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CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies

Under the Income-tax Act, 2025, for an anonymous donation received by a registered non-profit organisation that is taxable as specified income, in which tax year is it taxable?

It is taxable in the tax year in which the anonymous donation is received. The Act ties the timing to receipt, not to later application or accumulation, so the organisation cannot defer the charge by planning when it spends the money.

  1. AThe tax year in which the donation is receivedCorrect
  2. BThe tax year in which it is eventually applied
  3. CThe tax year following receipt
  4. DThe last tax year of the accumulation period

Explanation

The table in section 337 provides that anonymous donations are taxable in the tax year in which they are received. Application-based years apply to other items, such as accumulated income not applied.

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