Regular income
[Section-335 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Regular income of any tax year of a registered non-profit organisation means––
- (a) receipts from any charitable or religious activity, for which it is registered, carried out by such registered non-profit organisation in such tax year;
- (b) receipts, other than those specified in clause (d), whether capital or revenue, derived from any property or investment held by such registered non-profit organisation in such tax year;
- (c) voluntary contributions received by such registered non-profit organisation in such tax year; and
- (d) gains of any commercial activity, other than the commercial activities restricted under sections 345 and 346, carried out by such registered non-profit organisation in such tax year, computed in such manner, as prescribed.
FAQs on Section 335 of Income Tax Act 2025
What is meant by ‘regular income’ for a registered non-profit organisation under the Income Tax Act, 2025?
Regular income refers to specific receipts and gains received by a registered non-profit organisation in a tax year from activities or sources aligned with its registered purpose.
Does regular income include receipts from charitable or religious activities?
Yes, receipts from any charitable or religious activity for which the organisation is registered are included in regular income.
Are income receipts from property or investments considered regular income?
Yes, receipts (whether capital or revenue) from any property or investment held by the registered non-profit organisation, except for those under clause (d), are included in regular income.
Are voluntary contributions part of regular income?
Yes, voluntary contributions received during the tax year are included in the regular income of the registered non-profit organisation.
Is income from commercial activities treated as regular income?
Yes, gains from commercial activities are included in regular income, provided such activities are not restricted under sections 345 and 346 of the Act and are computed in the prescribed manner.
Are capital receipts from investments considered regular income?
Yes, capital receipts derived from property or investments are part of regular income, excluding those falling under clause (d).
Does the nature of the receipt (capital or revenue) affect its classification as regular income?
No, both capital and revenue receipts from property or investment are included in regular income as long as they are not excluded under clause (d).
Are donations received by a registered non-profit organisation considered regular income?
Yes, all voluntary donations and contributions are considered regular income.
What are the exclusions from regular income under clause (d)?
Clause (d) excludes gains from commercial activities that are restricted under sections 345 and 346 of the Act.
How are gains from commercial activities computed for inclusion in regular income?
The computation must be done in the manner prescribed under the rules framed in accordance with the Act.
Can regular income include income from activities unrelated to the organisation’s registered purpose?
No, receipts from charitable or religious activities must be for the purpose for which the organisation is registered to be included in regular income.
Are gifts in kind considered part of regular income?
Only monetary voluntary contributions are explicitly covered; gifts in kind would be governed by specific rules or clarifications under the Act.
If a registered non-profit owns a commercial property, is rental income from it included in regular income?
Yes, rental income from property held by the organisation would fall under clause (b) and be considered regular income, unless it qualifies as restricted commercial activity under sections 345 or 346.
Does the Act specify how to differentiate between regular income and other income?
Yes, the Act defines regular income specifically under the listed four clauses, providing clarity on what constitutes it.
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