INDIA INCOME TAX ACT 1961
Section 10 Incomes not included in total income.
(23C) any income received by any person on behalf of-
(i) the Prime Minister’s National Relief Fund; or
(ii) the Prime Minister’s Fund (Promotion of Folk Art); or
(iii) the Prime Minister’s Aid to Students Fund;or
(iiia) the National Foundation for Communal Harmony; or
( iiiab) any university or other educational institution existing solely for
educational purposes and not for purposes of profit , which is wholly or
substantially financed by the Government; or
(iiiac) any hospital or other institution for the reception and treatment of persons
suffering from illness or mental defectiveness or for the reception and treatment
of persons during convalescence or of persons requiring medical attention or
rehabilitation, existing solely for philanthropic purposes and not for purposes of
profit and which is wholly or sustantially financed by the Government; or
(iiiad) any university or other educational institution exisiting solely for
educational purposes and not for purposes of profit if the aggregate annual
receipts of such university or educational institution do not exceed the amount of
annual receipts as may be prescribed; or
(iiiae) any hospital or other institution for the reception and treatment of persons
suffering from illness or mental defectiveness or for the reception and treatment
of persons during convalescence or of persons requiring medical attention or
rehabilitation, existing solely for philanthropic purposes and not for purposes of
profit, if the aggregate annual recepits of such hospital or institution do not exceed
the amount of annual recepits as may be prescribed; or
(iv) any other fund or institution established for charitable purposes which may be
notified by the Central Government in the Official Gazette, having regard to the
objects of the fund or institution and its importance throughout India or
throughout any State or States; or
(v) any trust (including any other legal obligation) or institution wholly for public
religious purposes or wholly for public religious and charitable purposes, which
may be notified by the Central Government in the Official Gazette, having regard
to the manner in which the affairs of the trust or institution are administered and

supervised for ensuring that the income accruing thereto is properly applied for
the objects thereof:
(vi) any university or other educational institution exisiting solely for educational
purposes and not for purposes of profit,other than those mentioned in sub-
clause(iiiab) of sub-clause(iiiad) and which may be approved by the prescribed
authority; or
(via) any hospital or other institution for the reception and treatment of persons
suffering from illness or mental defectiveness or for the reception and treatment
of persons during convalescence or of persons requiring medical attention or
rehabilitation, existing solely for philanthropic purposes and not for purposes of
profit, other than those mentioned in sub-clause (iiiac) or sub-clause (iiiae) and
which may be approved by the prescribed authority:
Provided that the fund or trust or institution or any university or other educational
institution or any hospital or other medical institution referred to in sub- clause
(iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) shall make an
application in the prescribed form and manner to the prescribed authority for the
purpose of grant of the exemption, or continuance thereof, under sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via):
Provided further that the Central Government, before notifying the fund or trust or
institution, or the prescribed authority, before approving any university or other
educational institution or any hospital or other medical institution, under sub-
clause (iv) or sub-clause (v) or sub-clause (vi) or, sub-clause (via), may call for
such documents (including audited annual accounts) or information from the fund
or trust or institution or any university or other educational institution or any
hospital or other medical institution, as the case may be, as it thinks necessary in
order to satisfy itself about the genuineness of the activities of the fund or trust or
institution or any university or other educational institution or any hospital or
other medical institution, as the case may be, and the Central Government or the
prescribed authority, as the case may be, may also make such inquiries as it deems
necessary in this behalf:
Provided also that the fund or trust or institution or any university or other
educational institution or any hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via)-
(a) applies its income, or accumulates it for application, wholly and
exclusively to the objects for which it is established and in a case where
more than twenty-five per cent of the its income is accumulated on or after
the 1st day of April, 2001, the period of the accumulation of the amount
exceeding twenty-five per cent of its income shall in no case exceed five
years; and

(a) applies its income, or accumulates it for application, wholly and
exclusively to the objects for which it is established and in a case where
more than fifteen per cent of the its income is accumulated on or after the
1st day of April, 2002, the period of the accumulation of the amount
exceeding fifteen per cent of its income shall in no case exceed five years;
and
(b) does not invest or deposit its funds, other than-
(i) any assets held by the fund, trust or institution or any university
or other educational institution or any hospital or other medical
institution where such assets form part of the corpus of the fund,
trust or institution or any university or other educational institution
or any hospital or other medical institution as on the 1st day of
June, 1973;
(ia) any asset, being equity shares of a public company, held by
any university or other educational institution or any hospital or
other medical institution where such assets form part of the corpus
of any university or other educational institution or any hospital or
other medical institution as on the 1st day of June, 1998;
(ii) any assets (being debentures issued by, or on behalf of, any
company or corporation), acquired by the fund, trust or institution
or any university or other educational institution or any hospital or
other medical institution before the 1st day of March, 1983;
(iii) any accretion to the shares, forming part of the corpus
mentioned in sub-clause (i) and sub-clause(ia), by way of bonus
shares allotted to the fund, trust or institution or any university or
other educational institution or any hospital or other medical
institution;
(iv) voluntary contributions received and maintained in the form of
jewellery, furniture or any other article as the Board may, by
notification in the Official Gazette, specify,
for any period during the previous year otherwise than in any one or more
of the forms or modes specified in sub-section (5) of section 11
;
Provided also that the exemption under sub-clause (iv) or sub-clause (v) shall not
be denied in relation to any funds invested or deposited before the 1st day of
April, 1989, otherwise than in any one or more of the forms or modes specified in
sub-section (5) of section 11
if such funds do not continue to remain so invested
or deposited after the 30th day of March, 1993:

Provided also that the exemption under sub-clause (vi) or sub-clause (via)shall not
be denied in relation to any funds invested or deposited before the 1st day of June,
1998, otherwise than in any one or more of the forms or modes specified in sub-
section (5) of section 11
if such funds do not continue to remain so invested or
deposited after the 30th day of March, 2001:
Provided also that the exemption under sub-clause (iv) or sub-clause (v) or sub-
clause (vi) or sub-clause (via) shall not be denied in relation to voluntary
contribution, other than voluntary contribution in cash or voluntary contribution
of the nature referred to in clause (b) of the third proviso to this sub-clause,
subject to the condition that such voluntary contribution is not held by the trust or
institution or any university or other educational institution or any hospital or
other medical institution, otherwise than in any one or more of the forms or
modes specified in sub-section (5) of section 11
, after the expiry of one year from
the end of the previous year in which such asset is acquired or the 31st day of
March, 1992, whichever is later:
Provided also that nothing contained in sub-clause (iv) or sub-clause (v) or
sub-clause (vi) or sub-clause (via) shall apply in relation to any income of
the fund or trust or institution or any university or other educational
institution or any hospital or other medical institution, being profits and
gains of business, unless the business is incidental to the attainment of its
objectives and separate books of account are maintained by it in respect of
such business:
Provided also that any notification issued by the Central Government
under sub-clause (iv) or sub-clause (v) shall, at any one time, have effect
for such assessment year or years, not exceeding three assessment years
(including an assessment year or years commencing before the date on
which such notification is issued) as may be specified in the notification;
Provided also that any amount of donation received by the fund or institution in
terms of clause (d) of section (2) of section 80G
in respect of which accounts of
income and expenditure have not been rendered to the authority prescribed under
clause (v) of sub-section (5C) of that section, in the manner specified in that
clause, or which has been utilised for purposes other than providing relief to the
victims to the earthquake in Gujarat or which remain unutilised in terms of sub-
section (5C) of section 80G
and not transferred to the Prime Ministers National
relief Fund on or before the 31st day of march, 2003 shall be deemed to be the
income of the previous year and shall accordingly be charged to tax;
Provided also that where the fund or trust or institution or any university or other
educational institution or any hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) does not
apply its income during the year of receipt and accumulates it, any payment or
credit out of such accumulation to any trust or institution registered under section

12AA or to any fund or trust or institution or any university or other educational
institution or any hospital or other medical institution referred to in sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via) shall not be treated as
application of income to the objects for which such fund or trust or institution or
university or educational institution or hospital or other medical institution, as the
case may be, is established:
Provided also that where the fund or institution referred to in sub-clause (iv) or
trust or institution referred to in sub-clause (v) is notified by the Central
Government or any university or other educational institution referred to in sub-
clause (vi) or any hospital or other medical institution referred to in sub-clause
(via), is approved by the prescribed authority and subsequently that Government
or the prescribed authority is satisfied that
(i) such fund or institution or trust or any university or other educational
institution or any hospital or other medical institution has not,
(A) applied its income in accordance with the provisions contained
in clause (a) of the third proviso; or
(B) invested or deposited its funds in accordance with the
provisions contained in clause (b) of the third proviso; or
(ii) the activities of such fund or trust or institution or any university or
other educational institution or any hospital or other medical institution,
(A) are not genuine; or
(B) are not being carried out in accordance with all or any of the
conditions subject to which it was notified or approved,
it may, at any time after giving a reasonable opportunity of showing cause against
the proposed action to the concerned fund or institution or trust or any university
or other educational institution or any hospital or other medical institution, rescind
the notification or, by order, withdraw the approval, as the case may be, and
forward a copy of the order rescinding the notification or withdrawing the
approval to such fund or institution or trust or any university or other educational
institution or any hospital or other medical institution and to the Assessing
Officer;