Section 333

Section 333: switching over of regimes

Section 333 deals with an organisation moving between the Section 332 registration-based exemption regime and certain other notified exemption regimes (under specified entries of Schedule III or Schedule VII). It stops an organisation from claiming benefits under both regimes at the same time.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

General exemptions do not automatically apply

Sub-section (1): nothing in Section 11 - other than a specific set of entries in 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) - excludes any income of a registered non-profit organisation from its total income for that tax year.

When Section 332 registration ceases to operate

Sub-section (2): the registration granted under Section 332 ceases to operate from the date the registered non-profit organisation is notified under Schedule III (Table Sl. No. 27, 28, 29 or 36) or Schedule VII (Table Sl. No. 42), or from 1 April of the tax year for an organisation that claims exemption under Schedule VII (Table Sl. No. 43, 44 or 45).

Re-applying for registration under Section 332

Sub-section (3): a person whose Section 332 registration ceases to operate under sub-section (2) may apply for fresh registration under Section 332. If granted, the earlier notification granting exemption under the relevant Schedule III/Schedule VII entries ceases to have effect from the date the new registration is granted, and the organisation is thereafter not entitled to exemption under those specific entries.

Frequently asked questions

Can a registered non-profit organisation claim both Section 332 registration and a Schedule notification exemption at the same time?

No. Section 333 is designed to prevent overlap - once an organisation is notified under the specified Schedule III or Schedule VII entries, its Section 332 registration ceases to operate, and vice versa once it re-registers under Section 332.

What happens if my organisation wants to move back to Section 332 registration?

It may apply for fresh registration under Section 332. Once granted, the earlier exemption notification under the relevant Schedule entries ceases to have effect from the date of the new registration.