Section 12 - Income of trusts or institutions from contributions - Income-tax Act, 1961

1 [Income of trusts or institutions from contributions. 12. 2 [ (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. ] 3 [ (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. ] 4 [ (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 5 [ 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, 6 [ 2004 ] shall be deemed to be the income of the previous year and shall accordingly be charged to tax. ] **************** NOTES:- 1. Reintroduced vide Section 5 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 01-04-1989 Original , Section 12 was Substituted vide Section 6 of the Finance Act, 1972 w.e.f. 01-04-1973 before it was read as, 12. Income of trusts or institutions from voluntary contributions. (1) Any income of a trust for charitable or religious purposes or of a charitable or religious institution derived from voluntary contributions and applicable solely to charitable or religious purposes shall not be included in the total income of the trustees or the institution, as the case may be. (2) Notwithstanding anything contained in sub-section (1), where any such contributions as are referred to in sub-section (1) are made to a trust or a charitable or religious institution by a trust or a charitable or religious institution to which the provisions of section 11 apply, such contributions shall, in the hands of the trust or institution receiving the contributions, be deemed to be income derived from property for the purposes of that section and the provisions of that section shall apply accordingly. Earlier , section 12 was Omitted vide Section 7 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, 12. Income of trusts or institutions from contributions. -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. Numbered vide Section 9 of the Finance Act, 2000 w.e.f. 01-04-2001 3. Inserted vide Section 9 of the Finance Act, 2000 w.e.f. 01-04-2001 4. Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 2001 w.e.f. 03-02-2001 5. Inserted vide Section 8 of the Finance Act, 2002 w.e.f. 03-02-2001 6. Substituted vide Section 11 of the Finance Act, 2003 w.e.f. 03-02-2001 before it was read as, 2003 Earlier , Substituted vide Section 8 of the Finance Act, 2002 w.e.f. 03-02-2001 before it was read as, 2002