Tax exemption under section 1023 of the income tax act 1961

Most of the charitable trusts, big or small are registered us 12aa of the act and claim exemption us 11. Ngos in india claim exemption u s 11 by registering us 12aa of the income tax. Section a of the income tax act, 1961 grants exemption from tax to political parties in respect of their income specified below. However, a few also claim tax exemption under the relatively less. Exemption under section 54gb of income tax act 1961. The objective of section 10 of the income tax act is to reduce the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and so on. Taxpayers are normally aware of deduction under the income tax act, 1961 for which they are eligible but it is noticed that taxpayers are found unaware of taxability of various allowances and exemptions available to them under different sources of income i. The university claimed exemption under section 10 23c iiiab of the act.

Exemption under section 1023ciii ab of the income tax. Article is been prepared keeping in view the amendments made by finance no. Click to view the institutions registered under section 80g, 12 a and more. In order to claim exemption under section 54gb, the claimant is required to reinvest the amount within a period of one year from the date of transfer.

According to section 10 of the income tax act 1961, the salaried employees are entitled to enjoy the tax exemption. Section 11 is a popular section for claiming exemption from income tax among the nongovernment charitable trusts and institutions. However, if the amount is not invested within the due date of filing of the income tax return, then, the claimant is required to deposit the amount into the capital gain deposit account scheme. Section 54g of the income tax act provides exemption towards capital gain arisen on the transfer of capital assets like plant or machinery or land or building which is forming part of an industrial undertaking being situated in an urban area.

Audit report under section 12ab of the incometax act. Analysis of the income tax exemptions available to certain educational institutions under section 10 23c of the income tax act, 1961 and comparison of the same with exemption available under section 11. This article discusses in brief about income which are exempt from tax under income tax, 1961 and covers income exempt under section 101 to section 10 49. Such transfer should be on account of shifting of industrial undertaking from the urban area to a rural area. Audit report under section 12ab of the income tax act, 1961, in the case of charitable or religious trusts or institutions x x x x extracts x x x x full text of the document. The assessing officer held that the university is not an university not existing for purposes of profit as contemplated by section 10 23c iiiab of the act and that it is not wholly or substantially financed by the government.