Income Exempted Under Section 10, 11 & 12 Of The Income Tax Act

Elisa (na) (920 Points)

30 January 2023  

Section 11 of the Income Tax Act, 1961, provides exemption for income derived from property held under trust wholly for charitable or religious purposes, subject to the conditions that:

  • The property is held under trust for a charitable or religious purpose
  • The income derived from such property is applied to such purpose

Section 12 of the Income Tax Act, 1961, provides exemption for income in the form of voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes.

Under the Income Tax Act, 1961, any voluntary contributions received by an Electoral Trust are exempt from tax, subject to certain conditions specified in the act.

Under the Income Tax Act, 1961, the income of an educational institute is exempt from tax under the following sections:

  • Section 10(23C)(iiiab)
  • Section 10(23C)(iiiad)
  • Section 10(23C)(vi)

Under the Income Tax Act, 1961, the income of a hospital or other institution is eligible for exemption if it satisfies the conditions prescribed under the following sections:

  • Section 10(23C)(iiiab)
  • Section 10(23C)(iiiad)
  • Section 10(23C)(vi)