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Income from property held for charitable or religious purposes.
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....part is not in excess of ^4[fifteen] per cent of the income from such property; (c) income ^5[derived] from property held under trust- (i) created on or after the 1st day of April, 1952, for a charitable purpose which tends to promote international welfare in which India is interested, to the extent to which such income is applied to such purposes outside India, and (ii) for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to which such income is applied to such purposes outside India: Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income; ^6[(d) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or ^57[institution, subject to the condition that such voluntary contributions are invested or deposited in one or more of the forms or modes specified in sub-section (5) maintained specifically for such corpus].] ^7[^45[Explanation 1.] - For the purposes of clauses (a) and (b),- (1) in computing the ^8[fifteen....
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.... 12AA ^52[or section 12AB, as the case may be], being contribution with a specific direction that it shall form part of the corpus], shall not be treated as application of income for charitable or religious purposes.] ^47[Explanation 3.-For the purposes of determining the amount of application under clause (a) or clause (b), the provisions of sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head "Profits and gains of business or profession".] ^61[Explanation 3A.-For the purposes of this sub-section, where the property held under a trust or institution includes any temple, mosque, gurdwara, church or other place notified under clause (b) of sub-section (2) of section 80G, any sum received by such trust or institution as voluntary contribution for the purpose of renovation or repair of such temple, mosque, gurdwara, church or other place, may, at its option, be treated by such trust or institution as forming part of the corpus of the trust or the institution, subject to the condition that the trust or the institution,- (a) applies such corp....
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.... or before the 31st day of March, 2021;] (ii) application for charitable or religious purposes, from any loan or borrowing, shall not be treated as application of income for charitable or religious purposes: Provided that the amount not so treated as application, or part thereof, shall be treated as application for charitable or religious purposes in the previous year in which the loan or borrowing, or part thereof, is repaid from the income of that year and to the extent of such repayment. ^68[Provided further that provisions of the first proviso shall apply only if there was no violation of the conditions specified- (a) in clause (c) of this sub-section; (b) in Explanations 2, 3 and 5 of this sub-section; (c) in the Explanation to this section; and (d) in clause (c) of sub-section (1) of section 13, at the time the application was made from loan or borrowing: Provided also that the amount repaid shall not be treated as application for charitable or religious purposes under the first proviso unless such repayment is made within a period of five years from the end of the previous year in which such app....
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.... (i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of the appropriate fraction of such capital gain; (ii) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset. Explanation.-In this sub-section,- (i) "appropriate fraction" means the fraction which represents the extent to which the income derived from the capital asset transferred was immediately before such transfer applicable to charitable or religious purposes; (ii) "cost of the transferred asset" means the aggregate of the cost of acquisition (as ascertained for the purposes of sections 48 and 49) of the capital asset which is the subject of the transfer and the cost of any improvement thereto within the meaning assigned to that expression in sub-clause (b) of clause (1) of section 55; (iii) "net consideration" means the full value of the consideration received or accruing as a result of the transfer of the capital asset as red....
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....ncome referred to in clause (a) or clause (b) of sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or set apart, to any trust or institution registered under section 12AA ^59[or section 12AB] or to any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, shall not be treated as application of income for charitable or religious purposes, either during the period of accumulation or thereafter.] ^22[(3) Any income referred to in sub-section (2) which- (a) is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be accumulated or set apart for application thereto, or ^23[(b) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or] (c) is not utilised for the purpose for which it is so accumulated or set apart during the period referred to in clause (a) of that sub-section ^62[****], ^24[(d) is credited or paid to any trust or ....
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....institution was dissolved.] (4) For the purposes of this section "property held under trust" includes a business undertaking so held, and where a claim is made that the income of any such undertaking shall not be included in the total income of the persons in receipt thereof, the ^31[Assessing] Officer shall have power to determine the income of such undertaking in accordance with the provisions of this Act relating to assessment; and where any income so determined is in excess of the income as shown in the accounts of the undertaking, such excess shall be deemed to be applied to purposes other than charitable or religious purposes ^32[****]. ^33[(4A) Sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) shall not apply in relation to any income of a trust or an institution, being profits and gains of business, unless the business is incidental to the attainment of the objectives of the trust or, as the case may be, institution, and separate books of account are maintained by such trust or institution in respect of such business.] ^34[(5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the f....
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.... (viii) deposits with or investment in any bonds issued by a financial corporation which is engaged in providing long-term finance for industrial development in India and ^37[which is eligible for deduction under clause (viii) of sub-section (1) of section 36]; (ix) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and ^38[which is eligible for deduction under clause (viii) of sub-section (1) of section 36]; ^39[(ixa) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for urban infrastructure in India. Explanation.-For the purposes of this clause,- (a) "long-term finance" means any loan or advance where the terms under which moneys are loaned or advanced provide for repayment along with interest thereof during a period of not less than five years; (b) "public company" shall have the meaning assigne....
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....d further that the trust or institution, whose registration has become inoperative under the first proviso, may apply to get its registration operative ^55[under section 12AA,] ^56[or section 12AB] subject to the condition that on doing so, the approval under clause (23C) of section 10 or notification ^73[under ^77[clause (23EA) or] clause (23EC) or ^78[clause (23ED) or] clause (46) or clause (46A)] of the said section, as the case may be, to such trust or institution shall cease to have any effect from the date on which the said registration becomes operative and thereafter, it shall not be entitled to exemption under the respective clauses.] ^64[Explanation.-For the purposes of this section, any sum payable by any trust or institution shall be considered as application of income in the previous year in which such sum is actually paid by it (irrespective of the previous year in which the liability to pay such sum was incurred by the trust or institution according to the method of accounting regularly employed by it): Provided that where during any previous year, any sum has been claimed to have been applied by the trust or institution, such sum shall not be allowed as a....
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....ar. (2) Where the persons in receipt of the income have complied with the following conditions, the restriction specified in clause (a) or clause (b) of sub-section (1) as respects accumulation or setting apart shall not apply for the period during which the said conditions remain complied with- (a) such persons have, by notice in writing given to the Income-tax Officer in the prescribed manner, specified the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years; (b) the money so accumulated or set apart is invested in any Government security as denned in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944), or in any other security which may be approved by the Central Government in this behalf; (3) Any income referred to in sub-section (1) or sub-section (2) as is applied to purposes other than charitable or religious purposes as aforesaid or ceases to be accumulated or set apart for application thereto or is not utilised for the purpose for which it is so accumulated in the year immediately following the expiry of....
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....rust, or, as the case may be, held under trust in part, by any amount, so much of the income applied to such purposes in India during the period of three months immediately following the previous year as does not exceed the said amount may, at the option of the person in receipt of the income [such option to be exercised in writing before the expiry of the time allowed under sub-section (1) or sub-section (2), of Section 139, whether fixed originally or on extension, for furnishing the return of income], be deemed to be income applied to such purposes during the previous year, and the income so deemed to have been applied shall not be taken into account in calculating the amount of income applied to such purposes during the immediately following previous year." Earlier, Substituted vide Section 5 of the Finance Act, 1970 w.e.f. 01-04-1971 before it was read as, "Explanation.-For the purposes of clauses (a) and (b), in computing twenty-five per cent. of the income from any such property as is referred to in the said clauses for any previous year, the income from such property for the year immediately preceding the previous year may be adopted, if that income i....
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.... the income provided the following conditions are complied with, namely :-" 16. Substituted vide Section 7 of the Finance Act, 2002 w.e.f. 01-04-2003 before it was read as, "seventy-five" 17. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 18. Substituted vide Section 6 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, "(b) the money so accumulated or set apart is - (i) invested in any Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944), or in any other security which may be approved by the Central Government in this behalf, or (ii) deposited in any account with the Post Office Saving Bank [including deposits made under the Post Office (Time Deposits) Rules, 1970] or a scheduled bank or a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank) : Provided that the money so accumulated or set apart may also be deposited, or continue to remain deposited, durin....
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.... vide Section 7 of the Finance Act, 2002 w.e.f. 01-04-2003 25. Inserted vide Section 7 of the Finance Act, 2002 w.e.f. 01-04-2003 26. Inserted vide Section 4 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1976 27. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 28. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 29. Inserted vide Section 7 of the Finance Act, 2002 w.e.f. 01-04-2003 30. Inserted vide Section 10 of the Finance Act, 2003 w.e.f. 01-04-2003 31. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1988 before it was read as, "Income-tax" 32. Omitted vide Section 5 of the Finance Act, 1970 w.e.f. 01-04-1971 before it was read as, "and accordingly chargeable to tax within the meaning of sub-section (3)" 33. Substituted vide Section 6 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1992 before it was read as, "(4A) Sub-section (1) or sub-sect....
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....the Finance Act, 2015 w.e.f. 01-04-2016 before it was read as, "(a) such person specifies, by notice in writing given to the ^17[Assessing] Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years; ^18[(b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5)]:] ^19[Provided that in computing the period of ten years referred to in clause (a), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded:] ^20[Provided further that in respect of any income accumulated or set apart on or after the 1st day of April, 2001, the provisions of this sub-section shall have effect as if for the words "ten years" at both the places where they occur, the words "five years" had been substituted.]" 45. Renumbered vide Section 8 of the Finance Act, 2017 w.e.f. 01-04-2018 before it was read as,....
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.....e.f. 01-04-2021 62. Omitted vide Section 5 of the Finance Act, 2022 w.e.f. 01-04-2023 before it was read as, "or in the year immediately following the expiry thereof" 63. Substituted vide Section 5 of the Finance Act, 2022 w.e.f. 01-04-2023 before it was read as, "shall be deemed to be the income of such person of the previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or ^25[credited or paid or], as the case may be, of the previous year immediately following the expiry of the period aforesaid." 64. Inserted vide Section 5 of the Finance Act, 2022 w.e.f. 01-04-2022 65. Substituted vide Section 7 of the Finance Act, 2023 w.e.f. 01-04-2023 before it was read as, "before the expiry of the time allowed" 66. Substituted vide Section 7 of the Finance Act, 2023 w.e.f. 01-04-2023 before it was read as, "deposit; and" 67. Inserted vide Section 7 of the Finance Act, 2023 w.e.f. 01-04-2023 68. Inserted vide Section 7 of the Finance Act, 2023 w.e.f.....