Tax on income of registered non-profit organisation - Section 334 (New) / 115BBI (Old)

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.... - Computation of Income-tax Section 334(1) provides that the income-tax payable by a registered non-profit organisation on its total income for any tax year shall be the aggregate of two components. Section 334(1)(a) - Tax on Specified Income Income-tax shall be calculated at the rate of 30% on the specified income of the registered non-profit organisation for the relevant tax year. T....

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....specified amounts. Section 334(1)(b) - Tax on Taxable Regular Income and Residual Income The second component of tax under section 334(1) is the amount calculated at the rate applicable to: • taxable regular income; and • any residual income for the relevant tax year under the other provisions of the Income-tax Act, 2025. The concept of regular income is s....

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....tions contained in section 336. Therefore, section 334(1)(b) operates together with sections 335 and 336 for determining the taxable portion of regular income. Section 334(2) - Overriding Effect Section 334(2) provides that the provisions of the Chapter relating to registered non-profit organisations shall apply notwithstanding anything contrary contained in any other provision of the Inc....

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....37 consolidates the categories of specified income into a single table, and section 334(1)(a) applies the 30% rate to such income. Tax on remaining taxable income Income not exempt under sections 11 and 12 is taxable under the applicable provisions of the Act. Section 334(1)(b) taxes taxable regular income and residual income at the rates applicable under the other provisions of ....