80G Exemption

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This discussion clarifies the applicability of Section 80G tax exemption for educational institutions. While educational objectives are considered charitable, institutions must operate on a 'no profit' basis to qualify for 80G. Even if fees are collected, providing an undertaking that the school is run without profit is crucial for obtaining the exemption, especially if registered under Section 12A.

vijay

vijay (Querist)
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18 February 2021 Dear sir,
Is 80 G not applicable for charitable and educational institutions. I was told by a CA that educational institutions make profit. It was suggested to remove delete educational objectives from the trust deed.

I am not sure it is true, is there any new amendment for where 80G is only for charitable not for educational objects.

Appreciate your guidance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2021 'Education' Is An Object, Charitable Per Se Under The I.T Act. ... The income of a charitable trust or a society under whose aegis these schools run is exempt from Income tax according to the provisions of Section 11, 12 and 13of the Income Tax Act.
80G applicable for educational institutions registered under section 12A and run not for profit.

vijay

vijay (Querist)
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19 February 2021 The trust runs a school which collects fees hence the CIT office said 80 G will not be given as the school generates profits.. please suggest

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2021 Give an undertaking that school is run on no profit basis, eventhough fees is collected.

vijay

vijay (Querist)
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19 February 2021 Ok. Thank you sir for your valuable guidance.

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