IT benefit for IRCS and St. John's Ambulance (India) - Union Health Minister · TIOL-DDT 1702

IT benefit for IRCS and St. John's Ambulance (India) - Union Health Minister

By Vijay Kumar

Mr. Ghulam Nabi Azad, Union Health Minister and Chairman of Indian Red Cross Society and St John Ambulance (India), yesterday presided over the General Body meeting of IRCS and St. John's Ambulance (India) on behalf of the President of India.

The Minister informed the General Body members that due to persistent efforts, they were able to obtain tax exemption for the income of the society on a perpetual basis under the Income Tax Act. He referred to the provisions of section 10(46) of the Income Tax Act, 1961 (inserted by Finance Act, 2011 w.e.f 01.06.2011) which he said would cover organizations like IRCS under the said provisions and inter alia would enable IRCS to spend funds outside India to help vulnerable people. It was further informed that necessary notification to this effect would be issued by Finance Ministry shortly.

A quick recap of section 10(46) of Income Tax Act, 1961 as inserted by section 4(c) of Finance Act, 2011:

“(46) any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called) which -

(a) has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public;
(b) is not engaged in any commercial activity; and
(c) is notified by the Central Government in the Official Gazette for the purposes of this clause.
Explanation. - For the purposes of this clause, “specified income” means the income, of the nature and to the extent arising to a body or authority or Board or Trust or Commission (by whatever name called) referred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf;”

Unfortunately, in the above provision there is no enabling provision to allow the organizations referred to therein, to spend funds outside India to help vulnerable people!