Is exemption of Income to NGO, Section 25 Company, Charitable Trust and Society can forfeiture? Provision in Section 13 for forfeiture of Exemption
As per Section 13 of the Income Tax
Act, there are circumstances in which benefit of
provisions of section 11 and section 12 shall not be
available in respect of application of income or part
thereof. These circumstances are listed as under:-
(iii) The income is for the benefit
of any interested person mentioned in section 13(3) or
Explanation I to Section 13(6) respectively.
(iv) The income is invested or continues to be invested in forms other than the forms specified in section 11(5).
In the above said circumstances, the Assessing officer can forfeiture the Income Tax exemption given to NGO, Charitable Trust, Section 25 Company, Charitable Society and other Charitable Institutions.