Is exemption of Income to NGO, Section 25 Company, Charitable Trust and Society can forfeiture? Provision in Section 13 for forfeiture of Exemption

As per Section 13 of the Income Tax Act, there are circumstances in which benefit of provisions of section 11 and section 12 shall not be available in respect of application of income or part thereof. These circumstances are listed as under:-

(i) the income is for private religious purpose and not for the benefit of public.

(ii) The income is for the benefit of any particular religious community or caste. However, income for benefit of persons belonging to Scheduled castes, Scheduled tribes, women and children will not be denied exemption u/s 11 & 12.
 

 

 

(iii) The income is for the benefit of any interested person mentioned in section 13(3) or Explanation I to Section 13(6) respectively.

(iv) The income is invested or continues to be invested in forms other than the forms specified in section 11(5).

 In the above said circumstances, the Assessing officer can forfeiture the Income Tax exemption given to NGO, Charitable Trust, Section 25 Company, Charitable Society and other Charitable Institutions.

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