We’re a registered NPO and keep hearing the term ‘commercial activity’. What does it actually cover?
Broadly, it covers trade, commerce or business, or services connected with such activity, done for a cess, fee or other consideration (some form of payment in return).
To decide whether something counts, look at the real activity and the contract, not only the invoice title.
Source: Income-tax Act, 2025 - section 355(e).