Section 11 → Section 15
Income from property held for charitable or religious purposes
Quick Answer
Section 11 of the Income Tax Act, 1961 (Income from property held for charitable or religious purposes) corresponds to Section 15 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 11
In the 1961 statute, Section 11 deals with income from property held for charitable or religious purposes. Exempts income derived from property held under trust wholly for charitable/religious purposes, provided 85% is applied towards those purposes.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 11 is retained and renumbered as Section 15 of the Income-tax Act, 2025. Retained. Rules regarding corpus donations and accumulation of income for 5 years tightened to prevent hoarding of funds.
The transition impact on Section 11 is assessed as Very High. The foundational section for NGO/Trust taxation.
Sec 11
Provision Summary
Exempts income derived from property held under trust wholly for charitable/religious purposes, provided 85% is applied towards those purposes.
Sec 15
Provision Summary
Retained. Rules regarding corpus donations and accumulation of income for 5 years tightened to prevent hoarding of funds.
Key Changes & Highlights
- Corpus donations must be invested in specified Section 11(5) modes instantly to claim exemption.
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Frequently Asked Questions
Which subject does Section 11 of the 1961 Act cover?
Section 11 of the Income Tax Act, 1961 covers income from property held for charitable or religious purposes. Exempts income derived from property held under trust wholly for charitable/religious purposes, provided 85% is applied towards those purposes.
What is the new section number for Section 11 under the Income-tax Act, 2025?
Section 11 of the Income Tax Act, 1961 maps to Section 15 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Rules regarding corpus donations and accumulation of income for 5 years tightened to prevent hoarding of funds.
How does the Income-tax Act, 2025 affect Section 11 in practice?
The transition impact for Section 11 is rated Very High. The foundational section for NGO/Trust taxation.
What is new about Section 11 under the Income-tax Act, 2025?
Corpus donations must be invested in specified Section 11(5) modes instantly to claim exemption. These points are specific to Section 11 (Income from property held for charitable or religious purposes).
Disclaimer: This mapping of Section 11 (Income from property held for charitable or religious purposes) to Section 15 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 11 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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