Section-346: Restriction on commercial activities by registered non-profit organisation carrying out advancement of any other object of general public utility

Section-346 : Restriction on commercial activities by registered non-profit organisation carrying out advancement of any other object of general public utility

Section-346 seeks to provide for the provisions relating to restriction on commercial activities of a registered non-profit organisation which has advancement of any other object of general public utility as any of its objects. Learn to understand the section-346 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-346 as per act

No registered non-profit organisation, carrying out advancement of any other object of general public utility, shall carry out any commercial activity unless,—

such commercial activity is undertaken in the course of actual carrying out of advancement of any object of the general public utility;
the aggregate receipts from such commercial activity or activities do not exceed 20% of the total receipts of such registered non-profit organisation of the relevant tax year; and
separate books of account are maintained by such registered non-profit organisation for such activities