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 : ITAT held that delayed filing of Form 10B cannot defeat Section 11 exemption if the audit report is available before processing un...
Income Tax : The Income Tax Department has issued detailed FAQs explaining registration, audit, return filing, investment norms, and tax exempt...
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Income Tax : The document highlights situations where exemptions under Sections 11 and 12 can be withdrawn, including benefits provided to inte...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 : Dive into Lok Sabha Unstarred Question No. 2302 to understand the tax exemption status of BCCI, potential changes, and insights in...
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 ...
Income Tax : These instructions are guidelines to help the taxpayers for filling the particulars in CSV template in Part-B Details of donors an...
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 : ITAT Mumbai quashed reassessment under Section 147, holding reopening on an issue examined in scrutiny amounted to a mere change o...
Income Tax : Telangana HC restored Section 11 exemption after finding no material showing Section 13 violation or misuse of trust funds and set...
Income Tax : ITAT Mumbai set aside cancellation of Section 12AB registration, holding Section 13(1)(b) inapplicable to a trust established befo...
Income Tax : ITAT Delhi set aside cancellation of a charitable educational society’s Section 12AB registration, holding alleged financial irr...
Income Tax : ITAT Delhi quashed the cancellation of Section 12A registration, holding that the PCIT lacked jurisdiction and following its earli...
Income Tax : CBDT extends deadline for trusts and institutions to submit audit reports in Form 10B/10BB until November 10, 2024....
Income Tax : NOTIFICATION NO. 03/2016 Exercise of option etc under section 11. (1) The option to be exercised in accordance with the provisions...
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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Corporate Law : Section 11 of the Special Economic Zones Act, 2005 – Development Commissioner – Rescission of all previous notifications appoi...
Bangalore ITAT held that allegations of capitation fee collections could not justify denial of exemption under Sections 11 and 12 without proof of statutory violations. The Tribunal followed binding precedent in the assessee’s own case and upheld its charitable status.
The ITAT Delhi held that although failure to file Form 10B disentitled the assessee from claiming exemption under Sections 11 and 12, the entire gross receipts could not be taxed where the expenditure was incurred for charitable purposes. The Tribunal upheld deduction of expenditure while denying the statutory exemption.
The High Court upheld the Tribunal’s decision allowing Section 11 exemption after applying CBDT Circular No. 16 of 2022 permitting condonation of delayed Form 10B. It held that the Revenue failed to show why the circular was inapplicable.
Tribunal held that final assessment order was time-barred because it was passed after mandatory period prescribed under Section 144C(13). Assessment was set aside, making remaining transfer pricing issues academic.
The ITAT Visakhapatnam held that the Commissioner cannot invoke Section 263 where the Assessing Officer has already conducted inquiries and applied his mind to the disputed issues.
The ITAT held that registration granted under Section 12AA before completion of assessment entitled the trust to claim exemption for the earlier assessment year under the proviso to Section 12A(2). It also deleted the addition on donations.
ITAT Kolkata held that appellate authority should have awaited outcome of pending condonation application before deciding exemption claim. Matter was remanded for fresh adjudication after considering competent authority’s decision.
ITAT Delhi held that receipts from hiring conference and auditorium facilities constituted business income under Section 11(4A) as the charitable society actively provided commercial facilities beyond passive letting. The assessee’s appeals were dismissed.
The Income Tax Department has issued detailed FAQs explaining registration, audit, return filing, investment norms, and tax exemptions for charitable and religious trusts. The guidance also clarifies compliance requirements and circumstances that can lead to cancellation of registration and loss of exemptions.
The Tribunal held that the MAT provisions under Section 115JB do not apply to banking companies, following binding precedents in the bank’s own cases. The decision provides significant relief by confirming that banks are not liable to tax on book profits under MAT provisions.
