Income received from a charitable/religious trust will be tax-exempt under Section 11, provided that the activity being performed is incidental to the attainment of objectives set by the trust/institution, and separate books of account are maintained by the particular trust/institution pertaining to the business. In this article, we look at some of the major exemptions provided under Section 11 of the Income Tax Act.
Income Tax : This analysis explains how Parliament designed Sections 11 to 13 to ensure that tax-free income is ultimately used for charitable ...
Income Tax : This analysis explains how charitable and religious trusts qualify for exemption under Sections 11 to 13 of the Income-tax Act. It...
Income Tax : The document highlights situations where exemptions under Sections 11 and 12 can be withdrawn, including benefits provided to inte...
Income Tax : Courts held that prior exemption claims under Sections 11 and 12 cannot justify denial of 80G approval. The key takeaway is that b...
Income Tax : The Tribunal ruled that non-filing of Form 10B is a curable defect and cannot justify denial of exemption during processing. Secti...
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CA, CS, CMA : ICAI clarified that application of funds can only be made on actual payment basis in case of charitable trusts. This amendment is ...
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Income Tax : CA Shailesh R Ghedia president of BJP Professional Cell, Mumbai has written a letter to Honorable Finance Minister, Smt. Nirmala S...
CA, CS, CMA, Income Tax : We have not noticed any heed being extended towards various issues and possible solutions we have proposed through those represent...
Income Tax : The Tribunal held that the special tax regime under Section 115BBE is confined to additions made under Sections 68 to 69D. Additio...
Income Tax : The Revenue disallowed loan repayments alleging double deduction of charitable expenditure. The Tribunal ruled that documentary ev...
Income Tax : The ITAT held that once registration under Section 12AB was ultimately granted on the basis of the original application, the doctr...
Income Tax : The Tribunal ruled that premium rooms, higher tariffs, and specialized medical facilities cannot by themselves establish a profit ...
Income Tax : ITAT Mumbai held that additions under Section 68 cannot be sustained merely on suspicion regarding penny stock transactions. The T...
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Income Tax : Part III of the Standard Operating Procedure (SOP) (Part I - 08.07.2015) for making application for claim of tax exemption u/s 11(...
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The Tribunal held that the special tax regime under Section 115BBE is confined to additions made under Sections 68 to 69D. Additions arising under normal provisions of the Act cannot automatically attract higher taxation.
The Revenue disallowed loan repayments alleging double deduction of charitable expenditure. The Tribunal ruled that documentary evidence established that no double claim had been made and directed deletion of the addition.
The ITAT held that once registration under Section 12AB was ultimately granted on the basis of the original application, the doctrine of relating back applied. As a result, exemption under Sections 11 and 12 could not be denied for the relevant assessment year.
The Tribunal ruled that premium rooms, higher tariffs, and specialized medical facilities cannot by themselves establish a profit motive. Charitable status must be tested on statutory criteria rather than perceptions of affordability or luxury.
This analysis explains how Parliament designed Sections 11 to 13 to ensure that tax-free income is ultimately used for charitable or religious purposes. The key takeaway is that exemption depends on genuine application of income and compliance with statutory safeguards.
ITAT Mumbai held that additions under Section 68 cannot be sustained merely on suspicion regarding penny stock transactions. The Tribunal ruled that documentary evidence and absence of direct incriminating material supported the assessee’s LTCG claim.
This analysis explains how charitable and religious trusts qualify for exemption under Sections 11 to 13 of the Income-tax Act. It highlights application of income, accumulation rules, anti-abuse provisions, and a detailed computation model for exempt and taxable income.
The document highlights situations where exemptions under Sections 11 and 12 can be withdrawn, including benefits provided to interested persons, impermissible investments, and violations of charitable purpose conditions.
Show cause notice dated 06-12-2012 issued by the Additional Director General, DRI, was quashed for lack of jurisdiction in view of the law laid down in Canon India Pvt. Ltd. v. Commissioner of Customs.
The Tribunal observed that the trust had eventually filed Form 10 and sought condonation of delay. Since the issue was pending before the competent authority, the exemption dispute was restored for reconsideration.
