Exemption towards income for administration of Charitable or Religious Institution

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