Section 349 Income Tax Act 2025: When Must a Registered NGO File Its Income-Tax Return?
Section 349 prescribes when a registered non-profit organisation must furnish its income-tax return. The obligation depends on total income calculated without giving effect to the special provisions for registered non-profit organisations, rather than only on the amount of tax ultimately payable.
What does Section 349 provide?
Section 349 requires a registered non-profit organisation to furnish its return of income for a tax year when its total income, without giving effect to the provisions of the Part governing registered non-profit organisations, exceeds the maximum amount not chargeable to income-tax.
The return must be furnished as per Section 263(1)(a)(iii) and Section 263(2), within the time limit under Section 263(1)(c) or Section 263(4). The reference to Section 263(4) was inserted by the Finance Act, 2026 with effect from 1 April 2026.
When does the filing obligation arise?
- Identify the organisation: It must be a registered non-profit organisation covered by the special statutory Part.
- Determine total income before applying that Part: For this threshold test, do not reduce the income by applying the special provisions for registered NPOs.
- Compare with the basic exemption threshold: If that total income exceeds the maximum amount not chargeable to income-tax, Section 349 requires a return for the tax year.
- Comply with Section 263: Furnish the return in accordance with the cross-referenced provisions and applicable time limit.
A registered organisation should not assume that no return is required merely because charitable application, accumulation or other relief ultimately reduces taxable income or tax payable to nil.
Which statutory provisions govern the return and time limit?
| Provision | Role under Section 349 |
|---|---|
| Section 263(1)(a)(iii) | Return-filing category expressly cross-referenced for registered non-profit organisations. |
| Section 263(2) | Additional statutory requirements governing the return. |
| Section 263(1)(c) | Applicable time-limit provision for furnishing the return. |
| Section 263(4) | Additional return time-limit provision expressly included by the Finance Act, 2026 amendment. |
The precise due date and whether a particular filing route is available depend on the operative text of Section 263, relevant prescribed requirements and the organisation's circumstances. Check current official filing instructions rather than treating a date from a previous assessment year as universally applicable.
How does Section 349 differ from the books-of-account and audit provisions?
| Section | Subject | Principal requirement |
|---|---|---|
| 347 | Books of account | Maintain prescribed books and documents when the stated income threshold is exceeded. |
| 348 | Audit | Have accounts audited by an accountant and furnish the prescribed audit report when the stated threshold is exceeded. |
| 349 | Return of income | Furnish the income-tax return under the specified provisions of Section 263 when the stated threshold is exceeded. |
These provisions address separate compliance duties. Filing a return does not, by itself, substitute for maintaining books or furnishing an audit report where those obligations apply.
Relevant statutory terms and expressions
Practical illustrations
Illustration 1: Income above the threshold, but no final tax payable
Assume a registered charitable organisation has total income of Rs. 12 lakh before applying the special registered-NPO provisions, and that this amount exceeds the applicable maximum amount not chargeable to income-tax. Even if the organisation's qualifying charitable expenditure results in no taxable regular income, Section 349 still requires a return, because the threshold is tested before applying the special Part.
Illustration 2: Income does not exceed the threshold
Where the relevant total income does not exceed the applicable maximum amount not chargeable to income-tax, the specific filing trigger in Section 349 is not met. Other independent return-filing obligations, if applicable, should still be examined.
Illustration 3: Audit and return both required
Where the income threshold is exceeded, the organisation should assess its obligations under Section 347, Section 348 and Section 349 separately. Proper accounting records and audit compliance do not eliminate the return-filing obligation.
Frequently asked questions
Does a registered NGO have to file a return if it has no tax liability?
Yes, where its total income before giving effect to the special registered-NPO Part exceeds the applicable threshold under Section 349.
Does Section 349 specify a particular return due date?
No fixed date is stated in Section 349 itself. It refers to the time limits in Section 263(1)(c) or Section 263(4).
What changed under the Finance Act, 2026?
The Finance Act, 2026 inserted the words referring to Section 263(4) in Section 349, effective from 1 April 2026.
Is furnishing an audit report enough to comply with Section 349?
No. Audit compliance under Section 348 and return filing under Section 349 are distinct obligations.
Can a charitable organisation ignore Section 349 because it has accumulated income?
No. The filing threshold must be evaluated without giving effect to the special Part, including its application and accumulation provisions.
Official text and related sections
Read the official Income-tax Act, 2025, as amended by the Finance Act, 2026. Related provisions include Section 332 (registration), Section 347 (books of account) and Section 348 (audit).
Updated: 12 November 2026. This article is general legal information; consult the applicable statute, rules and official filing instructions for the relevant tax year.