Incomes which are exempted under Section 11 of Income Tax Act,1961 (Charitable Trusts)

• November 30, 2020
• CA Chandan Agarwal's Office

Incomes which are exempted under Section 11 of the Income Tax Act,1961

Similar to Section 10, incomes mentioned in Section 11 also does not form part of the total income. There are various conditions to be fulfilled for claiming exemption under this Section. However in this article, an attempt is made to understand basically what types of incomes are exempt under this Section. So for understanding purpose Section 11(1)(a) is analyzed.

The first limb of 11(1) is reproduced hereunder:

“Section 11:

(1) Subject to the provisions of Sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income—

(a) Income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India…….”

Incomes specified in this section are exempted incomes similar to that of incomes specified in Section 10. That means the incomes specified in this Section shall not for part of the total income of the person similar to agriculture income.

Under this Section of income of a trust is exempted if it is applied for charitable or religious purposes.

Read more on: https://taxguru.in/income-tax/incomes-exempted-section-11-income-tax-act-1961.html