Section 13(1)(a) reads as “any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public”.
The question is which part of this sentence does the word “Which” in it refer to?
If it refers to “income from the property held under a trust for private religious purposes” it simply means that private religious trusts are not allowed section 11 exemption.
If it refers to “any part,” it would imply that private religious trusts are allowed the Section 11 exemption, excluding only that part of their income that is not for the public’s benefit.
The first part Manoj. Private religious trusts are outside the purview of Section 11-12 of Income Tax Act. Also, it can be private or public not a mix. The mix can be charitable cum religious organization which also should be public by its constitution.
Thanks for your Reply, sir. Do you mean it refers to “income from the property held under a trust for private religious purposes”?
Section 13(1)(a) seems very ambiguous to me. If it refers to “income from the property held under a trust for private religious purposes,” then there was no need to use the words "any part of the” in beginning of the clause.
Yes, income of a public religious trust covered under section 11 if it engages in private religious purpose will not be considered for section 11 exemption benefit. That income will be outside of the exemption purview of section 11. Private religious trusts are anyway not entitled to section 11 benefit as you would know.
Section 13 covers situation and persons which deprive section 11 benefit.
