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What is Income of trusts or institutions from contributions? Section 12 of Income Tax Act 1961

Income of trusts or institutions from contributions is defined under section 12 of Income Tax Act 1961. Provision under this section is:

Section 12 of Income Tax Act "Income of trusts or institutions from contributions"

12. (1) Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly.

 

(2) The value of any services, being medical or educational services, made available by any charitable or religious trust running a hospital or medical institution or an educational institution, to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13, shall be deemed to be income of such trust or institution derived from property held under trust wholly for charitable or religious purposes during the previous year in which such services are so provided and shall be chargeable to income-tax notwithstanding the provisions of sub-section (1) of section 11.

Explanation.—For the purposes of this sub-section, the expression "value" shall be the value of any benefit or facility granted or provided free of cost or at concessional rate to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13.

(3) Notwithstanding anything contained in section 11, any amount of donation received by the trust or institution in terms of clause (d) of sub-section (2) of section 80G in respect of which accounts of income and expenditure have not been rendered to the authority prescribed under clause (v) of sub-section (5C) of that section, in the manner specified in that clause, or which has been utilised for purposes other than providing relief to the victims of earthquake in Gujarat or which remains unutilised in terms of sub-section (5C) of section 80G and not transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 2004 shall be deemed to be the income of the previous year and shall accordingly be charged to tax.

   
 

Income Tax Act 1961

What is Income from property held for charitable or religious purposes? Section 11 of Income Tax Act 1961

What is Income of trusts or institutions from contributions? Section 12 of Income Tax Act 1961

What is Conditions for applicability of sections 11 and 12? Section 12A of Income Tax Act 1961

What is Procedure for registration? Section 12AA of Income Tax Act 1961

What is Section 11 not to apply in certain cases? Section 13 of Income Tax Act 1961

What is Special provision relating to incomes of political parties? What is Special provisions relating to voluntary contributions received by electoral trust? Section 13A and 13B of Income Tax Act 1961

What are Heads of income? What is Expenditure incurred in relation to income not includible in total income? Section 14 and 14A of Income Tax Act 1961

What is Salaries? What are Deductions from salaries? Section 15 and 16 of Income Tax Act 1961

What is Salary, perquisite and profits in lieu of salary? Section 17 of Income Tax Act 1961

 

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