FM likely to drop the proposal to tax religious trusts

The finance ministry is likely to drop the proposal to tax religious trusts. The proposal formed part of the direct taxes code and had raised eyebrows both within and outside the finance ministry.  “The issue has been raised in the finance ministry’s internal discussions. We are discussing whether the exemption was removed with intent or by mistake,” said a finance ministry official.

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Allowability of exemption to partly charitable and partly religious trust

SUMMARY OF CASE LAW

A religious purpose can be a charitable purpose and vice versa in India; therefore, exemption cannot be denied to a trust which is partly charitable and partly religious.

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