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<h1>Denial of exemption for charitable trusts limits tax relief where income benefits interested persons or arises from restricted investments.</h1> Denial of exemption under section 13(1) removes exemption under sections 11 and 12 where income or property of a trust is applied, directly or indirectly, for private religious purposes not enuring for the public, for the benefit of a particular religious community or specified interested persons, or where funds are invested otherwise than in modes permitted by section 11(5); penalties and non applicability of gift relief may follow, subject to specified grandfathering exceptions and recent legislative clarifications.