Search Results For: Finance Act 2015

What Was Need To Change The Provisos, If One Provision Is Inserted In Section 2(15)?

QUERY: The Finance Act 2015 has inserted one proviso to section 2(15) of the Act, instead of the provisos, what was need to change the provisos?
ANSWER: Click here to read the full answer of the expert

Section 2(15) of the Act, defines a “charitable purpose”. The primary condition for grant of exemption to a trust or institution under section 11 of the Act is that the income derived from the property held under trust should be applied for charitable purpose in India. Section 2(15) inter-alia provides that advancement of any other object of general public utility shall not be charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering services in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application or retention of the income from such activity. However, at present, this restriction shall not apply if the aggregate value of the receipts from the activities referred to above is twenty five lakh rupees or less in the previous year.

Posted in Income-tax