India - Income Tax Act 2010 - Saarc

1.137 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 13(ii) if any part of such income or any property of the trust or theinstitution (whenever created or established) is during theprevious year used or applied,directly or indirectly for the benefit of any person referred to insub-section (3) :Provided that in the case of a trust or institution created or establishedbefore the commencement of this Act, the provisions of sub-clause (ii)shall not apply to any use or application, whether directly or indirectly,of any part of such income or any property of the trust orinstitution for the benefit of any person referred to in sub-section (3),if such use or application is by way of compliance with a mandatoryterm of the trust or a mandatory rule governing the institution :Provided further that in the case of a trust for religious purposes ora religious institution (whenever created or established) or a trust forcharitable purposes or a charitable institution created or establishedbefore the commencement of this Act, the provisions of sub-clause (ii)shall not apply to any use or application, whether directly or indirectly,of any part of such income or any property of the trust orinstitution for the benefit of any person referred to in sub-section (3)in so far as such use or application relates to any period before the 1stday of June, 1970;31[(d) 32 in the case of a trust for charitable or religious purposes or acharitable or religious institution, any income thereof, if for anyperiod during the previous year—(i) any funds 33 of the trust or institution are invested 33 or deposited 33after the 28th day of February, 1983 otherwise than in any one ormore of the forms or modes specified in sub-section (5) of section11; or(ii) any funds 33 of the trust or institution invested 33 or deposited 33before the 1st day of March, 1983 otherwise than in any one ormore of the forms or modes specified in sub-section (5) of section11 continue to remain so invested or deposited after the 30th dayof November, 1983; or34[(iii) any shares in a company, other than—31. Substituted by the Finance Act, 1983, w.e.f. 1-4-1983. Original clause was inserted by theTaxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1977. It was later on amended by theFinance (No. 2) Act, 1977, w.e.f. 1-4-1978 and by the Finance Act, 1982, w.e.f. 1-4-1982.32. See also Circular No. 596, dated 15-3-1991. For details, see Taxmann’s Master Guide toIncome-tax Act.33. For the meaning of the terms “funds”, “investments” and “deposits”, see Taxmann’s DirectTaxes Manual, Vol. 3.34. Substituted by the Finance Act, 2007, w.r.e.f. 1-4-1999. Prior to its substitution, sub-clause(iii) read as under :“(iii) any shares in a company not being a Government company as defined in section 617of the Companies Act, 1956 (1 of 1956), or a corporation established by or under aCentral, State or Provincial Act are held by the trust or institution after the 30th dayof November, 1983:”