Following incomes are exempted from the application of income tax and no tax is payable on them.
1) Income derived from property held under trust wholly for charitable or religious purpose
To the extent the income is applied for such
to the extent but not exceeding 25% of such
income, the income is accumulated or set apart for application to such purposes
2) Income derived from property held under trust partly only for charitable or religious purpose.
3) Income derived from
property held under trust to the extent the income is applied for the purposes
of the trust outside
a. in case of a trust created on or after 1.4.1962 if the trust was created for a charitable purpose which tends to promote international welfare in which India is interested or
b. in case of a trust created before 1.4.1952 if the trust was created for charitable and religious purposes.
4) Income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust.