SECTION 10(23C)1 l CHARITABLE FUND OR INSTITUTION/
PUBLIC RELIGIOUS OR PUBLIC RELIGIOUS AND
CHARITABLE TRUST OR INSTITUTION

133. Application for approval under sub-clause (iv)/(v) to public charitable and religious trusts/associations/societies to be filed directly to Commissioner under whose jurisdiction case falls

Public charitable and religious trusts/associations/societies registered under the Societies Registration Act, 1860, etc., which seek notification by the Central Government under section 10(23C)(iv)/(v) are advised to file an application directly to the Commissioner of Income-tax under whose jurisdiction the case of the trust/association/society falls. In the case of a trust/association/society which enjoys recognition certificate under section 80G it will be the Commissioner who has issued the certificate. In cases where no 80G certificate has been obtained it will be the Commissioner in charge of Trust Circle.

Along with the application, the following details should be sent to the Commissioner :

    -  A copy of the deed of trust/memorandum and articles of association.

    -  A list of trustees including settlor/members of the Governing Council, etc.

    -  A photostat copy of the registration granted by the Charity Commissioner/ Registrar of Societies.

    -  A photostat copy of the communication from the Commissioner with reference to the application of the trust/society for registration under section 12A(a).

    -  A photostat copy of the latest 80G certificate issued by the Commissioner.

    -  True copies of the assessment orders passed for the last three years.

    -  Copies of audited accounts and balance sheet for the years subsequent to the assessment.

    -  Copies of annual reports wherever available.

An extra copy of this application with the enclosures may be endorsed to the Secretary (IT) (A-I), Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block, New Delhi.

Press Note : Issued by the CBDT.

134. Guidelines prescribed for approval of any educational/medical institution under section 10(23C)

See Sl. No. 148.

135. Where donations in kind are not in form of jewellery, furniture or any other notified article

1. Under section 10(23C)(iv) and (v) of the Income-tax Act, income received by certain charitable and religious funds, trusts and institutions is exempt from tax if the conditions specified for this purpose are satisfied. One such condition, as laid down in the third proviso to section 10(23C), is that the fund, trust or institution applies its income, or accumulates it for application, wholly and exclusively to the object for which it is established and it does not invest or deposit its funds (other than voluntary contributions received and maintained in the form of jewellery, furniture or any other article as the Board may, by notification in the Official Gazette specify) for any period during the previous year otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11 of the Income-tax Act.

2. References have been received from various trusts and institutions pointing out that certain funds, trusts and institutions running hospitals, creches, orphanages, schools, etc., and enjoying exemption under section 10(23C)(iv) or (v), of the Income-tax Act, often receive donations in kind from various sources for application towards their charitable purposes. These contributions may be in the shape of books, clothes for the poor, grains to feed the poor, drugs, hospital equipment, etc. It has been pointed out that all these are used as such for the purposes of the fund, trust or institution.

3. A doubt has, however, been raised as to whether the fund, trust or institution would be eligible for the tax exemption under section 10(23C)(iv) or (v) of the Act even if the donations-in-kind are not in the form of jewellery, furniture or any other article notified by the Board for the purposes of these provisions.

4. Since the donations-in-kind, of the nature referred to above, received by a fund, trust or institution, would be income within the meaning of section 2(24) of the Income-tax Act, it is clarified that use of these towards objects for which the fund, trust or institution is established would be regarded as application of income of the fund, trust or institution within the meaning of clause (a) of the third proviso to section 10(23C). Accordingly, the fund, trust or institution would be eligible for the tax exemption if the other conditions specified in section 10(23C)(iv) of the Income-tax Act are satisfied.

Circular : No. 580, dated 14-9-1990.

136. Payment of income by way of interest on securities to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv)

1. Representations have been received for grant of exemption from the requirement of deduction of income-tax at source under section 193 of the Income-tax Act, on the payment of income by way of interest on securities to Ramakrishna Math and Ramakrishna Mission whose income is exempt under clause (iv) of section 10(23C) of the Income-tax Act, 1961.

2. The matter has been examined by the Board and it has been decided that in the case of Ramakrishna Math and Ramakrishna Mission whose income is exempt under clause (iv) of section 10(23C) of the Income-tax Act, the income by way of interest on securities of Central and State Governments may be paid to the Ramakrishna Math and Ramakrishna Mission without deduction of income-tax at source. The provisions of this circular will be applicable from current financial year.

Circular : No. 745, dated 19-7-1996.

137. Issue/approval of notifications under section 10(23C)(iv) or section 35(1)(ii)/(iii) after completion of assessment, rectification of mistake consequent thereto

1. Section 10(23C)(iv) of the Income-tax Act, 1961, provides that any income received by a person on behalf of any fund or institution established for charitable purposes is not includible in the total income if the said fund or institution is notified by the Central Government in the Official Gazette, having regard to the objects of the fund or institution and its importance throughout India or throughout any State or States.

2. Section 35(1)(ii) provides for deduction out of profits computed under the head “Profits and gains of business or profession”, in respect of any sum paid to the scientific research association which has as its object the undertaking of scientific research or to a university, college or other institutions to be used for scientific research. Similarly, clause (iii) of sub-section (1) of section 35 provides for deduction in respect of any sum paid to a university, college or other institution to be used for research in social science or statistical research. The deductions under section 35(1)(ii) or sub-section 35(1)(iii) are admissible only if such association, university, college or institution is for the time being approved for the purposes of these clauses, by the prescribed authority, by notification in the Official Gazette.

3. The Board have received representations that quite often the notifications are issued much after the completion of assessments of the relevant persons for the relevant assessment years. The Assessing Officers have rejected applications under section 154 on the ground that the notification was issued subsequent to the passing of the assessment order and thus there was no mistake apparent from the record.

4. The matter has been examined. The Board are of the view that in view of the notification issued at a subsequent date but which is applicable to the assessment year/s involved in the application, there is a mistake apparent from the record which can be rectified under section 154 of the Income-tax Act. However, while disposing of the rectification applications, the Assessing Officer must ensure that the conditions subject to which the approval was granted are satisfied.

Circular : No. 725, dated 16-10-1995.

138. Chronological list of charitable fund or institution notified under sub-clause (iv) of clause (23C) for the purpose of exemption of income received on behalf thereof

Fund/Institution

Effective for/from

 

Notification1

 

assessment year

 

No.

Date

Missionaries of Charity,

 

 

 

 

Calcutta

1976-77

SO

1920

1-4-1976

Srimath Hrishikesha Teertha

 

 

 

 

Swamier Trust, Palimar Muth,

 

 

 

 

Udipi (Karnataka)

1976-77

SO

2145

17-4-1976

Special Fund for

 

 

 

 

Reconstruction and

 

 

 

 

Rehabilitation of Ex-

 

 

 

 

Servicemen

1967-68

SO

2349

18-5-1976

Punjab Defence and Security

 

 

 

 

Relief Fund

1966-67

SO

2350

18-5-1976

Punjab Chief Minister’s Relief

 

 

 

 

Fund and District Relief Fund

1962-63

SO

2351

18-5-1976

Punjab Post-War Services

 

 

 

 

Reconstruction Fund

1962-63

SO

2352

18-5-1976

Punjab National Workers’

 

 

 

 

Relief Fund

1962-63

SO

2353

18-5-1976

Punjab Chief Minister’s Flood

 

 

 

 

Relief Fund

1976-77

SO

2354

18-5-1976

Servants of India Society,

 

 

 

 

Poona

1976-77

SO

2216

20-5-1976

Bharat Scouts & Guides

1976-77

SO

2215

1-6-1976

Prime Minister’s Drought

 

 

 

 

Relief Fund

1976-77

SO

3115

17-7-1976

Bharat Sevasram Sangha

1974-75

SO

3116

26-7-1976

National Institute of Public

1977-78

SO

3117

31-7-1976

Finance and Policy

 

 

 

 

Sri Ramanasramam Charities,

1976-77

SO

3269

4-9-1976

Tiruvannamalai

 

 

 

 

People’s Action for Develop-

 

 

 

 

ment (India)

1976-77

SO

3270

4-9-1976

Ramana Kendra, Delhi

1975-76

SO

4060

15-9-1976

Ratan Deep Trust, Delhi

1977-78

SO

4061

18-10-1976

Army Officers’ Contributory

 

 

 

 

Education Fund

1976-77

SO

4062

18-10-1976

Amalgamated Tamilnadu

 

 

 

 

Shares of Post-War Services

 

 

 

 

Reconstruction &

 

 

 

 

Rehabilitation of Ex-

 

 

 

 

Servicemen Fund

1970-71

SO

4063

25-10-1976

Armed Forces Benevolent

 

 

 

 

 

Fund

 

 

 

 

Special Fund for

 

 

 

 

Reconstruction &

 

 

 

 

Rehabilitation of Ex-

1976-77

SO

4064

25-10-1976

Servicemen

 

 

 

 

Armed Forces Reconstruction

 

 

 

 

Fund

 

 

 

 

India Gorkha Ex-Servicemen’s

 

 

 

 

Welfare Fund

 

 

 

 

 

Central Post-War

 

 

 

 

Resettlement Fund

 

 

 

 

Armed Forces Flag Duty Fund

 

 

 

 

War Bereaved & Disabled

1976-77

SO

4064

25-10-1976

Servicemen Special Relief

 

 

 

 

Fund

 

 

 

 

 

Indian Soldiers, Sailors &

 

 

 

 

Airmen’s Board Fund

 

 

 

 

Jawan’s Welfare Trust,

 

 

 

 

Maharashtra

1975-76

SO

4065

25-10-1976

The West Bengal Committee

 

 

 

 

to Eradicate Illiteracy

 

 

 

 

(Paschim Bangal Niraksharata

 

 

 

 

Durikaran Samiti)

1976-77

SO

573

8-12-1976

St. Dunstan’s (India) Fund,

 

 

 

 

New Delhi

1976-77

SO

579

10-12-1976

Sri Ramakrishna Ashram,

 

 

 

 

Nimpith

1974-75

SO

583

17-12-1976

Federation Hall Society,

 

 

 

 

Calcutta

1972-73

SO

584

17-12-1976

The Punjab Chief Minister’s

 

 

 

 

Housing Fund

1977-78

SO

585

17-12-1976

IAF Benevolent Association

 

 

 

 

 

Air Force Officers

 

 

 

 

Contributory Education Fund

 

 

 

 

Air Force Wives’ Welfare

1976-77

SO

587

17-12-1976

Association

 

 

 

 

IAF Central Welfare Fund

 

 

 

 

Air Force Group Insurance

 

 

 

 

Society

 

 

 

 

 

Action for Water Development

 

 

 

 

Mysore Society, Bangalore

1976-77

SO

1984

23-12-1976

Army Wives’ Welfare

 

 

 

 

Association, New Delhi

 

 

 

 

Disabled Army Personnel,

1973-74

SO

1985

6-1-1977

Widows & Orphans Fund,

 

 

 

 

New Delhi

 

 

 

 

Rail Surakshak Kalyan Nidhi,

 

 

 

 

New Delhi

1977-78

SO

1987

25-1-1977

Victoria Memorial Hall,

 

 

 

 

Calcutta

1974-75

SO

1988

10-2-1977

The Society of Immaculate

1975-76 to

 

 

 

Heart of Mary, Dindigul

1977-78

SO

1989

21-2-1977

Kasturba Gandhi National

 

 

 

 

Memorial Trust, Indore

1976-77

SO

1990

21-2-1977

Indian Ex-Services League,

1976-77 &

 

 

 

New Delhi

1977-78

SO

1991

23-2-1977

Greater Calcutta Leprosy

 

 

 

 

Treatment & Health

1976-77 to

SO

1992

28-3-1977

Education Scheme, Calcutta

1978-79

 

 

 

Sarada Ranganathan

 

 

 

 

Endowment for Library

 

 

 

 

Science, Bangalore

1976-77

SO

1993

28-3-1977

Govind Ballabh Pant

 

 

 

 

Memorial Society, New Delhi

1975-76

SO

1994

28-3-1977

Indian Council of Child

1976-77 &

 

 

 

Welfare, New Delhi

1977-78

SO

1995

28-3-1977

Haryana State Council of

 

 

 

 

Child Welfare, Chandigarh

1972-73

SO

1996

31-3-1977

Army Group Insurance

 

 

 

 

Scheme Fund

1976-77

SO

3447

14-4-1977

Birla Education Trust, Pilani

1973-74

SO

3448

26-5-1977

World Wildlife Fund India,

 

 

 

 

Bombay

1969-70

SO

3449

6-6-1977

Sri Samasthanam Choultry,

 

 

 

 

Pithapuram

1975-76

SO

3450

9-6-1977

Consumer Guidance Society

 

 

 

 

of India, Bombay

1970-71

SO

3451

13-6-1977

Kerala Toddy Workers’

 

 

 

 

Welfare Fund Board,

 

 

 

 

Trivandrum

1970-71

SO

3476

18-6-1977

M.P. State Prevention &

 

 

 

 

Control of Water Pollution

 

 

 

 

Board, Bhopal

1976-77

SO

3452

25-6-1977

Centre for the Study of

 

 

 

 

Developing Societies, Delhi

1976-77

SO

3453

25-6-1977

The Indian Section, The

 

 

 

 

Theosophical Society,

 

 

 

 

Varanasi

1976-77

SO

3454

30-6-1977

Theosophical Society, Adyar

1977-78

SO

3455

30-6-1977

Annie Besant Trust, Madras

1978-79

SO

3456

30-6-1977

National Sponsorship Council,

 

 

 

 

Bombay

1976-77

SO

3457

30-6-1977

India Sponsorship Committee,

 

 

 

 

Bombay

1976-77

SO

3458

16-7-1977

J.D.T. Islam Orphanage

 

 

 

 

Committee, Kozhikode

1977-78

SO

3459

16-7-1977

National Association for the

 

 

 

 

Blind

1976-77

SO

3460

21-7-1977

Pondicherry Police

 

 

 

 

Superannuation Scheme,

 

 

 

 

Pondicherry

1976-77

SO

3461

21-7-1977

Indian Dairy Corporation

1975-76

SO

3462

26-7-1977

Army Officers Benevolent

 

 

 

 

Fund

1976-77

SO

3464

3-8-1977

Army Central Welfare Fund

 

 

 

 

Samaritan Society, Palai

1972-73

SO

3465

4-8-1977

National Foundation for

 

 

 

 

Teachers Welfare, New Delhi

1976-77

SO

3466

11-8-1977

Asian Institute for Rural

 

 

 

 

Development, Bangalore

1977-78

SO

3467

29-8-1977

Seafarers Welfare Fund

 

 

 

 

Society, Bombay

1975-76

SO

3468

5-9-1977

SOS Children Village of India,

1976-77 to

 

 

 

New Delhi

1979-80

SO

3469

5-9-1977

Cancer Foundation, Delhi

1976-77 &

 

 

 

 

1977-78

SO

3470

12-9-1977

Asiatic Society of Bombay

1975-76

SO

3471

12-9-1977

Naval Officers’ Wives

 

 

 

 

Association, New Delhi

1975-76

SO

3472

20-9-1977

Maharashtra State Women’s

 

 

 

 

Council, Bombay

1977-78

SO

3473

20-9-1977

Seamen’s Welfare Association,

 

 

 

 

Calcutta

1971-72

SO

3474

20-9-1977

India International Centre,

1975-76 &

 

 

 

New Delhi

1976-77

SO

3475

20-9-1977

Navjivan Trust

1962-63

SO

3753

1-12-1977

Sri Ramkrishna Ashram,

 

 

 

 

Nimpith

1973-74

SO

3754

6-12-1977

Loreto House Educational

 

 

 

 

Society of Calcutta

1976-77

SO

691

31-12-1977

West Bengal Council for Child

 

 

 

 

Welfare

1973-74

SO

685

12-1-1978

Marwari Relief Society,

 

 

 

 

Calcutta

1971-72

SO

686

12-1-1978

Peoples Action for

 

 

 

 

Development (Maharashtra)

1975-76

SO

687

12-1-19781

Sri Aurobindo Samithi,

 

 

 

 

Calcutta

1975-76

SO

688

12-1-1978

Congregation of Christian

 

 

 

 

Brothers in India

1978-79

SO

692

18-1-1978

Bharat Seva Sansthan,

 

 

 

 

Lucknow

1965-66

SO

694

6-2-1978

Motilal Memorial Society,

 

 

 

 

Lucknow

1962-63

SO

695

6-2-1978

Gujarat Tribal Development

 

 

 

 

Corporation

1977-78

SO

696

6-2-1978

Defence Services Officers’

 

 

 

 

Welfare Fund

1962-63

SO

697

6-2-1978

United Methodist Committee

 

 

 

 

on Relief

1976-77

SO

698

6-2-1978

Indian Council for Child

 

 

 

 

Welfare (Tamilnadu)

1976-77

SO

699

6-2-1978

Sir Ratan Tata Trust

1976-77

SO

700

6-2-1978

Sir Dorabji Tata Trust

1976-77

SO

701

14-2-1978

Bharat Scouts & Guides

1972-73 to

 

 

 

 

1975-76

SO

702

17-2-1978

Loreto House Educational

1974-75 &

 

 

 

Society of Calcutta

1975-76

SO

703

23-2-1978

Gujarat Ayurved Vikas

 

 

 

 

Mandal, Ahmedabad

1967-68

SO

704

23-2-1978

National Foundation for

1974-75 &

 

 

 

Teachers’ Welfare

1975-76

SO

705

23-2-1978

Special Fund for

 

 

 

 

Reconstruction and

 

 

 

 

Rehabilitation of Ex-

 

 

 

 

Servicemen, Assam

1976-77

SO

706

23-2-1978

Indian Naval Benevolent

 

 

 

 

Association

1962-63

SO

1967

4-3-1978

Indian Naval Amenities Fund1

 

 

 

 

 

Naval Officers’ Contributory

 

 

 

 

Education Fund

 

 

 

 

Army Officers’ Benevolent

1973-74 to

 

 

 

Fund

1975-76

SO

1968

4-3-1978

Army Central Welfare Fund

 

 

 

 

IAF Benevolent Association

 

 

 

 

 

Air Force Officers’ Contri-

 

 

 

 

butory Education Fund

1973-74 to

 

 

 

Air Force Wives’ Welfare

1975-76

SO

1969

4-3-1978

Association

 

 

 

 

IAF Central Welfare Fund

1973-74 to

SO

1969

4-3-1978

Air Force Group Insurance

1975-76

 

 

 

Society

 

 

 

 

Nabik Griha Samity

1969-70

SO

1970

9-3-1978

Cancer Relief Society, Nagpur

 

1977-78

SO

1971

9-3-1978

Armed Forces Benevolent

 

 

 

 

Fund

 

 

 

 

Special Fund for

 

 

 

 

Reconstruction &

 

 

 

 

Rehabilitation of Ex-

 

 

 

 

Servicemen

 

 

 

 

Armed Forces

 

 

 

 

Reconstruction Fund

1974-75 &

 

 

 

India Gorkha Ex-

1975-76

SO

1972

15-3-1978

Servicemen’s

 

 

 

 

Welfare Fund

 

 

 

 

Central Post-War

 

 

 

 

Resettlement Fund

 

 

 

 

Armed Forces Flag Day Fund

 

 

 

 

War Bereaved & Disabled

 

 

 

 

Servicemen Special Relief

 

 

 

 

Fund

 

 

 

 

 

India Soldiers, Sailors &

 

 

 

 

Airmen’s Board Fund

 

 

 

 

Army Officers’ Contributory

1973-74 to

 

 

 

Education Fund

1975-76

SO

1994

18-3-1978

Army Officers’ Wives

 

 

 

 

Association, Headquarters

 

 

 

 

Maharashtra & Gujarat Area,

 

 

 

 

Bombay

1973-74

SO

1995

21-3-1978

Federation for the Welfare of

 

 

 

 

the Mentally Retarded (India)

1977-78

SO

1996

21-3-1978

Muslim Education Society,

 

 

 

 

Calicut

1971-72

SO

1973

29-3-1978

Mobile Creches for Working

 

 

 

 

Mothers’ Children

1975-76

SO

1974

29-3-1978

Bombay Society for the

 

 

 

 

Prevention of Cruelty to

 

 

 

 

Animals including Bai

 

 

 

 

Sakarbai Dinshaw Petit

 

 

 

 

Hospital for Animals

1977-78

SO

1975

31-3-1978

Nazareth Hospital Society,

 

 

 

 

Shillong

1977-78

SO

1976

31-3-1978

Andhra Pradesh Sangeeta

 

 

 

 

Nataka Akademi

1962-63

SO

1997

31-3-1978

Dakshinee

1976-77

SO

1977

11-4-1978

Akil Bharat Krishi Goseva

 

 

 

 

Sangh, Wardha

1962-63

SO

1978

20-4-1978

Arogyavaram Development

 

 

 

 

Society

1975-76

SO

1979

23-5-1978

Countess of Dufferin Fund,

 

 

 

 

Bengal Branch

1962-63

SO

1980

27-5-1978

Rashtrothana Parishat,

 

 

 

 

Bangalore

1973-74

SO

1982

3-6-1978

Sri Ram Vittal Trust, Udipi

1977-78

SO

1983

22-6-1978

Bengal Masonic Association

 

 

 

 

Inter Services Charitable

 

 

 

 

Trust, New Delhi

1977-78

SO

1984

22-6-1978

Bhagini Samaj, Bombay

1976-77

SO

1985

22-6-1978

Salesian Province of Calcutta

1976-77

SO

1986

22-6-1978

(Northern India)

 

 

 

 

Sir Ratan Tata Trust

1975-76

 

2413

17-7-1978

Sir Dorabji Tata Trust

 

 

 

 

Technological Consultants

 

 

 

 

Centre

1975-76

 

2423

19-7-1978

Karnataka Scheduled Castes

 

 

 

 

and Scheduled Tribes

 

 

 

 

Development Corpn.

1977-78

 

2424

19-7-1978

Calcutta Pinjrapole Society

1975-76

 

2434

24-7-1978

Krishnamurti Foundation,

 

 

 

 

India

1978-79

 

2484

24-8-1978

Indian Ex-Services League

1978-79

 

2505

16-9-1978

Friends of Moral Re-

 

 

 

 

armament (India)

1976-77

 

2506

16-9-1978

Chetna Society, Raj Bhawan,

 

 

 

 

Hyderabad

1978-79

 

2513

20-9-1978

Mahatma Gandhi Smarak

 

 

 

 

Nidhi, Pune

1977-78

 

2533

4-10-1978

Foundation Aga Khan

1979-80

 

2538

7-10-1978

Greater Calcutta Leprosy

 

 

 

 

Treatment and Health

 

 

 

 

Education Scheme

1979-80

 

2545

9-10-1978

Visvesvaraya Industrial

 

 

 

 

Museum Society Trust

1977-78

 

2547

18-10-1978

Delhi Council for Child

 

 

 

 

Welfare

1976-77

SO

222

30-10-1978

Lady Tata Memorial Trust

1976-77

SO

223

3-11-1978

Bombay Humanitarian

 

 

 

 

League

1974-75

SO

225

20-11-1978

National Centre for the

 

 

 

 

Performing Arts

1976-77

SO

466

27-11-1978

Indian Economic Association

1978-79

SO

2003

22-12-1978

Governor of West Bengal’s All

 

 

 

 

Purposes Benevolent Fund

1968-69

SO

2004

22-12-1978

Gujarat Rajya Rahat Samiti,

 

 

 

 

Ahmedabad

1972-73

SO

2005

30-12-1978

United Service Institution of

 

 

 

 

India, New Delhi

1973-74

SO

2006

4-1-1979

Yusuf Meherally Centre,

 

 

 

 

Bombay

1972-73

SO

2007

4-1-1979

Little Sisters of the Poor,

 

 

 

 

Calcutta

1978-79

SO

2008

10-1-1979

Jawahar Lal Nehru Memorial

 

 

 

 

Fund

1966-67

SO

2009

10-1-1979

Volkart Foundation, Bombay

1977-78

SO

2010

10-1-1979

Cathedral Relief Service,

 

 

 

 

Calcutta

1976-77

SO

2011

15-1-1979

J.R.D. Tata Trust, Bombay

1978-79

SO

2012

31-1-1979

 

Contd….