Clarified "Charitable Purpose" in Section 2(15): Trade Activities Limited to 20% of Receipts; Focus on Non-Profit Goals

The term "charitable purpose" under Section 2(15) of the Income-tax Act, 1961, encompasses relief of the poor, education, yoga, medical relief, environmental preservation, and the advancement of general public utility. However, activities related to trade, commerce, or business are excluded unless they are incidental and do not exceed 20% of total receipts. Legal interpretations emphasize that charitable purposes must not be profit-driven. The 2008 amendment to Section 2(15) restricts trade-related activities by charities, with exceptions for certain statutory and non-statutory bodies, provided their income aligns with charitable objectives and remains within specified limits.