Religious trusts

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Suhel Gupta (Querist)
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23 November 2011 Can you explain the difference between exemptions referred to as in section 10(23BBA) and 12 in relation to religious and charitable trusts

Aijaz Shaikh

Aijaz Shaikh (Expert)
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23 November 2011 10[(23BBA)any income of any body or authority (whether or not a body corporate or corporation sole) established, constituted or appointed by or under any Central, State or Provincial Act which provides for the administration of any one or more of the following, that is to say, public religious or charitable trusts or endowments (including maths, temples, gurdwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship) or societies for religious or charitable purposes registered as such under the Societies Registration Act, 1860 (21 of 1860), or any other law for the time being in force:

Provided that nothing in this clause shall be construed to exempt from tax the income of any trust, endowment or society referred to therein

[Income of trusts or institutions from contributions.

12 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.]

Difference
Section 10(23BBA)refers to the income of organisation formed by or appointed by the central or state government to monitor the trust engaged in charitable activity.

Section 12 refers to the income of trust who are itself engaged in charitable activity