# Exemptions — Charitable & Religious Activities
## 1. Services by a Section 12AA/AB Trust by way of 'Charitable Activities'
Services by a trust registered under section 12AA / 12AB of the Income-tax Act, 1961 are exempt only if they fall under one of these four heads of 'charitable activities':
| Head | Coverage |
|---|---|
| Public Health | Care & counselling of: terminally ill, disabled, HIV/AIDS-affected, narco/alcohol addicts. Also public awareness on HIV prevention, preventive health, family planning. |
| Advancement of | Religion, Spirituality, Yoga |
| Education / Skill development of | Abandoned/orphaned/homeless children; persons physically or mentally abused; prisoners; persons over 65 years residing in rural area |
| Preservation of | Watershed, Forests & wildlife, Environment |
> Any service by such a trust outside these four heads (e.g., advertisement services, hostel for general students) is NOT exempt.
## 2. Religious Ceremonies & Renting of Religious Precincts
### (a) Religious ceremonies
Services by way of conducting religious ceremonies (pooja, ceremonies relating to birth, death, marriage, etc.) → Exempt.
### (b) Renting of precincts of a religious place
Exempt only if provided by a trust registered u/s 12AA/AB or u/s 10(23C) of the Income-tax Act, and the rent is below the thresholds:
| Type of space | Threshold for exemption |
|---|---|
| Rooms | < ₹1,000 per day |
| Premises / hall / pandal / open area | < ₹10,000 per day |
| Shop / space for business | < ₹10,000 per month |
Note: 'Precincts' covers property within the outer boundary wall (e.g., mandir, masjid, gurudwara, church compound).
Note: If let to multiple parties, the combined rent per day/month is tested against the threshold.
## 3. Religious Pilgrimage Services
Exempt only if provided by:
- Kumaon Mandal Vikas Nigam Ltd. — for the Kailash-Mansarovar Yatra, or
- Haj Committee of India / State Haj Committee — for Mecca pilgrimage.
Pilgrimage services by any other organisation → Taxable.
## 4. Training/Coaching in Art, Culture or Sports
Exempt if provided by:
- An individual, or
- A trust registered u/s 12AA/AB.
'Art' includes: dance, singing, painting, theatre, literature, etc.
## 5. Composite Camps with Yoga / Religious Activity
Residential programs / camps where exempt activity is bundled with food, stay, drinks (taxable items) → the entire supply is exempt if it is a composite supply and the exempt activity is the principal supply (e.g., a yoga camp with meals & stay).
## 6. Common Pitfalls Made Explicit
- A service provided TO a charitable trust is NOT automatically exempt.
- 12AA/AB trusts get exemption only for activities falling within the defined 'charitable activities'.