Comparison of section 353 "Other violations." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....partment. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause/Section 353 operates in the field of the Income-tax legislation and cross-refers expressly to sections 334, 338, 346, 347, 348, 349 and 35(b)(i). Context: The provision addresses "other violations" by registered non-profit organisations and prescribes tax treatment where certain compliance failures or prohibited activities occur during a tax year. Coverage: registered non-profit organisations that (a) fail to maintain books u/s 347, (b) fail to get books audited u/s 348, (c) fail to furnish returns u/s 349, or (d) carry out a commercial activity in contravention of section 346 while carrying out advancement of other object(s) ....

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....ans, depreciation claims limitations, not contributions to persons, payments contravening section 36 subsections, and allowance u/s 35(b)(i)). * Sub-section (4) (Act) - No other set off/deduction: The Act explicitly provides that no set off or deduction or allowance other than those in sub-section (3) shall be allowed. Interpretation The textual design shows a legislative intent to impose tax consequences on non-profits that either fail procedural compliance (books, audit, return) or cross statutory activity boundaries (commercial activity contravening section 346). The provision converts "regular income" into taxable regular income in such years, while permitting a narrow catalogue of expenditure to reduce the taxable amount. The separ....

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....tated in the document: specific tax rate or computation mechanics u/s 334. * Hypothetical 2: A registered non-profit carries out a commercial activity contravening section 346 and earns income from that activity that is classified as specified income. If that specified income is not covered by sub-section (1), sub-section (2) renders it chargeable u/s 334 irrespective of section 338. Not stated in the document: how specified/residual incomes are to be apportioned for mixed activities. Interplay The text expressly interacts with sections 334 (chargeability of tax), 338 (excluded or special treatment), 346 (commercial activity limits), 347-349 (obligations on books/audit/return), 35(b)(i) (allowability of particular payments), and 36(4)-(....

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....x referred to in sub-section (1), the specified income and residual income ... shall also be chargeable ... to the extent not covered ... and the provisions of section 338 shall not apply." The Act states: "Irrespective of the provisions of section 338, any the specified income and residual income ... which is not included in sub-section (1) shall also be chargeable ..." * Practical impact: Both aim to subject specified and residual incomes to tax in addition to sub-section (1) amounts and to neutralise section 338, but the Act's phrasing places a direct emphasis on disregarding section 338; the functional result appears substantially similar, though drafting differences could influence interpretive emphasis in disputes. * Minor dra....