Tax exempt: In India, a tax-exempt organization is refer to as a “charitable organization” or “charitable trust” and is exempt from paying income taxation under Section 11 of the Income Tax Act, 1961.
This exemption applies to organizations that are establish for charitable, religious, or educational purposes, as well as those established for the promotion of science, literature, or the arts, and those established for the prevention of cruelty to animals.
To be eligible for taxes-exempt status in India, the organization must be registered with the Registrar of Societies or the Registrar of Trusts, and its activities must be limited to the charitable or educational purposes for which it was established.
The organization must also maintain proper books of accounts and file an annual income tax return.
In addition to income taxation exemption, charitable organizations in India may also be exemption from other taxes, such as customs duty and service tax, if they meet certain criteria.
However, it is important to note that tax-exemption status does not necessarily mean that the organization is exemption from all taxes. Some taxes, such as property taxation and stamp duty, may still be applicable depending on the specific circumstances of the organization.
To visit https://www.incometax.gov.in
