Law: Income Tax Act, 1961

Section: 11,13

Income-tax----Charitable purposes---Exemption---Exclusion from exemption---Scope of S.13---Subsection (1)(b) of S.13 applies only to charitable trust and charitable institutions---Trust for charitable and religious purposes is not covered by S.13(1)(b)---Indian Income Tax Act, 1961, Ss. 11 & 13. A trust can be either for religious purposes or for charitable purposes or it can be for both charitable and religious purposes. A perusal of section 13 of the Income Tax Act, 1961, makes it clear that it carves out an exception to section 11 or 12 by providing that in those cases which are covered by clauses (a), (b), (c) and (d), the provisions of section 11 or 12 shall not operate. Broadly speaking, it is divided into three categories and an exception is carved out in the case of private religious trusts, charitable trusts and charitable or religious trusts if the conditions mentioned in clauses (a), (b), (c) and (d) are satisfied. Firstly, any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public is not to be excluded as provided under section 11 of the Act. Secondly, where a trust for charitable purposes or a charitable institution is created or established after the commencement of the Income-tax Act the authority is required to find out whether the trust for charitable purposes is established for the benefit of a particular religious community or caste. If it is so established, then the provisions of section 11 would not be applicable. Thirdly, clauses (c) and (d) carve out an exception in the case of a trust for charitable or religious purposes or a charitable or religious institution. It provides certain cases in which any income thereof ensures, used or applied, directly or indirectly, for the benefit of any person referred to in subsection (3). In the three different clauses, namely, (a), (b) and (c) of subsection (1) of section 13, the Legislature has used different phrases. Clause (a) deals with a trust for private religious purposes. Clause (b) deals with a trust for charitable purposes or charitable institution, clauses (c) and (d) deal with a trust for charitable or…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492