India - Income Tax Act 2010 - Saarc

1.125 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 11to the extent to which the income so accumulated or set apart 50 is notin excess of 51 [fifteen] per cent of the income from such property;(b) income derived from property held under trust in part 50 only for suchpurposes, the trust having been created before the commencement ofthis Act, to the extent to which such income is applied to such purposesin India; and, where any such income is finally set apart for applicationto such purposes in India, to the extent to which the income so setapart is not in excess of 51 [fifteen] per cent of the income from suchproperty;(c) income 52 [derived] from property held under trust—(i) created on or after the 1st day of April, 1952, for a charitablepurpose which tends to promote international welfare in whichIndia is interested, to the extent to which such income is appliedto such purposes outside India, and(ii) for charitable or religious purposes, created before the 1st day ofApril, 1952, to the extent to which such income is applied to suchpurposes outside India:Provided that the Board, by general or special order, has directed ineither case that it shall not be included in the total income of theperson in receipt of such income;53[(d) income in the form of voluntary contributions made with a specificdirection that they shall form part of the corpus of the trust orinstitution.]54[Explanation.—For the purposes of clauses (a) and (b),—(1) in computing the 55 [fifteen] per cent of the income which may beaccumulated or set apart, any such voluntary contributions as arereferred 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 religiouspurposes in India falls short of 56 [eighty-five] per cent of the incomederived during that year from property held under trust, or, as thecase may be, held under trust in part, by any amount—(i) for the reason that the whole or any part of the income has notbeen received during that year, or(ii) for any other reason,50. For the meaning of the terms/expressions “income”, “property”, “such income”, “applied”,“accumulated or set apart” and “in part”, see Taxmann’s Direct Taxes Manual, Vol. 3.51. Substituted for “twenty-five” by the Finance Act, 2002, w.e.f. 1-4-2003.52. Inserted by the Finance Act, 1972, w.e.f. 1-4-1973.53. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.54. Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. Earlier, theExplanation was also substituted by the Finance Act, 1970, w.e.f. 1-4-1971.55. Substituted for “twenty-five” by the Finance Act, 2002, w.e.f. 1-4-2003.56. Substituted for “seventy-five”, ibid.