Tax Glossary Definition
A charitable purpose refers to activities carried out for the benefit of the public without the motive of profit. As defined under Section 2(15) of the Income Tax Act, charitable purposes include relief of the poor, education, medical relief, preservation of the environment, and advancement of other objects of general public utility. Income from such activities may qualify for tax exemption if the organization is registered under the Act.
Example: A school run by a registered charitable trust for the purpose of providing education is considered to be engaged in a charitable purpose and is eligible for tax exemption.
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