What Commercial Activities Are Permitted for a Registered Non-profit Organisation (RNPO) under the Income Tax Act, 2025

In this fourth issue of Pacta’s seven-part series on the Income Tax Act, 2025, we look at how the Act treats commercial activities undertaken by registered non-profit organisations (RNPOs).

This issue covers:
• Business undertakings held as property by an RNPO under Section 344

• Restrictions on commercial activities under Section 345

• Additional conditions for RNPOs carrying out advancement of any other object of general public utility under Section 346

• What “incidental” means in the context of commercial activities

• How general public utility objects are identified

Read the full issue here

Read the Previous Issues in This Series

Part 1: Registration of Non-Profit Organisations under the Income Tax Act, 2025

Part 2: Classification of Income of Registered Non-profit Organisations (RNPOs) under the Income Tax Act, 2025

Part 3: Application of Income of RNPO: What Expenditure Qualifies as Application of Income Towards RNPO’s Charitable/Religious Purposes