‘Education’ Is An Object, Charitable Per Se Under The I.T Act

It is often a topic of dispute amongst the various judicial authorities that whether the high end educational institutions, especially schools, providing modern and equipped educational aids, maintaining the highest standards of hygiene, offering air-conditioned classroom, buses etc. are involved in activities which are charitable or commercial in nature.

Both starting from the word 'C', but still carry a huge difference while considering from the point of view of taxation. The income of a charitable trust or a society under whose aegis these schools run is exempt from Income tax according to the provisions of Section 11, 12 and 13of the Income Tax Act. However, to avail the said exemption, the activities of such trust/society should fall within the definition of 'Charitable purpose' as defined U/s 2[15] of the Income Tax Act.