Lok Sabha Question No. 4981 (UNSTARRED), answered on 2026-03-23
Subject: Tax Exemption to Religious Institutions
Ministry: FINANCE
Asked by: Shri Anil Yeshwant Desai

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 4981

## TO BE ANSWERED ON MONDAY, THE 23 rd  MARCH, 2026/CHAITRA 02, 1948 (SAKA) 'TAX EXEMPTION TO RELIGIOUS INSTITUTIONS'

4981. Shri Anil Yeshwant Desai:

Will the Minister of FINANCE be pleased to state:

- (a)  whether it is a fact that religious places of worship and institutions are exempted from paying any tax to the Government, if so, the details thereof;
- (b)  whether religious places or institutions belonging to Hindu or Muslim, Sikh etc. have paid any tax during the last ten years, if so, the details thereof; and
- (c)  whether some religious institutions are not required to pay any tax, if so, the details thereof along with the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a): As per provisions of the Income Tax Act, 1961, income derived from property held under trust wholly for charitable or religious purposes may be exempt from income tax, subject to fulfilment of the conditions prescribed under the Act. Such trusts or institutions are required to obtain registration under the relevant provisions of the Income tax Act, 1961, such as section 12A/12AB, and must apply their income for charitable or religious purposes in accordance with the provisions contained in section 11 and 12 of the Act. However, where the prescribed conditions  are  not  fulfilled  or  where  the  provisions  of  section  13  become  applicable,  the exemption  may  be  denied  and  the  income  becomes  liable  to  tax  in  accordance  with  the provisions of the Act.

Vide Notification No.12/2017-CT (R) dated 28.06.2017, GST exemptions have been provided in relation to all services provided by religious entities registered under section 12AA or 12AB of the Income Tax Act, 1961. Further, same notification also exempts conduct of any religious ceremony along with service of renting of precincts of a religious place meant for the general public  subject  to  specific  monetary  thresholds  prescribed  therein.  Further  as  per  Sl.102  of Notification No.10/2025-CT (R) dated 17.09.2025, Prasadam supplied by religious places is also exempted from GST whereas items like puja samagri, milk etc are also exempted from GST whether or not supplied by religious places.

(b): The income tax liability of the entities filing income tax return in Form ITR-7 (which interalia includes activities of providing relief to poor, education, religious, medical, yoga etc.) in the last ten years is tabulated below:

(Rs. in crores)

| Assessment Year           |   Total tax liability |
|---------------------------|-----------------------|
| 2016-17                   |                   544 |
| 2017-18                   |                   713 |
| 2018-19                   |                   689 |
| 2019-20                   |                   394 |
| 2020-21                   |                   366 |
| 2021-22                   |                   356 |
| 2022-23                   |                   419 |
| 2023-24                   |                   816 |
| 2024-25                   |                   781 |
| 2025-26 (upto 31-01-2026) |                  1041 |

(c): Please see reply to (a) above.

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