Urgent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 February 2013
income from hostels and bus facilities of an educational institutions is commercial or charitable activity?
Guest
Guest
(Expert)
16 February 2013
if they receive any fee from student then its commercial
16 February 2013
I will prefer to disagree with CA Vivek.
Charging of fees can not be the sole ground for denial of charitable nature under income-tax. Charitable schools are allowed to charge fees. It is the overall nature of the activity that is relevant and the overall operations of the school should be directed towards needy students.
For a better idea of what constitutes running a school on commercial lines kindly refer to the ITAT judgment in the case of M/s. Rajah Sir Annamalai Chettiar Foundation Vs. The Director of income-tax (Exemptions)I.T.A.No. 1817/Mds/2010.
Thanks
Charging of fees can not be the sole ground for denial of charitable nature under income-tax. Charitable schools are allowed to charge fees. It is the overall nature of the activity that is relevant and the overall operations of the school should be directed towards needy students.
For a better idea of what constitutes running a school on commercial lines kindly refer to the ITAT judgment in the case of M/s. Rajah Sir Annamalai Chettiar Foundation Vs. The Director of income-tax (Exemptions)I.T.A.No. 1817/Mds/2010.
Thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- EXPORT COMMERCIAL INVOICE HSN CODE
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Cash balance limit and property purchases limit
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
