dharmada

what do you mean by dharmada?
Replies (2)

Sometimes the manufacturer charges from the buyer a specific amount, which is used for charitable purposes. This amount is known as charity amount or Dharmada. It may be compulsory or optional for the buyer.

The amount so collected in “not retained” by the manufacturer but used solely for religious or charitable purposes, thus the amount collected doesn’t go to the manufacturer or doesn’t form part of his income.

The Law Lexicon, P. Ramantha Aiyer, Badhwa define Dharamada as an endowment or gift for religious or charitable purposes.

In CIT v/s Bijli Cotton Mills (AIR 1979 SC 346), a case under the Income Tax Act, 1961, it was held that Dharmada collected for charitable purposes and spent on charity purposes is not a part of the income of the assessee. 

Why it is excisable?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details