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CA FINAL-DIRECT TAXES-CHARITABLE TRUST

Rahul (CA Practice ) (1818 Points)

09 October 2007

Hello friends my problem relates to Charitable trust. I m confused in section 12(2) and Section 13(6).

Both Relates to Educational and medical facilitie to specified person.

I want to know what is the difference between section 12(2) and section 13(6).

Thanks in advance.

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CA. Dashrath Maheshwari (TaXpert) (15090 Points)
Replied 09 October 2007

both r very much different. plz read sections deeply: Sec12-Income of trusts or institutions from contributions. 12. (2) The value of any services, being medical or educational services, made available by any charitable or religious trust running a hospital or medical institution or an educational institution, to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13, shall be deemed to be income of such trust or institution derived from property held under trust wholly for charitable or religious purposes during the previous year in which such services are so provided and shall be chargeable to income-tax notwithstanding the provisions of sub-section (1) of section 11. sec13-Section 11 not to apply in certain cases. 13. (6) Notwithstanding anything contained in sub-section (1) or sub-section (2), but without prejudice to the provisions contained in sub-section (2) of section 12, in the case of a charitable or religious trust running an educational institution or a medical institution or a hospital, the exemption under section 11 or section 12 shall not be denied in relation to any income, other than the income referred to in sub-section (2) of section 12, by reason only that such trust has provided educational or medical facilities to persons referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3).]