176. Pending amendment to modify mode of investment under section 13(5), Commissioners authorised to issue/renew recognition under section 80G if holding of assets in immovable property by applicant trust alone is under consideration

1. Under section 13(1)(d ) any charitable or religious trust/institution can claim exemption under section 11 for and from any assessment year relevant to a previous year beginning on or after April 1, 1981, only if the assets of the trust/institution are invested in the manner prescribed in section 13(5).

2. In response to representations made on the subject, the Finance Minister made a statement in Lok Sabha on March 31, 1981 to the effect that the mode of investment prescribed by section 13(5) is to be modified so as to permit charitable or religious trusts/institutions to invest trust funds in immovable properties as well.  An assurance has been given that a suitable amendment to the Income-tax Act will be sponsored at an early date and that it shall be made effective from April 1, 1981. Pending the amendment, in consonance with the Government’s declared policy, the Commissioners of Income-tax can issue/ renew recognition certificates under section 80G if the only reason for consideration in the matter is the holding of assets in the shape of immovable properties by the applicant trust/institution.

Circular : No. 317 [F. No. 180/160/81-IT(A-I)], dated 19-12-1981.

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