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Exemption withdrawn if specific conditions not satisfied - Section 11(3) - Income Tax - Ready Reckoner - Income TaxExtract Exemption withdrawn if specific conditions not satisfied - Section 11(3) Any income referred to in section 11(2) which is applied to purposes other than charitable or religious purposes for which it was accumulated or set apart then it shall be deemed to be the income of the previous year in which it is so applied or ceases to remain invested in modes specified in section 11(5) , then it shall be deemed to be the income of the previous year in which it so ceases or is not utilized within specific time then it shall be taxable in the 'last year' of specific period or is credited or paid to any trust registered under section 12AA or to any specified institutions referred to in section 10(23C) , then it shall be deemed to be the income of the previous year in which it is so credited or paid. Notes: 15% which is set apart is not subject to any condition and if any amount is donated to other trust registered under section 12AA out of 15% accumulated income, then the amount donated cannot be said to be violation of 11(2) and shall not be deemed as income of the trust. Income Taxable u/s 115BBI @30% in the years of violation.
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