Educational and medical facilities to specified persons - Section 12(2) and 13(6) - Income Tax - Ready Reckoner - Income Tax

Educational and medical facilities to specified persons - Section 12(2) and 13(6) Sections 12(2) and 13(6) provide as follow As per section 13(1) , income of a charitable or religious trust will not be exempt if any part of such income or any property of the trust is used or applied directly or indirectly for the benefit of any person specified in section 13(3) . Section 13(6) provides that a charitable or religious trust running an educational institution or a medical institution or a hospital shall not be denied the benefit of exemption under section 11 or section 12 , in relation to any income by reason only that such trust has provided educational or medical facilities to specified persons. Section 12(2) provides that the value of any medical or educational services made available by any charitable or religious trust running a hospital or medical institution or any educational institution to any specified persons shall be deemed to be the income of such trust 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 at normal rates and exemption under section 11(1) 11(2) shall not be available for such income.