Charitable exemption conditions limit application of income, permitted investments, distributions, and business income for notified foundations under specified conditions. The Central Government notifies India Polo Promotion Foundation as a notified entity subject to conditions: income must be applied or accumulated exclusively for its objects in accordance with the accumulation and application provisions; investments of funds are restricted to specified forms and modes; income distribution to members is prohibited except as grants to affiliated associations or institutions; and the exemption does not apply to business profits unless the business is incidental and maintained in separate books.