Question: What Is Section 11 Of Income Tax Act?

What is Section 11 and 12 of Income Tax Act?

Section 2(15) defines Charitable Purpose and sections 11, 12, 12A, 12AA and 13 of the Income –tax Act, are the main sections that deal with scheme of taxation exemption in respect of income of charitable or religious trusts/institution.

Section 11 and 12 of the income tax act provides exemptions to NGO’s..

What is section1 11?

Income from Property held under Trust wholly for Charitable or Religious Purposes [Section 11(1)(a)]: Income derived from property held under trust, wholly for charitable and religious purposes, shall be exempt— to the extent such income is applied in India for such purposes; and.

What is section 54f of Income Tax Act?

As per the Income Tax Act’s Section 54F, exemption of capital gain is made available in the situation of long term capital assets transfer against the investment one makes in a residential house. … The net consideration is re-invested in constructing 1 residential property in India in three years from the transfer date.

Why is 12a registration required?

The purpose of the registration is to be exempted from the payment of income tax. 12A registration is generally applied for immediately after incorporation. Section 8 Companies, Trusts and NGOs which have obtained 12A registration enjoy exemption from paying income tax on their surplus income.

What is Section 10 11 of income tax?

Section 10(11) of the income tax act—payment of statutory provident fund. Any sum is received of the statutory provident fund relating to the contribution, amount and interest on his termination from the company or firm will be exempted.

What is Section 12 A?

Section 12A of Income Tax Act. Home Taxes in India Section 12A of Income Tax Act. Under the Income Tax Act, 1961, non-profit entities such as charitable trusts, religious organizations, NGOs which are registered under Section 12A are eligible to claim full exemption from income tax.

What is difference between 12a and 12aa?

Income Tax – Trust, Society and Section 8 Company can seek registration u/s 12A to claim exemption under provisions of Income Tax Act’1961, if certain conditions are satisfied. Section 12A deals with registration of trust and section 12AA deals with procedure for registration of trust….

What is the difference between 12a and 80g?

To summarise, registering under the 12A section allows the NGO exemption from tax rates. Failing to do will make them applicable for ITR filling. The 80G section, on the other hand, ensures that a person donating to the NGO can deduct the amount from their taxable income, which leads to more donations.

What is 80g & 12aa certificate?

An 80G certification is one that is granted to certain not-for-profit organisations by the Income Tax Department, granting their donors the ability to avail of a tax deduction on donations. … Only NGOs and non-profitable institutions with a 12A certificate are eligible for 80G certification.