Section 337
Section 337: specified income
Section 337 lists the specific categories of income of a registered non-profit organisation that are treated as "specified income" - the portion taxed at the flat 30% rate under Section 334(1)(a) - and fixes exactly which tax year each category is taxable in.
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.
Items of specified income and when they are taxed
The table below sets out each type of specified income and the tax year in which it becomes taxable, as listed in Section 337:
| Specified income | Taxable in |
|---|---|
| Anonymous donation received by an organisation registered wholly for religious purposes, or wholly for charitable and religious purposes (excluding donations specifically directed to a university, educational institution or hospital run by it) - excluding the higher of ₹1,00,000 or 5% of total donations received in the tax year | The tax year the anonymous donation is received |
| Income applied, directly or indirectly, for the benefit of a related person | The tax year the application is made |
| Income applied outside India in contravention of Section 338(a) | The tax year the application is made |
| Investment or deposit made in contravention of Section 350 | The tax year the investment or deposit is made |
| Deemed corpus donation where a condition in Section 340 is violated | The tax year the violation occurs |
| Accumulated income applied to purposes other than those it was accumulated for | The tax year it is so applied |
| Accumulated income that ceases to be accumulated or set apart for the specified purpose | The tax year it ceases to be so accumulated or set apart |
| Accumulated income not applied within the accumulation period under Section 342(1) | The last of the tax years for which the income was accumulated or set apart |
| Accumulated income credited or paid to any other registered non-profit organisation | The tax year it is so credited or paid |
| Income applied to purposes other than the charitable or religious purposes for which the organisation is registered | The tax year it is so applied |
| Income determined by the Assessing Officer under Section 344 in excess of the income shown in the books of account of a business undertaking | The tax year to which such income relates |
| Fair market value of an asset not held in a form or mode specified in Schedule XVI, even after expiry of one year from the end of the tax year of acquisition | The tax year immediately following expiry of that one-year period |
| Deemed application under Section 341(5) not actually applied for the organisation's objects in India within the period under Section 341(6) | The tax year specified in Section 341(6) by which such application is required |
Frequently asked questions
Is every anonymous donation treated as specified income?
No - for organisations registered wholly for religious purposes, or wholly for charitable and religious purposes, anonymous donations up to the higher of ₹1,00,000 or 5% of total donations received in the tax year are excluded. Donations specifically directed to a university, educational institution or hospital run by the organisation are also excluded from this rule.
What rate applies to specified income?
30%, under Section 334(1)(a).
If accumulated income is not applied within its accumulation period, when is it taxed?
In the last of the tax years for which the income was accumulated or set apart under Section 342(1), per item 8 of the Section 337 table.
Related sections
Want this applied to your actual filing, not just explained?
Check what counts as specified income for your organisationLast updated 9 September 2026