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.
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