{"id":769,"date":"2020-05-18T14:07:10","date_gmt":"2020-05-18T08:37:10","guid":{"rendered":"https:\/\/vdtc.co.in\/?p=769"},"modified":"2020-05-18T14:07:11","modified_gmt":"2020-05-18T08:37:11","slug":"taxation-of-charitable-religious-trust","status":"publish","type":"post","link":"https:\/\/vdtc.co.in\/?p=769","title":{"rendered":"Taxation of Charitable\/Religious Trust"},"content":{"rendered":"\n<p>Charitable trusts are the trusts which are formed charitable purposes like- to provide relief to poor, medical relief, education,\u00a0 preservation of environment\/ monuments, the advancement of objects of general public utility, religious purpose, etc. Their taxation has always been a subject of concern. The income of such trust is taxed as per the provisions of section 11-13 of the Income Tax Act, 1961 rather than as per their relevant provisions. Let us discuss the major areas related to taxation of income of such charitable\/religious trusts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Income tax on Charitable Institution or<\/strong><strong> <\/strong><strong>Trust<\/strong><\/h3>\n\n\n\n<p>We have discussed below income tax on various categories of income of charitable trust:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"585\" height=\"1024\" src=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/05\/1_page-0001-2-1-585x1024.jpg\" alt=\"\" class=\"wp-image-773\" srcset=\"https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/05\/1_page-0001-2-1-585x1024.jpg 585w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/05\/1_page-0001-2-1-171x300.jpg 171w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/05\/1_page-0001-2-1-768x1345.jpg 768w, https:\/\/vdtc.co.in\/wp-content\/uploads\/2020\/05\/1_page-0001-2-1.jpg 843w\" sizes=\"(max-width: 585px) 100vw, 585px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How should income be applied to be exempt<\/strong><\/h3>\n\n\n\n<p>To be exempt, trust is required to apply at least 85% of its income to charitable or religious purposes in India. As per the definition provided under tax provisions, charitable purpose includes the following:<br><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Relief of the poor<\/li><li>Education<\/li><li>Yoga<\/li><li>Medical relief<\/li><li>Preservation of environment or places or objects of artistic or historic interest.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Where should accumulated income be invested?<\/strong><\/h3>\n\n\n\n<p>Such accumulations must be through the following modes of investment:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Investment in government saving certificate\/UTI<\/li><li>Deposit in post office savings bank\/scheduled bank\/co-operative bank<\/li><li>Investment in IMP (immovable property)<\/li><li>Investment in any security for money created and issued by the CG or SG<\/li><li>Company debentures fully and unconditionally guaranteed by CG or SG<\/li><li>Investment or deposit in the public sector company<\/li><li>Deposit with or investment in bonds of a financial corporation or public company engaged in providing long term finance for India\u2019s industrial development<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Charitable trusts are the trusts which are formed charitable purposes like- to provide relief to poor, medical relief, education,\u00a0 preservation of environment\/ monuments, the advancement of objects of general public utility, religious purpose, etc. Their taxation has always been a subject of concern. The income of such trust is taxed as per the provisions of<\/p>\n<p><span class=\"more-wrapper\"><a class=\"more-link button\" href=\"https:\/\/vdtc.co.in\/?p=769\">Continue reading<\/a><\/span><\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-769","post","type-post","status-publish","format-standard","hentry","category-income-tax"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/769"}],"collection":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=769"}],"version-history":[{"count":2,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/769\/revisions"}],"predecessor-version":[{"id":775,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=\/wp\/v2\/posts\/769\/revisions\/775"}],"wp:attachment":[{"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vdtc.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}