Finance Bill 2011 amends Income-tax Act to raise charitable purpose receipts threshold from 10 to 25 lakh rupees.
Clause 3 of the Finance Bill, 2011 amends section 2, clause (15) of the Income-tax Act, concerning the definition of "charitable purpose." The amendment changes the threshold for receipts from activities involving trade, commerce, or business from ten lakh rupees to twenty-five lakh rupees. This adjustment means that such activities will not disqualify as charitable purposes if their aggregate receipts do not exceed twenty-five lakh rupees in the previous year. This change is effective from April 1, 2012, applicable to the assessment year 2012-2013 and subsequent years.
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