Accumulated income of registered NPOs requires timely purpose-and-period disclosure, permitted investment or stated-purpose application, with controlled changes and dissolution transfers.

Section 342 permits a registered NPO to accumulate regular income for up to five years if it timely furnishes a prescribed statement identifying the purpose and period. The accumulated income must be invested or deposited in permitted modes or applied for the disclosed purpose. Transfers of accumulated income to another registered NPO are not treated as application of income. Court-imposed restrictions are excluded from the accumulation period. Permission may be sought to change the stated purpose, and, on dissolution, to apply accumulated income to another registered NPO.

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