Section 13 - Section 11 not to apply in certain cases - Income-tax Act, 1961

1 [Section 11 not to apply in certain cases. 13. (1) Nothing contained in section 11 2 [ or section 12 ] shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- ( a ) any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public; ( b ) in the case of a trust for charitable purposes or a charitable institution created or established after the commence ment of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular reli gious community or caste; ( bb ) 3 [ * * * ] ( c ) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof- ( i ) if such trust or institution has been created or estab lished after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or ( ii ) if any part of such income or any property of the trust or the institution (whenever created or established) is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in 28 [ sub-section (3), such part of income as referred to in sub-clauses (i) and (ii) ] : Provided that in the case of a trust or institution created or established before the commencement of this Act, the provisions of sub-clause ( ii ) shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-section (3), if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution : Provided further that in the case of a trust for religious pur poses or a religious institution (whenever created or estab lished) or a trust for charitable purposes or a charitable institution created or established before the commencement of this Act, the provisions of sub-clause ( ii ) shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-section (3) in so far as such use or application relates to any period before the 1st day of June, 1970; 4 [ ( d ) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year- ( i ) any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11; or ( ii ) any funds of the trust or institution invested or deposited before the 1st day of March, 1983 otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11 continue to remain so invested or deposited after the 30th day of November, 1983; or 5 [ (iii) any shares in a company, other than- (A) shares in a public sector company ; (B) shares prescribed as a form or mode of investment under clause (xii) of sub-section (5) of section 11, are held by the trust or institution after the 30th day of 29 [ November, 1983, to the extent of such deposits or investments referred to in sub-clauses (i), (ii) and (iii) ] : ] Provided that nothing in this clause shall apply in relation to- ( i ) any assets held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973 6 [ *** ]; 7 [ ( ia ) any accretion to the shares, forming part of the corpus mentioned in clause ( i ), by way of bonus shares allotted to the trust or institution ;] ( ii ) any assets (being debentures issued by, or on behalf of, any company or corporation) acquired by the trust or institution before the 1st day of March, 1983; 8 [ ( iia ) any asset, not being an investment or deposit in any of the forms or modes specified in sub-section (5) of section 11, where such asset is not held by the trust or institution, otherwise than in any of the forms or modes specified in sub-section (5) of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 9 [ 1993 ] , whichever is later ;] ( iii ) any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment year. Explanation. -Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause ( iii ) of this proviso shall not apply unless the trust or institution maintains separate books of account in respect of such business .] 31 [ (iv) any asset referred to in sub-clauses (i), (ia) and (ii) of clause (b) of the third proviso to clause (23C) of section 10 or any accretion to the shares, forming part of the corpus mentioned in the said sub-clauses (i) and (ia) and voluntary contributions referred to in sub-clause (iv) of clause (b) of the said proviso. ] 10 [ Explanation . - For the purposes of sub-clause ( ii ) of clause ( c ), in determining whether any part of the income or any property of any trust or institution is during the previous year used or applied, directly or indirectly, for the benefit of any person referred to in sub-section (3), in so far as such use or application relates to any period before the 1st day of July, 1972, no regard shall be had to the amendments made to this section by section 7 [other than sub-clause ( ii ) of clause ( a ) thereof] of the Finance Act, 1972 .] (2) Without prejudice to the generality of the provisions of clause ( c ) 11 [ and clause ( d ) ] of sub-section (1), the income or the property of the trust or institution or any part of such income or property shall, for the purposes of that clause, be deemed to have been used or applied for the benefit of a person referred to in sub-section (3),- ( a ) if any part of the income or property of the trust or institution is, or continues to be, lent to any person referred to in sub-section (3) for any period during the previous year without either adequate security or adequate interest or both; ( b ) if any land, building or other property of the trust or institution is, or continues to be, made available for the use of any person referred to in sub-section (3), for any period during the previous year without charging adequate rent or other compensation; ( c ) if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub-section (3) out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services; ( d ) if the services of the trust or institution are made available to any person referred to in sub-section (3) during the previous year without adequate remuneration or other compensation; ( e ) if any share, security or other property is purchased by or on behalf of the trust or institution from any person referred to in sub-section (3) during the previous year for consideration which is more than adequate; ( f ) if any share, security or other property is sold by or on behalf of the trust or institution to any person referred to in sub-section (3) during the previous year for consideration which is less than adequate; 12 [ ( g ) if any income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub-section (3): Provided that this clause shall not apply where the income, or the value of the property or, as the case may be, the aggregate of the income and the value of the property, so diverted does not exceed one thousand rupees; ] ( h ) if any funds of the trust or institution are, or continue to remain, invested for any period during the previous year (not being a period before the 1st day of January, 1971), in any concern in which any person referred to in sub-section (3) has a substantial interest. (3) The persons referred to in clause ( c ) of sub-section (1) and sub-section (2) are the following, namely :- ( a ) the author of the trust or the founder of the institution; 32 [ (b) any person whose total contribution to the trust or institution, during the relevant previous year exceeds one lakh rupees, or, in aggregate up to the end of the relevant previous year exceeds ten lakh rupees, as the case may be; ] ( c ) where such author, founder or person is a Hindu undivided family, a member of the family; 15 [ ( cc ) any trustee of the trust or manager (by whatever name called) of the institution ;] ( d ) any relative of any such author, founder, 33 [ **** ] 16 [ member, trustee or manager ] as aforesaid; ( e ) any concern in which any of the persons referred to in clauses ( a ), 34 [ **** ] ( c ) 17 [ , ( cc ) ] and ( d ) has a substantial interest. (4) Notwithstanding anything contained in clause ( c ) of sub-section (1) 18 [ but without prejudice to the provisions contained in clause ( d ) of that sub-section ] , in a case where the aggregate of the funds of the trust or institution invested in a concern in which any person referred to in sub-section (3) has a substantial interest, does not exceed five per cent of the capital of that concern, the exemption under section 11 19 [ or section 12 ] shall not be denied in relation to any income other than the income arising to the trust or the institution from such investment, by reason only that the 20 [ funds ] of the trust or the institution have been invested in a concern in which such person has a substantial interest. 21 [ (5) Notwithstanding anything contained in clause ( d ) of sub-section (1), where any assets (being debentures issued by, or on behalf of, any company or corporation) are acquired by the trust or institution after the 28th day of February, 1983 but before the 25th day of July, 1991, the exemption under section 11 or section 12 shall not be denied in relation to any income other than the income arising to the trust or the institution from such assets, by reason only that the funds of the trust or the institution have been invested in such assets if such funds do not continue to remain so invested in such assets after the 31st day of March, 1992 .] 22 [ (6) Notwithstanding anything contained in sub-section (1) or sub-section (2), but without prejudice to the provisions contained in sub-section (2) of section 12, in the case of a charitable or religious trust running an educational institution or a medical institution or a hospital, the exemption under section 11 or section 12 shall not be denied in relation to any income, other than the income referred to in sub-section (2) of section 12, by reason only that such trust has provided educational or medical facilities to persons referred to in clause ( a ) or clause ( b ) or clause ( c ) or clause ( cc ) or clause ( d ) of sub-section (3). ] 23 [ (7) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof, any anonymous donation referred to in section 115BBC on which tax is payable in accordance with the provisions of that section .] 25 [ (8) Nothing contained in section 11 or section 12 shall operate so as to exclude any income from the total income of the previous year of the person in receipt thereof if the provisions of the first proviso to clause (15) of section 2 become applicable in the case of such person in the said previous year. ] 26 [ (9) Nothing contained in sub-section (2) of section 11 shall operate so as to exclude any income from the total income of the previous year of a person in receipt thereof, if- (i) the statement referred to in clause (a) of the said sub-section in respect of such income is not furnished on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year; or (ii) the return of income for the previous year is not furnished by such person on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the said previous year. ] 30 [ (10) Where the provisions of sub-section (8) are applicable to any trust or institution or it violates the conditions specified under clause (b) or clause (ba) of sub-section (1) of section 12A, its income chargeable to tax shall be computed after allowing deduction for the expenditure (other than capital expenditure) incurred in India, for the objects of the trust or institution, subject to fulfilment of the following conditions, namely:- (a) such expenditure is not from the corpus standing to the credit of the trust or institution as on the end of the financial year immediately preceding the previous year relevant to the assessment year for which income is being computed; (b) such expenditure is not from any loan or borrowing; (c) claim of depreciation is not in respect of an asset, acquisition of which has been claimed as application of income, in the same or any other previous year; and (d) such expenditure is not in the form of any contribution or donation to any person. Explanation .-For the purposes of determining the amount of expenditure under this sub-section, 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 . (11) For the purposes of computing income chargeable to tax under sub-section (10), no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any other provision of this Act. ] 24 [ Explanation 1. -For the purposes of sections 11, 12, 12A 27 [ , 12AA, 12AB ] and this section, trust includes any other legal obligation and for the purposes of this section relative , in relation to an individual, means- ( i ) spouse of the individual; ( ii ) brother or sister of the individual; ( iii ) brother or sister of the spouse of the individual; ( iv ) any lineal ascendant or descendant of the individual; ( v ) any lineal ascendant or descendant of the spouse of the individual; ( vi ) spouse of a person referred to in sub-clause ( ii ), sub-clause ( iii ), sub-clause ( iv ) or sub-clause ( v ); ( vii ) any lineal descendant of a brother or sister of either the individual or of the spouse of the individual. ] Explanation 2. -A trust or institution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of clause ( b ) of sub-section (1). Explanation 3. -For the purposes of this section, a person shall be deemed to have a substantial interest in a concern,- ( i ) in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than twenty per cent of the voting power are, at any time during the previous year, owned beneficially by such person or partly by such person and partly by one or more of the other persons referred to in sub-section (3); ( ii ) in the case of any other concern, if such person is entitled, or such person and one or more of the other persons referred to in sub-section (3) are entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the profits of such concern. ] ***************** NOTES:- 1. Reintroduced vide Section 5 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 1-4-1989. Earlier , Omitted vide Section 7 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, 13. Section 11 not to apply in certain cases. - (1) Nothing contained in section 11 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof - (a) any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public; (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste; (c) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof - (i) if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or (ii) if any part such income or any property of the trust or institution (whenever created or established) is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub-section (3) : Provided that in the case of a trust or institution created or established before the commencement of this Act, the provisions of sub-clause (ii) shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-section (3), if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution : Provided further that in the case of a trust for religious purposes or a religious institution (whenever created or established) or a trust for charitable purposes or a charitable institution created or established before the commencement of this Act, the provisions of sub-clause (ii) shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-section (3) in so far as such use or application relates to any period before the 1st day of June, 1970. (2) Without prejudice to the generality of the provisions of clause (c) of sub-section (1), the income or the property of the trust or institution or any part of such income or property shall, for the purposes of that clause, be deemed to have been used or applied for the benefit of a person referred to in sub-section (3), - (a) if any part of the income or property of the trust or institution is, or continues to be, lent to any person referred to in sub-section (3) for any period during the previous year without either adequate security or adequate interest or both; (b) if any land, building or other property of the trust or institution is, or continues to be, made available for the use of any person referred to in sub-section (3), for any period during the previous year without charging adequate rent or other compensation; (c) if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub-section (3) out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services; (d) if the services of the trust or institution are made available to any person referred to in sub-section (3) during the previous year without adequate remuneration or other compensation; (e) if any share, security or other property is purchased by or on behalf of the trust or institution from any person referred to in sub-section (3) during the previous year for consideration which is more than adequate; (f) if any share, security or other property is sold by or on behalf of the trust or institution to any person referred to in sub-section (3) during the previous year for consideration which is less than adequate; (g) if a substantial portion of the income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub-section (3); or (h) if any funds of the trust or institution are, or continue to remain, invested for any period during the previous year (not being a period before the 1st day of January, 1971) in any concern in which any person referred to in sub-section (3) has a substantial interest. (3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following, namely :- (a) the author of the trust or the founder of the institution; (b) any person who has made a substantial contribution to the trust or institution; (c) where such author, founder or person is a Hindu undivided family, a member of the family; (d) any relative of any such author, founder, person or member as aforesaid; (e) any concern in which any of the persons referred to in clauses (a), (b), (c) and (d) has a substantial interest. (4) Notwithstanding anything contained in clause (c) of sub-section (1), in a case where the aggregate of the funds of the trust or institution invested in a concern in which any person referred to in sub-section (3) has a substantial interest, does not exceed five per cent. of the capital of that concern, the exemption under section 11 shall not be denied in relation to any income other than the income arising to the trust or the institution from such investment, by reason only that the moneys of the trust or the institution have been invested in a concern in which such person has a substantial interest. Explanation 1 : For the purposes of sections 11 and 12 and this section, trust includes any other legal obligation and for the purposes of this section relative also includes a lineal descendant of a brother or sister. Explanation 2 : A trust or institution created or established for the benefit of Schedule Castes, backward classes, Scheduled Tribes or woman and children shall not be deemed to be trust or institution created or established for the benefit of a religious community or caste within the meaning of clause (b) of sub-section (1). Explanation 3 : For the purposes of this section, a person shall be deemed to have a substantial interest in a concern, - (i) in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than twenty per cent. of the voting power are, at any time during the previous year, owned beneficially by such person or partly by such person and partly by one or more of the other persons referred to in sub-section (3); (ii) in the case of any other concern, if such person is entitled, or such person and one or more of the other persons referred to in sub-section (3) are entitled in the aggregate, at any time during the previous year, to not less than twenty per cent. of the profits of such concern. And was Substituted vide Section 6 of the Finance Act, 1970 w.e.f. 01-04-1971 before it was read as, 13. Section 11 not to apply in certain cases. Nothing contained in section 11 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof (a) any part of the income from the property held under a trust for private religious purposes which does not ensure for the benefit of the public; (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof, (i) if the trust or institution is created or established for the benefit of any particular religious community or caste; or (ii) if under the terms of the trust or the rules governing the institution, any part of such income endures, directly or indirectly, or if any part of such income or any property of the trust or the institution is during the previous year used or applied, directly or indirectly, for the benefit of the author of the trust or the founder of the institution or any person who has made a substantial contribution to such trust or institution or any relative of such author, founder or person and where such author, founder or person is a Hindu undivided family, any part of such income endures, or any part of such income or any such property is during the previous year used or applied, directly or indirectly, for the benefit of any member of the Hindu undivided family or any relative of any member of the family; Provided that in a case where this section applies by reason only that under the terms of the trust or the rules governing the institution any part of such income endures directly or indirectly or that any part of the income or any property of the trust or institution is, during the previous year, used or applied directly or indirectly, for the benefit of any relative of such author founder, person or member, and the amount of income so enduring or used or applied for the benefit of such relative, together with the value of the benefit derived by him from the user or application of such property, if any, during the previous year, does not exceed a sum calculated at the rate of twenty-five per cent. of the income of the trust or institution of the previous year, the provisions of this section shall have effect only in respect of that part of the income of the trust or institution which does not exceed the amount so enduring or used or applied together with the value of the benefit aforesaid. Explanation 1. For the purposes of sections 11 and 12 and this section, trust includes any other legal obligation and for the purposes of this section relative also includes a lineal descendant of a brother or sister. Explanation 2. A trust or institution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of sub-clause (i) of clause (b) of this section. And was Amended vide Section 5 of the Finance Act, 1966 w.e.f. 01-04-1966 And was Amended vide Section 5 of the Finance Act, 1963 w.e.f. 01-04-1962 2. Inserted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 3. Omitted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1984 before it was read as, (bb) in the case of a charitable trust or institution for the relief of the poor, education or medical relief, which carries on any business, any income derived from such business, unless the business is carried on in the course of the actual carrying out of a primary purpose of the trust or institution; Earlier , Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1977 4. Substituted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, (d) subject to the provisions of clause (bb), in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof assessable for any assessment year commencing on or after the 1st day of April, 1983, if any funds of the trust or institution are invested or deposited or continue to remain invested or deposited for any period during any previous year commencing on or after the 1st day of April, 1982, otherwise than, in any of the forms or modes specified in sub-section (5). Earlier , Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1977 And was Amended vide Section 7 of the Finance (No. 2) Act, 1977 w.e.f. 01-04-1978 And was Amended vide Section 5 of the Finance Act, 1982 w.e.f. 01-04-1982. 5. Substituted vide Section 10 of the Finance Act, 2007 w.e.f. 01-04-1999 before it was read as, (iii) any shares in a company not being a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act are held by the trust or institution after the 30th day of November, 1983: 6. Omitted vide Section 5 of the Finance Act, 1992 w.e.f. 01-04-1983 before it was read as, and such assets were not purchased by the trust or institution or acquired by it by conversion of, or in exchange for, any other asset 7. Inserted vide Section 5 of the Finance Act, 1992 w.e.f. 01-04-1983 8. Inserted vide Section 8 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1983 9. Substituted vide Section 5 of the Finance Act, 1992 w.e.f. 01-04-1992 before it was read as, 1992 10. Inserted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 11. Inserted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1983 12. Substituted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 before it was read as, (g) if a substantial portion of the income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub-section (3); or 13. Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1977 14. Substituted vide Section 9 of the Finance Act, 1994 w.e.f. 01-04-1995 before it was read as, twenty-five Earlier , Substituted vide Section 5 of the Taxation Laws (Amendment) Act, 1984 w.e.f. 01-04-1985 before it was read as, five 15. Inserted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 16. Substituted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 before it was read as, or member 17. Inserted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 18. Inserted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1983 19. Inserted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 20. Substituted vide Section 6 of the Finance (No. 2) Act, 1971 w.e.f. 01-04-1971 before it was read as, moneys 21. Inserted vide Section 8 of the Finance (No. 2) Act, 1991 w.e.f. 01-04-1983 Earlier , Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1977 And was Omitted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, (5) The forms and modes of investing or depositing funds referred to in clause (d) of sub-section (1) shall be (a) subject to the provisions of clause (b), in a case where such funds represent the original corpus of the trust or institution or any contributions made to the trust or institution with a specific direction that they shall form part of the corpus of the trust or institution, (i) investment in savings certificates as defined in clause (c) of section 2 of the Government Savings Certificates Act, 1959 (46 of 1959), and any other securities or certificates issued by the- Central Government under the small savings schemes of that Government; (ii) deposit in any account with the Post Office Savings Bank; (iii) deposit in any account with any nationalised bank, that is to say, any corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); (iv) investment in units in the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963); (v) investment in any security for money created and issued by the Central Government or a State Government: (vi) investment in debentures issued by, or on behalf of, any company or corporation both the principal whereof and the interest whereon are fully and unconditionally guaranteed by the Central Government or by a State Government; (vii) investment or deposit in any Government company as denned in section 617 of the Companies Act, 1956 (1 of 1956); (b) in a case where such funds represent (i) the corpus of the trust or institution immediately before the 1st day of June, 1973; or (ii) the original corpus (being assets other than cash) of any trust or institution created or established on or after the 1st day of June, 1973; or (iii) any contributions (otherwise than in cash) made to any trust or institution on or after the 1st day of June, 1973, with a specific direction, that they shall form part of the corpus of the trust or institution, any form or mode, other than investment in shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) in a company (not being a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) or a corporation established by or under a Central, State or Provincial Act); (c) in any other case, the forms or modes referred to in sub-clause (i), sub-clause (ii), sub-clause (iii) and sub-clause (iv) of clause (a). (6) Nothing contained in clause (d) of sub-section (1) shall apply in relation to any monies accumulated or finally set apart and invested or deposited in the manner referred to in clause (b) of sub-section (2) of section 11. 22. Inserted vide Section 10 of the Finance Act, 2000 w.e.f. 01-04-2001 Earlier , Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 01-04-1977 And was Omitted vide Section 7 of the Finance Act, 1983 w.e.f. 01-04-1983 before it was read as, (6) Nothing contained in clause (d) of sub-section (1) shall apply in relation to any monies accumulated or finally set apart and invested or deposited in the manner referred to in clause (b) of sub-section (2) of section 11. 23. Inserted vide Section 6 of the Finance Act, 2006 w.e.f. 01-04-2007 24. Substituted vide Section 7 of the Finance Act, 1972 w.e.f. 01-04-1973 before it was read as, Explanation 1 : For the purposes of sections 11 and 12 and this section, trust includes any other legal obligation and for the purposes of this section relative also includes a lineal descendant of a brother or sister. 25. Inserted vide Section 6 of the Finance Act, 2012 w.e.f. 01-04-2009 26. Inserted vide Section 9 of the Finance Act, 2015 w.e.f. 01-04-2016 27. Inserted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 28. Substituted vide Section 8 of the Finance Act, 2022 w.e.f. 01-04-2023 before it was read as, sub-section (3) 29. Substituted vide Section 8 of the Finance Act, 2022 w.e.f. 01-04-2023 before it was read as, November, 1983 30. Inserted vide Section 8 of the Finance Act, 2022 w.e.f. 01-04-2023 31. Inserted vide Section 9 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 32. Substituted vide Section 8 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2025 before it was read as, ( b ) any person who has made a substantial contribution to the trust or institution, 13 [ that is to say, any person whose total contribution up to the end of the relevant previous year exceeds 14 [ fifty ] thousand rupees ]; 33. Omitted vide Section 8 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2025 before it was read as, person, 34. Omitted vide Section 8 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2025 before it was read as, ( b ),