Section 333 Income Tax Act 2025: Can an NGO Switch Tax Exemption Regimes?
Section 333, titled Switching over of regimes, governs the interaction between registration of a non-profit organisation under Section 332 and specified income-tax exemptions under Schedules III and VII. It also sets out when registration ceases and the conditions for returning to the registration regime.
Can a registered non-profit organisation claim another exemption regime?
Section 333 addresses the circumstances in which a registered non-profit organisation (NPO) may rely on specified statutory exemptions instead of the registered-NPO framework. It is important to distinguish between exemptions permitted by subsection (1) and events that cause Section 332 registration to cease under subsection (2). They are not identical lists.
Section 333(1): Restrictions on excluding income from total income
For a registered NPO, Section 333(1) provides that nothing in Section 11, other than the specifically identified entries below, excludes income from total income for the relevant tax year:
- Schedule II, Table, serial number 1;
- Schedule III, Table, serial numbers 27 to 29 and 36; and
- Schedule VII, Table, serial numbers 10 to 19 and 42 to 45.
Accordingly, a registered NPO cannot assume that every exemption mentioned in Section 11 is independently available to it. Eligibility for any listed exception still depends on satisfying that entry's own statutory conditions.
Section 333(2): When does registration under Section 332 cease?
Section 333(2) specifies two distinct cessation rules:
- On notification: Section 332 registration ceases from the date on which the registered NPO is notified as specified in Schedule III, Table, serial numbers 27, 28, 29 or 36, or Schedule VII, Table, serial number 42.
- On claiming specified exemptions: Where a registered NPO claims exemption under Schedule VII, Table, serial numbers 43, 44 or 45, registration ceases from 1 April of the relevant tax year.
Section 333(3): Can the organisation return to Section 332 registration?
Yes, subject to the statutory condition. A person whose registration ceases under subsection (2) may apply for registration under Section 332. For an organisation notified under Schedule III, Table, serial numbers 27, 28, 29 or 36, or Schedule VII, Table, serial number 42, the notification granting that exemption must cease to have effect from the date on which the new registration is granted.
Thereafter, the organisation is not entitled to exemption under the corresponding serial numbers of those Schedules. The wording of subsection (3) expressly addresses cessation of the specified notification; it should not be read as creating an automatic right to registration without complying with Section 332.
Relevant statutory definitions and expressions
An organisation registered under the statutory registration framework in Section 332 and subject to the special provisions governing registered non-profit organisations. The applicable registration status must be checked against the Act and the relevant order.
Includes relief of the poor, education, yoga, medical relief, preservation of the environment, preservation of monuments or objects of artistic or historic interest, and advancement of another object of general public utility.
The period used under the Income-tax Act, 2025, for determining income and tax liability; the particular tax year matters for the 1 April cessation rule in Section 333(2).
In Section 333, a notification is relevant to specified Schedule III and Schedule VII entries; eligibility and the date of the notification determine when registration ceases in the cases expressly listed.
Practical illustration: switching between regimes
Suppose a Section 332-registered NPO becomes notified for an exemption covered by Schedule III, Table, serial number 27. Under Section 333(2), its registration ceases to operate from the date of the relevant notification. If it subsequently seeks registration under Section 332, subsection (3) requires the notification-based exemption to cease from the date registration is granted; the organisation cannot continue claiming that particular notified exemption thereafter.
By contrast, if a registered NPO claims an exemption under Schedule VII, Table, serial number 43, subsection (2) fixes cessation from 1 April of the tax year concerned. These examples illustrate statutory timing, not automatic eligibility for any exemption.
How does Section 333 relate to Sections 332 and 334?
Section 332 deals with applications for registration. Section 333 determines how that registration interacts with specified alternative exemptions. Section 334 addresses tax on income of a registered NPO, subject to the applicable statutory provisions.
Frequently asked questions
Does Section 333 allow all tax exemptions to a registered NGO?
No. Subsection (1) identifies only particular exceptions to its restriction on exclusion of income under Section 11.
Does registration cease on the date of every exemption claim?
No. The cessation date depends on the relevant entry. For specified notified exemptions it is the notification date; for Schedule VII serial numbers 43 to 45 it is 1 April of the relevant tax year.
Can an NPO apply for Section 332 registration again?
Yes. Section 333(3) permits an application, subject to its conditions and the requirements of Section 332.
Can the organisation keep the earlier notified exemption after fresh registration?
Not for the specified notifications addressed in Section 333(3). The notification ceases to have effect from the date new registration is granted, and the corresponding exemption is unavailable thereafter.
Official statute and further reading
This explanation follows Section 333 of the Income-tax Act, 2025, as amended by the Finance Act, 2026. For a specific organisation, read the exact Schedule entry and its conditions alongside Sections 332 and 333.
Updated: 12 November 2026. General statutory information; check applicable notifications and facts before acting.