Section 341 - Application of income

Application of income requirement for registered non profits mandates a specified portion of regular income be applied or deemed applied.

Section 341 allows as application of income amounts applied by a registered non profit for its charitable or religious purposes in India when paid during the tax year, and a prescribed portion of donations to other registered non profits. It treats timely reinvestment of corpus or repayment of loans within five years (subject to post March thirty first, twenty twenty one timing and no prior violations) as application. The section disallows depreciation on assets already claimed as application, carryforward of excess application, and corpus donations to other non profits, and permits an option to treat shortfalls as deemed application subject to filing deadlines. Certain capital gains reinvested in replacement assets for charitable purposes are also deemed application.