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

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.... the Income-tax Act, 2025 prescribes the manner in which the income-tax liability of a registered non-profit organisation is to be computed. It adopts a dual-component mechanism under which tax is calculated separately on specified income at a flat rate of 30%, while taxable regular income and residual income are taxed at the rates applicable under the other provisions of the Act. Section 334(1....

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....on; • income applied outside India in contravention of section 338; • investments or deposits made in contravention of section 350; • specified violations relating to corpus and accumulated income; • income applied for purposes other than charitable or religious purposes for which the organisation is registered; and • other....

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....345 and 346. Section 336 then determines the amount of taxable regular income. • Where 85% or more of regular income has been applied or accumulated in accordance with the provisions of the Act, taxable regular income is nil. In other cases, taxable regular income is determined as: 85% of regular income - application of income - permissible accumulation subject to the cond....

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....15BBC are separately taxable at the prescribed special rate. Section 334(1)(a) specifically provides for tax at 30% on specified income. Specified income Section 115BBI identifies various categories of income which lose exemption under sections 11/12 or otherwise become taxable at the special rate. Section 115BBC separately deals with specified anonymous donations. Section ....