Income Tax Act 2025: Section 333 for Tax Year 2026-27

Switching over of regimes

[Section-333 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 333(1) of Income Tax Act 2025

333(1) Nothing contained in section 11, other than Schedule II (Table: Sl. No. 1), Schedule III (Table: Sl. Nos. 27 to 29 and 36) and Schedule VII (Table: Sl. Nos. 10 to 19 and 42 to 45), shall exclude any income of a registered non-profit organisation from its total income for any tax year.

Section 333(2) of Income Tax Act 2025

333(2) The registration under section 332 shall cease to operate from the date on which the registered non-profit organisation is notified as specified in Schedule III (Table: Sl. No. 27, 28, 29 or 36) or Schedule VII (Table: Sl. No. 42), or from the 1st day of April of the tax year for a registered non-profit organisation which claims exemption under Schedule VII (Table: Sl. No. 43, 44 or 45).

Section 333(3) of Income Tax Act 2025

333(3) A person, whose registration ceases to operate under sub-section (2), may apply for registration under section 332 subject to the condition that the notification granting exemption to such person under Schedule III (Table: Sl. No. 27, 28, 29 or 36) or Schedule VII (Table: Sl. No. 42) ceases to have effect from the date on which the said registration is granted and thereafter shall not be entitled to exemption under the respective serial numbers of the said Schedules.

FAQs on Section 333 of Income Tax Act 2025

What is the effect of Section 333(1) on exemption of income for registered non-profit organisations?
Section 333(1) overrides the general exemption under Section 11, stating that income of a registered non-profit organisation is not excluded from total income unless the exemption falls under the specified entries of Schedule II (Sl. No. 1), Schedule III (Sl. Nos. 27 to 29 and 36), or Schedule VII (Sl. Nos. 10 to 19 and 42 to 45).

When does the registration under Section 332 cease to operate as per Section 333(2)?
Registration under Section 332 ceases either from the date of notification under Schedule III (Sl. No. 27, 28, 29 or 36) or Schedule VII (Sl. No. 42), or from the 1st day of April of the tax year if the organisation claims exemption under Schedule VII (Sl. No. 43, 44 or 45).

What happens when registration under Section 332 ceases under Section 333(2)?
When registration ceases, the non-profit organisation is no longer treated as registered under Section 332 and loses eligibility for exemptions under that registration from the effective date specified.

Can a person whose registration has ceased under Section 333(2) reapply for registration under Section 332?
Yes, such a person may apply for fresh registration under Section 332, but the condition is that the earlier notification granting exemption under the relevant Schedule entries must cease to be effective from the date of new registration.

Will the person be eligible for exemption under the Schedule items after re-registration under Section 332?
No, once re-registered under Section 332, the person shall not be entitled to claim exemption under the respective serial numbers of Schedule III (Sl. No. 27, 28, 29, or 36) or Schedule VII (Sl. No. 42).

What is the rationale for switching regimes under Section 333?
Section 333 governs situations where a registered non-profit organisation transitions between exemption regimes—moving either from a registered status under Section 332 to specified Schedule-based exemptions or vice versa—ensuring that dual benefits are not availed.

Is dual benefit of registration and Schedule-based exemption allowed under the Act?
No, Section 333 prohibits dual benefit. An organisation must choose one regime—either exemption under specified Schedules or registration under Section 332, not both concurrently.