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Incomes not exempted

The above said exemptions are not available if the income is transferred by the assessee in favor of another person without transfer of the property producing the income or when income arises from the property

transferred by assessee by way of revocable transfer that is, a transfer which can be nullified by the person making the transfer at his will and convenience.

  • The income of the trust being profits and gains of business of the trust is exempted only if the business of the trust is incidental to the attainment of the objects of the trust and separate books of accounts are maintained by the trust in respect of the business.
  • Income accrued from the property held under a private religious trust, which does not endure for the benefit of the public, does not enjoy any exemption under the Income Tax Act.
  • If a public charitable institution is crated for the benefit of any particular religious community or caste except the one created for the benefit of scheduled casts, backward classes, scheduled tribes or women and Children only no exemption is available.
  • No exemption is available for the income of a public religious or charitable trust established after 1.4.1962 which ensures as is applied directly or indirectly for the benefit of
  1. author of the trust
  2. any person who has made substantial contributions i.e., total contribution of more than Rs.50,000/-
  3. where author of trust is Hindu Undivided family, any member of such a family
  4. trustee of the trust
  5. any relative of the persons aforesaid as any concern in which the persons aforesaid have substantial interest.

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