Income Tax Exemption for Trusts: Section 11 Conditions and Implications of Concealed Income by Assessing Officer

Property held under trust, including business undertakings, is eligible for income tax exemption under Section 11, provided the business activity is incidental to the trust's objectives and separate accounts are maintained. If an Assessing Officer identifies concealed income, exemptions under Sections 11(1) and 11(2) are not applicable. Section 11(4) allows trustees to claim exemptions for income from business undertakings held in trust. The Assessing Officer can determine the income of such undertakings, and any excess income identified is considered applied for non-charitable purposes. Proper maintenance of books and documents is required for compliance.