https://www.taxtmi.com/highlights?id=102511 Violation of section 13 by a charitable trust does not require denial of exemption for its entire income. The notes explain that only income or property applied for the benefit of specified persons, including trustees, is taxable at the maximum marginal rate, while the balance remains eligible for exemption under section 11 subject to other statutory conditions. This position is supported by CBDT Circular No. 387 and the judicial authorities discussed. The assessment is therefore to be recomputed by restricting the denial of exemption to the value of any benefit conferred on trustees, rather than taxing the trust's entire income. en-us Sat, 08 Aug 2026 10:28:59 +0530 Sat, 08 Aug 2026 10:28:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=102511 Violation of section 13 by a charitable trust does not require denial of exemption for its entire income. The notes explain that only income or property applied for the benefit of specified persons, including trustees, is taxable at the maximum marginal rate, while the balance remains eligible for exemption under section 11 subject to other statutory conditions. This position is supported by CBDT Circular No. 387 and the judicial authorities discussed. The assessment is therefore to be recomputed by restricting the denial of exemption to the value of any benefit conferred on trustees, rather than taxing the trust's entire income. Highlights Income Tax Sat, 08 Aug 2026 10:28:59 +0530 https://www.taxtmi.com/highlights?id=102511