Trust - Definition / Legal Terminology - Income Tax

Trust Explanation . -For the purposes of section 2(24)(iia) of the Income tax Act 1961, trust includes- any other legal obligation ; Explanation 1(b) . - As per section 115UB of the Income tax Act 1961, For the purposes of Chapter XII-FB (special provisions relating to tax on income of investment funds and income received from such funds) ,- trust means- a trust established under the I ndian Trusts Act, 1882 or under any other law for the time being in force; COMMISSIONER OF INCOME TAX VERSUS M/S. DAWOODI BOHARA JAMAT- 2014 (3) TMI 652 - SUPREME COURT In certain cases, the activities of the trust may contain elements of both: religious and charitable and thus, both the purposes may be over lapping. More so when the religious activity carried on by a particular section of people would be a charitable activity for or towards other members of the community and also public at large. For example, the practice of optional charity in the form of Khairat or Sadaquah under Mohammadan Law would be covered under both charitable as well as religious purpose. Further, while providing food and fodder to animals especially cow is religious activity for Hindus, it would be charitable in respect to non-Hindus as well. Similarly, service of water to the thirsty would find mention as religious activity in sacred texts and at the same time would qualify as a charitable activity.