Commercial activities by non-profits face a revenue cap and mandatory separate accounting, tightening compliance and transparency.
Clause 346 of the Income Tax Bill, 2025 requires commercial activities by registered non-profit organisations to be directly related to charitable objectives, subjects receipts from such activities to a statutory revenue cap, and mandates separate accounting for those activities. This contrasts with Section 2(15) of the Income-tax Act, 1961, which conditions tax-exempt status on activities being integral to the charitable purpose and a similar receipts ceiling but lacks an explicit separate accounting requirement. The clause emphasizes transparency, documentation, and clearer compliance parameters.