Comparison of section 335 "Regular income." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ins are characterised for tax purposes and therefore affect taxpayers (registered non-profit organisations), the tax department, and advisors. Effective date or enactment status: Not stated in the document. Background & Scope Statutory hooks: Clause/Section 335 (as labelled) dealing with "Regular income" of a registered non-profit organisation. The Bill text (Document 2) provides the definition in the Bill's old version; Document 1 presents a Section 335 in the enacted Act form. Both texts concern the coverage of income/receipts that constitute the regular income of a registered non-profit organisation. Definitions beyond the clause text (e.g., definition of "registered non-profit organisation", "charitable or religious activity", or ....

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....dicating an intent to capture both types. The exclusion clause for commercial activities (i.e., activities restricted u/ss 345 and 346) shows a legislative design to permit some commercial activities while excluding others: the boundary is to be found in those cross-referenced sections. Legislative intent beyond the text (policy rationale, taxpayer burden relief, or revenue objectives) is Not stated in the document. Exceptions/Provisos The sole express exception in the Bill text is that receipts described in clause (b) exclude those specified in clause (d), i.e., receipts that are gains of commercial activity (clause (d)). Additionally, clause (d) itself excludes commercial activities that are restricted by sections 345 and 346. No other ....

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....nces Between the Section 335 as appearing in the Income-tax Act, 2025 (Document 1), and Clause 335 of the Income Tax Bill, 2025 - Old Version (Document 2) Principal textual and structural differences (comparison based strictly on the two supplied texts): * Terminology: Document 2 (Bill) uses "receipts"; Document 1 (Act) uses "income". * Practical impact: "Income" is a broader accounting/tax term than "receipts" and may incorporate notional gains or accruals, whereas "receipts" could be read more narrowly as cash or tangible receipts. The change may expand the taxable base or affect timing/recognition, depending on interpretation; the Bill does not itself explain the intended scope: Not stated in the document. * Property/Investme....

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.... impact: The Act expands cross-references (adds section 344) and shifts the framing from "other than restricted under 345 and 346" to "permissible under 344, 345 and 346". This could change the scope of permissible commercial activities and the point of reference for restriction/permissibility. Exact practical consequences require reading sections 344-346: Not stated in the document. * Capital/revenue qualification: Document 2 explicitly states "whether capital or revenue" for property/investment receipts; Document 1 omits that language. * Practical impact: Removal of the explicit "capital or revenue" qualification may create interpretive questions about capital receipts from property/investments; whether such receipts are regular incom....