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Exemption towards income for administration of the Charitable or Religious Institution

Any income of the specified body or authority which is established for the administration of the specified institution is exempted under section 10(23BBA) of the Income Tax Act. The provisions of the said exemption section 10(23BBA) are explained in the present article.

Categories of assesses to whom the exemption is available under section 10(23BBA)

The body / authority, which is established or appointed or constituted under any Central or State or Provincial Act, are the specified categories of assessee eligible for exemption under section 10(23BBA) of the Income Tax Act.

Exemption available under section 10(23BBA)

Any income of the specified categories of the assessee (as mentioned above) which provides administration of any of the following-

  • Public, religious or charitable trust; or
  • Endowments (including temples; wakfs; churches; gurdwaras; or other places of public religious worship); or
  • Societies for charitable or religious purposes (registered under the Societies Registration Act, 1860, or any other law for the time being in force).

It is very important to note here that exemption available under section 10(23BBA) doesn’t apply to the income of any such trust or endowments or societies.

Amount of exemption available under section 10(23BBA)

The entire amount which qualifies for exemption under section 10(23BBA) is available as an exemption. There is no upper limit prescribed under the Act.

Table – Articles on Section 10 Exemptions

Sr. No. Particulars
1 Section 10(1)– Exemption to Agricultural Income
2 Section 10(2) Exemption to amount received by co-parcener from HUF
3 Section 10(2A) Exemption towards share of income from firm/LLP
4 Exemptions towards interest to non-residents | Section 10(4) & 10(4B)
5 Exemption on Tax paid by Govt or Indian concern on certain income of a foreign company
6 Section 10(7) Perquisites/allowances exemption to Govt employees serving outside India
7 Exemption- Section 10(8A) & section 10(8B) of Income Tax Act
8 Exemption towards commuted value of pension Section 10(10A)
9 Exemption towards retrenchment compensation received by workman Section 10(10B)
10 Section 10(10BC) Exemption towards compensation received on account of any disaster
11 Section 10(10C) Exemption of amount received on voluntary retirement
12 Exemption towards tax paid by employer on non-monetary perquisites: Section 10(10CC)
13 Section 10(10D) Exemption towards amount received under a Life Insurance Policy
14 Exemption for amount received from Statutory & Recognized PF
15 Exemption for payment from approved superannuation fund Section 10(13)
16 Income Tax Exemption on prescribed allowances/ benefits | Section 10(14)
17 Section 10(15) Exemption- Interest on Bonds, Debentures, Securities
18 Scholarship exemption | Section 10(16) | Income Tax Act 1961
19 Exemption towards income for administration of Charitable or Religious Institution
20 Section 10(32) Exemption | Income of minor clubbed with parent
21 Exemption for dividend income received from Indian Company | Section 10(34)
22 Section 10(34A) Exemption towards income received by a shareholder on buy back of shares
23 Section 10(35) Exemption towards income received from units
24 Section 10(37) Exemption towards Capital Gain arising on Compulsory Acquisition of Urban Agricultural Land

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April 2024