Section 12 - Income of trusts or institutions from contributions - Income-tax Act, 1961

1 [Income of trusts or institutions from contributions. 12. 2 [ (1) ] Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly. ] 3 [ (2) The value of any services, being medical or educational services, made available by any charitable or religious trust running a hospital or medical institution or an educational institution, to any person referred to in clause ( a ) or clause ( b ) or clause ( c ) or clause ( cc ) or clause ( d ) of sub-section (3) of section 13, shall be deemed to be income of such trust or institution derived from property held under trust wholly for charitable or religious purposes during the previous year in which such services are so provided and shall be chargeable to income-tax notwithstanding the provisions of sub-section (1) of section 11. Explanation .- For the purposes of this sub-section, the expression value shall be the value of any benefit or facility granted or provided free of cost or at concessional rate to any person referred to in clause ( a ) or clause ( b ) or clause ( c ) or clause ( cc ) or clause ( d ) of sub-section (3) of section 13. ] 4 [ (3) Notwithstanding anything contained in section 11, any amount of donation received by the trust or institution in terms of clause ( d ) of sub-section (2) of section 80G 5 [ in respect of which accounts of income and expenditure have not been rendered to the authority prescribed under clause ( v ) of sub-section (5C) of that section, in the manner specified in that clause, or ] which has been utilised for purposes other than providing relief to the victims of earthquake in Gujarat or which remains unutilised in terms of sub-section (5C) of section 80G and not transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 6 [ 2004 ] shall be deemed to be the income of the previous year and shall accordingly be charged to tax. ] ------------------------------------- Notes :- 1. Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, section 12 was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. Original section 12 was substituted by the Finance Act, 1972, w.e.f. 1-4-1973. 2. Section 12 renumbered as section 12(1) by the Finance Act, 2000, w.e.f. 1-4-2001. 3. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 4. Inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001. 5. Inserted by the Finance Act, 2002, w.r.e.f. 3-2-2001. 6. Substituted for 2003 by the Finance Act, 2003, w.r.e.f. 3-2-2001. Earlier 2003 was substituted for 2002 by the Finance Act, 2002, w.r.e.f. 3-2-2001.