Section 347
Section 347: books of account
Section 347 is the first of the compliance requirements in this Chapter for registered non-profit organisations - it fixes when the obligation to keep formal books of account kicks in.
What Section 347 says
"Where the total income of a registered non-profit organisation, without giving effect to the provisions of this Part, exceeds the maximum amount which is not chargeable to income-tax in any tax year, such registered non-profit organisation shall be required to keep and maintain the books of account and other documents in such form and manner and at such place, as may be prescribed."
When the obligation applies
The trigger is the organisation's total income computed without giving effect to the exemption provisions of this Part - if that pre-exemption figure exceeds the basic exemption threshold (the maximum amount not chargeable to tax) for the tax year, the organisation must keep and maintain books of account and other documents in the prescribed form, manner and place.
The same threshold test is used to trigger the audit requirement under Section 348 and the return-filing requirement under Section 349.
Frequently asked questions
When must a registered non-profit organisation maintain books of account?
When its total income, computed without giving effect to the exemptions under this Part, exceeds the maximum amount not chargeable to income-tax for that tax year.
Does the exemption under this Part reduce the income tested against the threshold?
No - the test is applied to the total income before giving effect to the Part's exemption provisions, so organisations cannot avoid the books-of-account requirement simply because their net taxable income (after exemption) is low.
Related sections
Want this applied to your actual filing, not just explained?
Get help with your non-profit's books of accountLast updated 9 September 2026