Income-tax Act, 1961Section 115BBC
- Anonymous donations taxed at 30% beyond ₹1 lakh or 5% of total donations
- Wholly religious trusts excluded
- 115BBI: specified income of institutions taxed at 30%
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 115BBC
Charitable trustsSection 115BBC → Section 337
Tax on anonymous donations to trusts (and other specified income)
Section 115BBC of the old Income-tax Act, 1961 · new section 337 under the Income-tax Act, 2025
New reference Section 337, Table Sl. No. 1 (115BBI → 337)
Income-tax Act, 2025Section 337, Table Sl. No. 1 (115BBI → 337)
- Anonymous donations as specified income: section 337, Table Sl. No. 1
- Same exemption: higher of ₹1,00,000 and 5% of total donations
- Wholly religious trusts excluded
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Moved into the 'specified income' table.
Practice notes
- Check the rate applicable to specified income in the non-profit Part before computing.
Frequently asked
Are anonymous donations taxable for trusts under the new Income Tax Act 2025?
Yes, under section 337, Table Sl. No. 1, beyond the higher of ₹1 lakh or 5% of total donations (wholly religious trusts excluded).
What is section 115BBC called in the new Income-tax Act, 2025?
Section 115BBC of the Income-tax Act, 1961 corresponds to Section 337, Table Sl. No. 1 (115BBI → 337) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 115BBC under the new Income Tax Act?
Moved into the 'specified income' table.
Is section 115BBC still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 115BBC of the 1961 Act. Section 337, Table Sl. No. 1 (115BBI → 337) of the 2025 Act applies from tax year 2026-27.