Corpus donation
[Section-339 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Corpus donation means any donation made with a specific direction by the donor that it shall form part of the corpus of the registered non-profit organisation where such donation is invested or deposited in any of the modes permitted under section 350 maintained specifically for such corpus.
FAQs on Section 339 of Income Tax Act 2025
What is a corpus donation under Section 339 of the Income Tax Act, 2025?
A corpus donation is a donation made with a specific direction by the donor that it shall form part of the corpus of the registered non-profit organisation.
Is a written direction from the donor necessary for a donation to be considered a corpus donation?
Yes, there must be a specific direction from the donor indicating that the donation is intended for the corpus.
Can any donation be treated as a corpus donation by the recipient organisation?
No, only donations accompanied by a specific direction from the donor to be treated as part of the corpus qualify as corpus donations.
Where must the corpus donation be invested or deposited?
Corpus donations must be invested or deposited in any of the modes permitted under section 350 of the Act, maintained specifically for such corpus.
Who can receive corpus donations?
Only registered non-profit organisations are eligible to receive corpus donations as defined under Section 339.
What is meant by ‘maintained specifically for such corpus’?
It means that the funds received as corpus donations must be held and accounted for separately from other funds and should be invested only in approved modes under section 350 for corpus purposes.
Are corpus donations considered income of the organisation for taxation purposes?
Corpus donations, when invested or deposited as per section 350, are typically not treated as income, but the organisation must comply with all relevant conditions under the Act.
Can a corpus donation be used for general operational expenses of the organisation?
No, corpus donations are meant to be retained as capital and cannot be used for general operational expenses unless otherwise allowed under specific provisions.
What happens if the corpus donation is not invested in the manner specified under section 350?
If not invested or deposited in the permitted modes under section 350, the corpus donation may not be treated as such, potentially affecting the tax-exempt status of the amount.
Is it necessary to maintain separate accounts for corpus donations?
Yes, organisations are expected to maintain separate accounts or records to track corpus donations and ensure compliance with investment conditions.
Can corpus donations be revoked by the donor later?
No, once given with a specific direction to form part of the corpus, the donation is considered capital of the organisation and cannot be revoked.
Can a corpus donation be made in kind, such as assets or property?
Section 339 does not explicitly restrict the form of corpus donations, but any non-cash donation must still comply with the requirement of a specific direction and proper accounting and valuation.
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