Organisations which are existing for charitable purpose are entitled to seek exemption from the tax liabilities under the Act. However, the institutions which were engaged in charitable activities other than relief to poor, education, medical relief, preservation of environment, monuments or places of artistic or historic interest, or religious institutions [i.e. institutions which were having object of general public utilitiy] were denied exemption, if these institutions were engaged in any activity of trade, commerce or business or activity of rendering any service for a cess or fees. Amendment to this effect of denying benefit of exemption was brought by Finance Act, 2008 w.e.f. 1.4.2009.

It is proposed in the Bill, that such benefit of exemption will not be denied to the institutions having object of general public utility, even where they are engaged in the activity of trade, commerce or business activity or for rendering any service for a cess or fee, provided the aggregate value of receipt from such activities is less than Rs. 10.00 lacs in the year under consideration.

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

March 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031