Section 340
Section 340: deemed corpus donation
Section 340 gives registered non-profit organisations that hold a temple, mosque, gurudwara, church or other notified religious place an option: donations received specifically for renovating or repairing that place can be treated as if they were corpus donations under Section 339, provided the organisation follows strict conditions.
What Section 340 says
Where the property held by a registered non-profit organisation includes a temple, mosque, gurudwara, church or other place notified under Section 133(1)(b)(vi), any sum received as donation for the renovation or repair of that place may, at the organisation's option, be deemed to form part of the corpus under Section 339, if it:
- Maintains such corpus as separately identifiable
- Applies such corpus only for the purpose for which the donation was made
- Invests or deposits such corpus in a mode permitted under Section 350
- Does not apply such corpus for making a donation to any person
Frequently asked questions
Which religious places qualify for the deemed corpus donation option?
A temple, mosque, gurudwara, church or other place notified under Section 133(1)(b)(vi), where held as property of the registered non-profit organisation.
Is treating the donation as corpus automatic?
No - it is optional for the organisation, but it must be maintained as a separately identifiable corpus, applied only for the renovation/repair purpose, invested under Section 350, and never used to make a donation to any other person.
What happens if any of the four conditions in Section 340 is violated?
Under Section 337 (item 5 of the specified income table), a deemed corpus donation where a Section 340 condition is violated becomes specified income, taxable in the tax year the violation occurs.
Related sections
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Get advice on deemed corpus donations for religious placesLast updated 9 September 2026