Section 334
Section 334: tax on income of a registered non-profit organisation
Section 334 is the charging provision for registered non-profit organisations - it tells you how the income-tax payable on a registered non-profit organisation's total income is actually computed, splitting it between a flat 30% rate on "specified income" and the normal applicable rate on other income.
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.
How the tax is computed
Sub-section (1): the income-tax payable by a registered non-profit organisation on its total income for any tax year is the aggregate of -
- tax at 30% on its specified income for that tax year, and
- tax at the applicable rate on its taxable regular income and any residual income for that tax year, under other provisions of the Act
This Chapter overrides other provisions, with two exceptions
Sub-section (2): the provisions of this Chapter apply irrespective of anything to the contrary in any other provision of the Act, other than Sections 96 to 98.
Frequently asked questions
What rate applies to a registered non-profit organisation's "specified income"?
30%, under Section 334(1)(a).
Is all of a registered non-profit organisation's income taxed at 30%?
No - only its "specified income" is taxed at 30%. Its taxable regular income and any residual income are taxed at the rate applicable under other provisions of the Act.
Related sections
Want this applied to your actual filing, not just explained?
Get help computing your non-profit organisation's taxLast updated 9 September 2026