Income Tax Act 2025: Section 349 for Tax Year 2026-27

Return of income

[Section-349 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Where the total income of a registered non-profit organisation, without giving effect to the provisions of this Part, exceeds the maximum amount which is not chargeable to income-tax in any tax year, it shall furnish the return of income for such tax year as per the provisions of section 263(1)(a)(iii), within the time limit allowed under sub-section (1)(b) of that section.

FAQs on Section 349 of Income Tax Act 2025

Who is required to file a return of income under Section 349?
A registered non-profit organisation is required to file a return of income if its total income, before giving effect to the provisions of this Part, exceeds the maximum amount not chargeable to income-tax in a tax year.

Does the income have to be calculated after applying exemptions or benefits under this Part?
No, the requirement to file a return is based on total income computed without giving effect to the provisions of this Part.

What is the reference to Section 263(1)(a)(iii) in this context?
The return of income must be furnished in accordance with Section 263(1)(a)(iii), which specifies the types of persons required to file a return.

What is the due date for filing the return of income under Section 349?
The return must be filed within the time limit allowed under Section 263(1)(b).

Does Section 349 apply to organisations that are not registered as non-profits?
No, Section 349 specifically applies only to registered non-profit organisations.

If the total income is below the threshold, does the non-profit still need to file a return?
No, if the total income before giving effect to the provisions of this Part does not exceed the basic exemption limit, filing a return under Section 349 is not mandatory.

Is there any penalty for failure to furnish a return under Section 349?
While Section 349 itself does not prescribe a penalty, failure to comply with the return filing obligation may attract penalties under other applicable provisions of the Act.

What is meant by ‘this Part’ in the context of Section 349?
‘This Part’ refers to the specific part of the Income Tax Act, 2025, under which Section 349 falls, which deals with the taxation and compliance framework for certain entities such as non-profit organisations.

Is electronic filing of return mandatory for registered non-profits under Section 349?
Section 349 does not specify the mode of filing, but the return must be furnished as per the procedure prescribed under Section 263, which may include electronic filing based on rules framed under that section.

Does the Act provide any relief or exemption for income derived by registered non-profits?
Reliefs or exemptions, if any, are not covered under Section 349 but may be available under other provisions of the Income Tax Act, 2025, and must be considered separately.