Amendment status not verified — confirm the current text below against the official source.
Omitted by the Act No.33 of 2007, S.21 (w.e.f. 14-12-2007) (ii) the taxes and licence fees paid to local authorities; (iii) expenditure incurred for the following purposes connected with the direct cultivation of lands held by charitable or religious institution or endowment, namely:- (A) maintenance of or repairs to irrigation works which shall not include the capital cost of irrigation works; (B) seeds or seedling; (C) manure; (D) purchase and maintenance of cattle for cultivation; (E) purchase and maintenance of agricultural implements, and (F) wages for ploughing, watering, sowing, transplantation, harvesting, threshing and other agricultural operations: Provided that the total deduction in respect of expenditure under this item shall not exceed ten per centum of the income from such lands; (iv) expenditure on sundry repairs to rented buildings, not exceeding ten per centum of the annual rent derived therefrom or actual expenditure whichever is less; (v) the actual cost of collection of rents not exceeding ten percentum of the amount collected in cases where special staff is employed solely to attend to the work relating to collection of rents due to charitable or religious institution or endowment; and (vi) sale proceeds of immovable properties and rights relating to, or arising out of immovable properties, if such proceeds are reinvested to earn income for the charitable or religious institution or endowment. Explanation (1):- The following items of receipts shall not be deemed to be income for purposes of this section, namely:- (a) advances and deposits recovered and loans taken or recovered; (b) deposits made as security by employees, lessees, or contractors and other deposits, if any; (c) withdrawals from the banks or of investments; (d) amount recovered towards costs awarded by courts; (e) sale proceeds of religious books and publications where such sales are undertaken as an unremunerative enterprise with a view to propagate religion; (f) sale proceeds of jewels, vahanams, provisions or other articles or livestock purchased by the charitable or religious institution or endowment; (g) donations in cash or kind by the donors as contributions to capital; (h) ubhayams or voluntary contributions received in cash or kind for a specified service in the charitable or religious institution or endowment and expended on such service; (i) actual driage of the agricultural produce or the articles from immovable properties or one per centum of the value of such receipts during the financial year, whichever is less; and (j) audit recoveries. Explanation (2):- In respect of any remunerative undertaking of a charitable or religious institution or endowment only the net profit shall be taken as income. In respect of non-remunerative undertaking of a charitable or religious institution or endowment such as a school, college, hospital, poor home, orphanage or any other similar institution, the grants given by Government or a local authority or donations received from public, or fees collected from pupils of educational institutions shall not be taken as income. Explanation (3):- Receipts in kind other than, those referred to in items (g) and (h) of Explanation (1) shall be deemed to accrue as income on the date of the sale thereof and shall be valued at the amount realised by such sale. Explanation (4):- Receipts in kind from immovable properties shall be valued, in cases of produce consumed or utilised by the charitable or religious institution or endowment, at their market value on the dates of their receipt. 1 [65-A. Archakas, other office holders and servants’ salary and other emoluments fund - A fund shall be created and vested with the Commissioner for the purpose of payment of salaries and other emoluments to all such Archakas, office holders and servants of charitable and Hindu Religious Institutional an Endowments published under section 6 of the Act who have been appointed by competent authorities as per the sanctioned cadre strength following the prescribed procedure. Every such institution shall pay contribution annually to such fund at the rate prescribed form their annual income as defined under sub-section (5) of section 65. The procedure for collection of contribution to and disbursement from the fund shall be such as may be prescribed.]