Section 2(15) of incometax act Charitable institution

[GOPAL HARLALKA]

Rajsthan Bhawan is a 'DHARMSHALA' It is registered u/s 12A of the Income Tax Act. Till assessment year 2015-16 there is no tax liability on surplus of income over expenditure because gross receipt does not exceed ₹ 2500000/- There is change in section 2(15) by Finance Act 2015. Under the new law receipts should not exceed 20% of the receipts..Source of income of Dharmshala is rent from letting out the Bhawan and interest on fixed depost with bank.

my query is - under the amended law will there be tax liability on dharmshala?

[satbir singhwahi]

AS PER THE AMENDMENT THERE WILL BE PROBLEM FOR SMALL INSTITUTIONS