Possible grounds for appeal against penalty for under utilisation of funds by Charitable or religious institutions

If a charitable or religious institution is penalised by the Income Tax Department for under-utilisation of funds (i.e. not applying 85% of its income towards its charitable/religious purposes as required under Section 11(1) of the Income Tax Act), it may appeal the penalty …

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Income Tax Rules Mandating 85% Utilisation of Funds for Charitable or Religious Institutions

In India, charitable institutions enjoy tax exemption under Section 11 and 12 of the Income Tax Act, 1961, provided they comply with certain conditions, including the utilisation of income for charitable or religious purposes. If they under-utilise funds, i.e., do not spend the required percentage …

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