Ashish Kotecha (Partner) (93 Points)
20 February 2013There is trust established for religious purpose.
1. Whether these trusts are eligible for exemption u/s 11 of the Income Tax Act,1961?If yes, what are the conditions and what is the procedure to claim exemption?
2. Whether it makes any difference where it is public trust or private trust?
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 20 February 2013
In my view.
as per sec.13(1)a If it is a trust formed for private religious purpose then benefit of section 11 would not apply.
To answer the second question the words of Sec.13(1)a read as follows "any part of income of property held undera trsut for private religious purpose which does not enure for the benefit of the public"
Since they have mentioned clearly that it has to be for the benefit of public, it necessarily has to be a public charitable trust.
We can wait for other views as well.
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