Scribd
Upload
2 views1 page

Sec - 13 Notes

Uploaded by

pruthvichaithanya30
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2 views1 page

Sec - 13 Notes

Uploaded by

pruthvichaithanya30
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Sec -13 Denial of exemptions

A) Income of a trust or institution registered u/s 10(23C) or 11 shall not be


eligible for exemption under the following circumstances and situations:
a) Income under trust if such trust is for private religious purposes . It
means if it does not give any benefit to the public in general. (only for sec
11 trusts)

b) Income from trust set up for charitable purposes or any institution has
been established for the benefit of any particular religious community
or cast.
(However, if it is established for the benefit of SC, ST, BC or women or
children, then the above provision shall not be applicable).

c) Income of trust is applied for the benefit of the specified persons


referred to u/s 13(3). *
[Sec:56(2)(x) shall not be applicable to persons who is the recipient of any
sum of money or property received from trust regd u/s 12AA/AB .
But it shall be applicable if it is gifted to specified persons u/s 13(3)]

d) Deposit or investment of funds in impermissible modes :


If the trust deposits or invests it’s funds in modes other than those
specified u/s 11(5), or
It holds shares of a co other than a public co or shares prescribed as a
form of investment u/s 11(5),or
any funds representing the profits and gain of the business
Then such funds shall not be eligible for exemption.

B)

You might also like