Income-tax Act, 1961Section 13
- Exemption denied for private religious purposes, benefits to founders/trustees/relatives
- Investments outside 11(5) modes
- Specified violations lead to cancellation
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 13
Charitable trustsSection 13 → Section 351
When trust exemption is lost: specified violations and benefit to interested persons
Section 13 of the old Income-tax Act, 1961 · new section 351 under the Income-tax Act, 2025
New reference Section 351 (specified violations), 337 (specified income)
Income-tax Act, 2025Section 351 (specified violations), 337 (specified income)
- Specified violations listed in section 351 (application outside objects, commercial activity, private religious purposes, community-specific application)
- Benefits to specified persons taxed as specified income (section 337)
- Permitted investment modes: section 350
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Restructured under the new non-profit Part.
Practice notes
- Accreted income tax (section 352) can apply on cancellation.
Frequently asked
What leads to cancellation of trust registration under the new Income Tax Act 2025?
Specified violations in section 351, such as applying income outside objects or for private religious purposes, or prohibited commercial activity.
What is section 13 called in the new Income-tax Act, 2025?
Section 13 of the Income-tax Act, 1961 corresponds to Section 351 (specified violations), 337 (specified income) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 13 under the new Income Tax Act?
Restructured under the new non-profit Part.
Is section 13 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 13 of the 1961 Act. Section 351 (specified violations), 337 (specified income) of the 2025 Act applies from tax year 2026-27.