The section imposes a single obligation. Where the total income of a registered non-profit organisation, computed without giving effect to the provisions of this Part, exceeds the maximum amount which is not chargeable to income-tax in any tax year, that organisation must keep and maintain books of account and other documents in such form and manner and at such place as may be prescribed.
Why it is there
The exemptions in this Part reduce a non-profit organisation's income, often to nil, so a books requirement keyed to income after those exemptions would almost never bite. The section therefore measures the threshold before the Part is applied, so that an organisation of real size keeps records whatever its final taxable figure.
Who it applies to
A registered non-profit organisation whose total income, computed without giving effect to this Part, exceeds the maximum amount not chargeable to income-tax in a tax year
The figures, and what each one turns on
Read the condition in the same row. A figure quoted without it is a wrong answer with a citation attached.
What
Figure
The condition on it
Where
Threshold that triggers the books requirement
Total income exceeding the maximum amount which is not chargeable to income-tax
Total income computed without giving effect to the provisions of this Part, in any tax year
Section 347
What this means in practice
The test is applied to income before the Part's exemptions, so an organisation that ends the year with no taxable income can still be squarely within the requirement. The section itself prescribes nothing about the books: the form, the manner and the place are all left to be prescribed, so compliance is measured against what has been prescribed and not against the words of the section.
An example
Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.
A registered non-profit organisation receives thirty lakh rupees during a tax year and, after applying the provisions of this Part, has nil taxable income. The threshold is tested on the thirty lakh, that is on total income computed without giving effect to the Part, so the organisation must keep and maintain books of account and other documents in the prescribed form, manner and place, even though it pays no tax.
Where you meet this section
You meet this when the Department calls for the accounts of a registered non-profit organisation in an assessment or in proceedings about its registration, and asks for records in the prescribed form and at the prescribed place. It also governs what the organisation must have available behind the return it files for the year.
The words themselves
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.
Section 347, Income-tax Act, 2025.
What people get wrong
Testing the threshold on income after the Part's exemptions. The section requires total income to be computed without giving effect to the provisions of this Part.
Assuming no books are needed because no tax is payable. The obligation turns on the pre-exemption total income exceeding the maximum amount not chargeable to income-tax.
Keeping records in any convenient form or place. The section requires the form, manner and place as may be prescribed.
What this replaced
The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.
12A - Conditions for applicability of sections 11 and 12
Rules of the Income-tax Rules, 2026 that work section 347. Where the rule’s own heading names the section we say so; the rest are marked on reading the rule, which is our derivation and not the department’s. A rule that serves the section silently and that we have missed will not appear here.
Rule 187 — Books of account and other documents to be kept and maintained by a registered non-profit organisation — on reading the rule
A circular binds the department, not you and not a court. Every one below was written under the 1961 Act; it reaches this section because the department’s own concordance carries the provision it names to this one.
Circular No. 689 — Section 143(1)( a) l Prima Facie Adjustments 1994-08-24
Circular No. 143 — 172. Audit report in Form No. 10B in terms of rule 17B - Auditor can accept as a correct list of specified persons as given by man 1974-08-20
Circular No. 115 — Section 12A l Conditions as to Registration of Trusts 1973-06-30
A notification is made under a power the Act gives and, within that power, is law. These too were made under the 1961 Act and are placed here by the department’s concordance.
Read this before you rely on it. Every decision below was decided under the Income-tax Act, 1961. It appears here because it is tagged to a 1961 provision that the department’s own mapping carries to section 347. That is an inference we have drawn, not a holding on the new section: where the words changed in the move, the reasoning may not survive. Treat this as the place to start looking, not as authority on the 2025 Act.
ACIT v Ahmedabad Urban Development AuthoritySupreme CourtCuts both waystagged s.12A We charge fees for our public utility work. Does that cost us charitable status under s.2(15)?
ACIT v Saurashtra Kutch Stock Exchange LtdSupreme CourtHelps taxpayertagged s.12A A binding decision that covers my point was never considered when my order was passed. Is that a mistake apparent from the record?
Ananda Social and Educational Trust v CITSupreme CourtHelps taxpayertagged s.12A Our trust was formed weeks ago and has done nothing yet. Can registration be refused for that?
CIT (Exemptions) v Shree Sai Baba Sansthan TrustHigh CourtHelps taxpayertagged s.12A Our trust is religious and charitable and holds 80G approval. Can the officer tax our hundi collections under s.115BBC?
Chotanagpur Diocesan Trust v Union of IndiaHigh CourtHelps taxpayertagged s.12A My 148A(b) notice describes an enquiry but nothing was attached. Can I insist on the material?
Trust for Reaching the Unreached v CITHigh CourtHelps taxpayertagged s.12A Our audit report was not e-filed with the return and exemption was denied. Can the delay be condoned?
Hemkunt Foundations v PCITITATHelps taxpayertagged s.12A The pcit cancelled our 12A registration after a survey. Was he even allowed to do that?
South India Club v ITOITATCuts both waystagged s.12A CPC denied my trust's section 11 exemption in a section 143(1) intimation for a late Form 10B, and a regular assessment has since been completed and…
Versova Kokni Sunni Jamat Trust v CPCITATHelps taxpayertagged s.12A We have no 12A registration. Is a corpus donation given for buying property taxable in our hands?
CBDT Circular 16/2024CBDTHelps taxpayertagged s.12A(b) Our Form 10B is years late. Who can condone the delay, and how long do I have to apply?
CBDT Circular 7/2024CBDTHelps taxpayertagged s.12A Our Form 10AB was rejected for late filing. Does the CBDT let us apply again?
What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.
