Charitable organizations play vital role in removing disparity and inequalities among people at large. Such organizations carry out various activities aimed at removing poverty as well as towards well being of general public in a variety of ways. More and more of educational and medical institutions are being created in order to promote educational and medical facilities in India. Looking at the generous role of the charitable organizations as also of such educational and medical institutions, the Government contributes by providing various tax incentives to them. As far as Income Tax Act is concerned, several exemptions and deductions are provided thereunder to charitable trusts and institutions. Sections 11 to 13 are specifically meant for charitable trusts and institutions. For availing of exemption under section 11, however, the trust or institution has to fulfil certain conditions regarding application and accumulation of income. Educational and medical institutions being of tremendous importance in public interest, stringent conditions regarding accumulation and application of income as inherent in section 11 do not, to a large extent, appear to be fair and justified. The Act therefore provides blanket exemption to such institutions via insertion of certain sub-clauses in the section 10(23C). Accordingly, sub-clauses (iiiab), (iiiad) and (vi) of clause (23C) of section 10 provide for exemption to educational institutions while the sub-clauses (iiiac), (iiiae) and (via) provide for exemption to hospitals and other philanthropic institutions
In order to attain the objectives behind a charitable trust or a non-profit educational and medical institution, it becomes necessary to develop and maintain a proper accounting system. Keeping in view the importance thereof a Part titled “Accounting by Trusts & Institutions” is singularly devoted thereto.
The subject matter of this book is accordingly presented in 78 Chapters divided broadly under the above three Parts. Looking at the practice needs, special emphasis is laid on the Conveyancing Solutions as and where needed. Certain Sample Draft Deeds for constituting Charitable/ Educational Trusts and Charitable Dispensaries/Hospitals under commonly occurring practical situations, have also been provided, as guidance material, in order to make this product all inclusive and exhaustive enough for meeting the entirety of practice specific objectives behind it.
This book has gained immensely from our past experiences. Apt and suitable classification of Chapters and their appropriate groupings under various sections of the book would help a lot in taking away the rigour out of the complex subject matter dealt with herein. The result, the readers should naturally find, is a convincingly plain, simple, useful and practical guide book on the subject of Charitable Trusts and Institutions and of Non Profit Educational and Medical Institutions.
The feature of providing necessary updates pertaining to the subject matter of this treatise, through URL mentioned on page (iii) of the Book, is an icing on the cake. This service is to be provided till December 2017 for the readers of the book and is approachable via a reader specific code provided on page (iii) itself.
Assessment year 2018-19 Supplement based as 2017 Budget is placed in the opening pages of this book to make it self sufficient in current terms.
We will consider ourselves lucky if this effort of ours takes away some of the pains and troubles of our readers. We have tried to make it an error-free and quality publication. We shall however be grateful for any valuable and constructive suggestions from our readers.