Section 11 & 12 of Income Tax

[CA Rachit Agarwal]

We wish to know whether interest income received by trust registered pursuant to provision of Section 12AA of the Income Tax Act, 1961 is also available for exmeption u/s 10 and 11 of the Act if the same is used for charitabole and religious purposes.

[tarsem gupta]

Yes, interest income is exempt if applied for charitable purpose.

AI Summary

Interest income exemption for registered charitable trusts applies when such income is applied for charitable or religious purposes. Interest income received by a trust registered for charitable status is eligible for exemption under the Income Tax provisions governing charitable receipts only when that interest is applied for charitable or religious purposes; the fact that the receipt is interest does not prevent exemption if properly applied by the registered trust.