Section 338
Section 338: income not to be included in regular income
Section 338 carves out two specific categories of income that are kept out of a registered non-profit organisation's "regular income" altogether - certain Board-approved application of income outside India, and corpus donations.
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.
What is excluded from regular income
While computing the regular income of a registered non-profit organisation, the following income is not included:
- Income applied outside India, where the Board directs by general or special order that it shall not be included, in the case of an organisation created before 1 April 1952 for charitable or religious purposes, or created on or after 1 April 1952 for charitable purposes where the application of income outside India tends to promote international welfare in which India is interested
- Corpus donation received by the registered non-profit organisation under Section 339
Frequently asked questions
Is income applied outside India always excluded from regular income?
No - only where the Board specifically directs by general or special order, and only for organisations created before 1 April 1952 for charitable or religious purposes, or created on/after that date for charitable purposes where the application promotes international welfare in which India is interested.
Are corpus donations part of regular income?
No - corpus donations received under Section 339 are specifically excluded from regular income under Section 338(b).
Related sections
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Check what income is excluded from your organisation's regular incomeLast updated 9 September 2026