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TMI BlogInsertion of new section 80FX X X X Extracts X X X X X X X X Extracts X X X X ..... d) a trust or institution declared by the Board, by notification in the Official Gazette, to be a trust or institution of national importance, having regard to the objects set out in the instrument creating the trust or establishing the institution, the opinion of such experts in the respective fields of activity of the trust or institution as the Board may think fit to consult, and other relevant factors, there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified hereunder, namely :- (i) any amount applied in India by the person referred to in clause (a), or by the trust or institution referred to in clause (d), during the previous year wholly and exclusively to the purposes of the trust or institution; (ii) any amount applied in India by the person referred to in clause (b) during the previous year wholly and exclusively to the charitable or religious purposes of the trust; (iii) any amount applied outside India by the person referred to in clause (c) during the previous year wholly and exclusively for the benefit of citizens of India abroad or for promoting international welfare in which India is interested, where the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts or quantum of the revenue, by general or special order, impose, and such conditions may include a condition that a nominee of the Board shall, notwithstanding anything contained in any other law for the time being in force or in any instrument constituting the trust or institution concerned or governing the working thereof, be appointed on the Board of trustees of the said trust or, as the case may be, the governing body of the institution. (3) The deduction under sub-section (1) shall not be allowed where - (a) any part of the property of the trust or institution is held for a private religious purpose which does not ensure for the benefit of the public or any part of the income from such property is applied to any such purpose as aforesaid; (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, the trust or institution is created or established for the benefit of any particular religious community or caste; (c) (i) in the case of a trust or an institution created or established after the commencement of this Act, any part of the income of the trust or institution, under the terms of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use of any interested person for any period during the previous year without charging adequate rent or other compensation; (c) any amount is paid by way of salary, allowance of otherwise during the previous year to any interested person 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) the services of the trust or institution are made available to any interested person during the previous year without adequate remuneration or other compensation; (e) any share, security or other property is purchased by or on behalf of the trust or institution from any interested person during the previous year for a consideration which is more than adequate; (f) any share, security or other property is sold by er om behalf of the trust or institution to any interested person during the previous year for a consideration which is less than adequate; (g) any income or property of the trust or institution is diverted during the previous year in favour of any interested person: Provided that this clause shall not apply where the income, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by such person, trust or institution in respect of such business; suoh accounts are maintained on the cash system of accounting and are audited by an accountant as defined in the Explanation below sub-section (2) of section 288, and the person, trust or institution furnishes, along with the return of income for the relevant assessment year, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed; (b) in computing the profits and gains of such business, no deduction shall be allowed in respect of any expenditure which results directly or indirectly in the provision of any remuneration, perquisite, benefit or amenity to any interested person, whether for any services rendered or otherwise; (c) the provisions of sections 71 and 72 shall not be applicable in relation to any loss pertaining to such business; (d) any amount referred to in clause (i) or clause (ii) or clause (iii) of sub-section (1), in so far as such amount is applied out of the profits and gains of such business, shall qualify for the deduction under that sub-section, if- (i) such amount is so applied during the previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution; (ii) any person who has made a substantial contribution to the trust or institution, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds twenty-five thousand rupees; (iii) where such author, founder or person is a Hindu undivided family, a member of the family or any relative of such member; (iv) any trustee of the trust or manager (by whatever name called) of the institution; (v) any relative of any such author, founder, person, member, trustee or manager as aforesaid; (vi) any concern in which any of the persons referred to in sub-clauses (i), (ii), (iii), (iv) and (v) has a substantial interest; (b) "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 ascendant or descendant of a brother or sister of either the indivi ..... 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