Property held under trust includes Business Undertaking - Section 11(4) - Income Tax - Ready Reckoner - Income Tax

Property held under trust includes Business Undertaking - Section 11(4)/(4A) For the purpose of section 11 , Income from business shall be treated as income derived from property held under trust and shall be eligible for exemption under section 11(1) 11(2) . Charitable trust engaged in business activity Section 11(4A) even if its object involve the under the respective regime, would be available in respect of income, being profit and gains from business activity if Such business is incidental to the attainment of the objects of the trust institution; and separate books of account are maintained by such trust/ institution in respect of such business If in the assessment, the Assessing officer finds any concealed income in respect of the above business then, exemption under section 11(1) 11(2) shall not be available in respect of such concealed income. Cases where trust property consists of a business undertaking Section 11(4) clarifies that for the purposes of section 11, property held under trust may consist of business undertaking so held. if that be so, the trustees may claim that the income of such undertaking enjoys exemption u/s 11. Section 11(4) provides that- The Assessing officer shall have the power to determine the income of the undertaking in accordance with the provisions of the act relating to assessment, and Where the income determined by the assessing officer is in excess of that shown in the books of the undertaking, such excess shall be deemed to be applied to purposes other than charitable or religious purposes.​​​​​​​ Books of account and other documents to be kept and maintained [ Refer this chapter ]