India. Additionally, any corpus donation received under section 339 is also excluded.
📜 Official text of the section +
338. 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 pur -
poses; 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.
Corpus donation.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.