Income Tax Act, 2025
Section 7: Subs. by Act 11 of 1983, s. 7, for “provisions of clause (c)” (w.e.f. 11983).
7. Subs. by Act 11 of 1983, s. 7, for “provisions of clause (c)” (w.e.f. 11983).
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(b) if any land, building or other property of the trust or institution is, or continues to be, made
available for the use of any person referred to in sub-section (3), for any period during the previous
year without charging adequate rent or other compensation;
(c) if any amount is paid by way of salary, allowance or otherwise during the previous year to any
person referred to in sub-section (3) out of the resources of the trust or institution for services
rendered by that person to such trust or institution and the amount so paid is in excess of what may be
reasonably paid for such services;
(d) if the services of the trust or institution are made available to any person referred to in
sub-section (3) during the previous year without adequate remuneration or other compensation;
(e) if any share, security or other property is purchased by or on behalf of the trust or institution
from any person referred to in sub-section (3) during the previous year for consideration which is
more than adequate;
(f) if any share, security or other property is sold by or on behalf of the trust or institution to any
person referred to in sub-section (3) during the previous year for consideration which is less than
adequate;
1[(g) if any income or property of the trust or institution is diverted during the previous year in
favour of any person referred to in sub-section (3):
Provided that this clause shall not apply where the income, or the value of the property or, as the
case may be, the aggregate of the income and the value of the property, so diverted does not exceed
one thousand rupees;]
(h) if any funds of the trust or institution are, or continue to remain, invested for any period
during the previous year (not being a period before the 1st day of January, 1971), in any concern in
which any person referred to in sub-section (3) has a substantial interest.
(3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following,
namely:—
(a) the author of the trust or the founder of the institution;
2[(b) any person who has made a substantial contribution to the trust or institution, that is to say,
any person whose total contribution up to the end of the relevant previous year exceeds 3[fifty
thousand] rupees];
(c) where such author, founder or person is a Hindu undivided family, a member of the family;
4[(cc) any trustee of the trust or manager (by whatever name called) of the institution;]
if any land, building or other property of the trust or institution is, or continues to be, made
available for the use of any person referred to in sub-section
if any amount is paid by way of salary, allowance or otherwise during the previous year to any
person referred to in sub-section
out of the resources of the trust or institution for services
rendered by that person to such trust or institution and the amount so paid is in excess of what may be
reasonably paid for such services;
if the services of the trust or institution are made available to any person referred to in
sub-section
during the previous year without adequate remuneration or other compensation;
if any share, security or other property is purchased by or on behalf of the trust or institution
from any person referred to in sub-section
during the previous year for consideration which is
more than adequate;
if any share, security or other property is sold by or on behalf of the trust or institution to any
person referred to in sub-section
during the previous year for consideration which is less than
adequate;
1[
if any income or property of the trust or institution is diverted during the previous year in
favour of any person referred to in sub-section
if any funds of the trust or institution are, or continue to remain, invested for any period
during the previous year (not being a period before the 1st day of January, 1971), in any concern in
which any person referred to in sub-section
has a substantial interest.
The persons referred to in clause
of sub-section
and sub-section
are the following,
namely:—
the author of the trust or the founder of the institution;
2[
any person who has made a substantial contribution to the trust or institution, that is to say,
any person whose total contribution up to the end of the relevant previous year exceeds 3[fifty
thousand] rupees];
where such author, founder or person is a Hindu undivided family, a member of the family;
4[
any trustee of the trust or manager (by whatever name called) of the institution;]