Application of income for charitable purposes governs exemption, requiring a standard deduction, mandated application and corpus deposit conditions. Income of trusts for charitable or religious purposes is exempt to the extent applied after a standard deduction; corpus donations deposited in prescribed modes are exempt. A mandated portion of gross income must be applied in India, with permitted declarations to treat outstanding receipts as deemed applied; failure to apply those amounts when required results in taxation under special provisions. Payments to other registered trusts are treated as application except when constituted as corpus. Applications from corpus or loans are not treated as application until repaid or redeposited under specified conditions and within the prescribed period.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Application of income for charitable purposes governs exemption, requiring a standard deduction, mandated application and corpus deposit conditions.
Income of trusts for charitable or religious purposes is exempt to the extent applied after a standard deduction; corpus donations deposited in prescribed modes are exempt. A mandated portion of gross income must be applied in India, with permitted declarations to treat outstanding receipts as deemed applied; failure to apply those amounts when required results in taxation under special provisions. Payments to other registered trusts are treated as application except when constituted as corpus. Applications from corpus or loans are not treated as application until repaid or redeposited under specified conditions and within the prescribed period.
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