Business undertaking held as property
[Section-344 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Where the property held by a registered non-profit organisation includes a business undertaking, and where a claim is made that the income of any such undertaking is eligible for benefits under this Part, then the Assessing Officer shall have the power to determine the income of such business undertaking as per the provisions of this Act.
FAQs on Section 344 of Income Tax Act 2025
What does Section 344 of the Income Tax Act, 2025 pertain to?
Section 344 deals with business undertakings held as property by a registered non-profit organisation.
Who can hold a business undertaking as property under this section?
Only registered non-profit organisations can hold a business undertaking as property for the purposes of this section.
What is the relevance of income from a business undertaking under this section?
If a non-profit organisation claims that the income from such business undertaking is eligible for benefits under the relevant part of the Act, then this section becomes applicable.
Who has the authority to assess the income from the business undertaking?
The Assessing Officer has the power to determine the income of such business undertaking.
How will the income of the business undertaking be determined?
The income will be determined as per the provisions of the Income Tax Act, 2025.
From when is Section 344 effective?
Section 344 is effective from 1st April, 2026.
Can a non-profit claim tax benefits on income from a business it holds as property?
Yes, but only if the Assessing Officer determines that the income qualifies under the provisions of the Act.
Does the section apply to all types of income of a non-profit organisation?
No, it specifically applies to income arising from a business undertaking held as property.
Is registration of the non-profit organisation mandatory to claim benefit under this section?
Yes, the organisation must be a registered non-profit to invoke the provisions of Section 344.
What happens if the Assessing Officer disagrees with the income reported by the organisation?
The Assessing Officer has the power to determine the actual income based on the Act’s provisions, which may differ from the organisation’s claims.
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