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Citedby 276 docs - [View All]
Commissioner Of Income-Tax vs Ziarat Mir Syed Ali Hamdani on 17 November, 2000
Cit vs G. R. Govindarajulu & Sons ... on 7 September, 2004
The Addl. Commissioner Ofincome ... vs The A.L.N. Rao Charitable Trust on 13 October, 1995
Hindusthan Welfare Trust vs Income-Tax Officer on 28 April, 1988
Commissioner Of Income-Tax vs P.S.G. & Sons Charities on 25 October, 1995

[Section 11] [Complete Act]
Central Government Act
Section 11(1) in The Income- Tax Act, 1995
(1) Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income-
(a) 3 income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of twenty- five per cent of the income from such property;
(b) income derived from property held under trust in part only for such purposes, the trust having been created before the commencement of this Act, to the extent to which such income is applied to such purposes in India; and, where any such income is finally set apart for application to such purposes in India, to the extent to which the income so set apart is not in excess of twenty five per cent of the income from such property;]
(c) income 4 derived] from property held under trust-
(i) created on or after the 1st day of April, 1952 , for a charitable purpose which tends to promote international welfare in which India is interested, to the extent to which such income is applied to such purposes outside India, and
1. Reintroduced by the Direct Tax Laws (Amendment) Act, 1989 with effect from 1- 4- 1989 with some modifications. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987 with effect from the same date.
3. Substituted by the Taxation Laws (Amendment) Act, 1975, w. e. f. 1- 4- 1976. Earlier, clauses (a) and (b) were amended by the Finance Act, 1970, w. e. f. 1- 4- 1971
4. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973.
(ii) for charitable or religious purposes, created before the 1st day of April, 1952 , to the extent to which such income is applied to such purposes outside India: Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income;
(d) 1 income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution.] 2 Explanation.- For the purposes of clauses (a) and (b),-
(1) in computing the twenty- five per cent of the income which may be accumulated or set apart, any such voluntary contributions as are referred to in section 12 shall be deemed to be part of the income;
(2) if, in the previous year, the income applied to charitable or religious purposes in India falls short of seventy- five per cent of the income derived during that year from property held under trust, or, as the case may be, held under trust in part, by any amount-
(i) for the reason that the whole or any part of the income has not been received during that year, or
(ii) for any other reason, then-
(a) in the case referred to in sub- clause (i), so much of the income applied to such purposes in India during the previous year in which the income is received or during the previous year immediately following as does not exceed the said amount; and
(b) in the case referred to in sub- clause (ii), so much of the income applied to such purposes in India during the previous year immediately following the previous year in which the income was derived as does not exceed the said amount, may, at the option of the person in receipt of the income (such option to be exercised in writing before the expiry of the time allowed under sub- section (1) 3 ] of section 139 4 ] for furnishing the return of income) be deemed to be income applied to such purposes during the previous year in which the income was derived; and the income so deemed to have been applied shall not be taken into account in calculating the amount of income applied to such purposes, in the case referred to in sub- clause (i), during the previous year in which the income is received or during the previous year immediately following, as the case may be, and, in
1. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w. e. f. 1- 4- 1989.
2. Substituted by the Taxation Laws (Amendment) Act, 1975, w. e. f. 1- 4- 1976. The Explanation was also substituted by the Finance Act, 1970, w. e. f. 1- 4- 1971
3. The words" or sub- section (2)" omitted by the Direct Tax Laws (Amendment) Act, 1989, w. e. f. 1- 4- 1989.
4. The words", whether fixed originally or on extension", omitted, ibid.
the case referred to in sub- clause (ii), during the previous year immediately following the previous year in which the income was derived.)
(1A) 1 For the purposes of sub- section (1),-
(a) where a capital asset, being property held under trust wholly for charitable or religious purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely-
(i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of such capital gain;
(ii) where only a part of the net consideration is utilised for acquiring the new capital asset, so much of such capital gain as is equal to the amount, if any, by which the amount so utilised exceeds the cost of the transferred asset;
(b) where a capital asset, being property held under trust in part only for such purposes, is transferred and the whole or any part of the net consideration is utilised for acquiring another capital asset to be so held, then, the appropriate fraction of the capital gain arising from the transfer shall be deemed to have been applied to charitable or religious purposes to the extent specified hereunder, namely:-
(i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of the appropriate fraction of such capital gain;
(ii) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset. Explanation.- In this sub- section,-
(i) " appropriate fraction" means the fraction which represents the extent to which the income derived from the capital asset transferred was immediately before such transfer applicable to charitable or religious purposes;
(ii) " cost of the transferred asset" means the aggregate of the cost of acquisition (as ascertained for the purposes of sections 48 and 49) of the capital asset which is the subject of the transfer and the cost of any improvement thereto within the meaning assigned to that expression in sub- clause (b) of clause (1) of section 55;
(iii) " net consideration" means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer.]
1. Inserted by the Finance (No. 2) Act, 1971, w. r. e. f. 1- 4- 1962.
(1B) 1 Where any income in respect of which an option is exercised under clause (2) of the Explanation to sub- section (1) is not applied to charitable or religious purposes in India during the period referred to in sub- clause (a) or, as the case may be, sub- clause (b), of the said clause, then such income shall be deemed to be the income of the person in receipt thereof-
(a) in the case referred to in sub- clause (i) of the said clause, of the previous year immediately following the previous year in which the income was received, or
(b) in the case referred to in sub- clause (ii) of the said clause, of the previous year immediately following the previous year in which the income was derived.]