Any voluntary contribution received by a trust wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall be deemed to be the income derived from property held under trust wholly for charitable or religious purposes and will qualify for exemption to the extent such income is utilised for the purposes of the trust or set apart for future application as referred to in section 11 and also subject to the fulfilment of conditions laid down in section 12A.
The value of any medical or educational services made available by any charitable or religious trust running a hospital, medical institution or an educational institution as referred to in section 13(3), shall be deemed to be income chargeable to income-tax if such services are rendered to the following persons:
(i) the author of the trust or the founder of the institution;
(ii) any person who has made a total contribution exceeding Rs. 50,000;
(iii) where such author, founder or person is a HUE, a member of the HUF;
(iv) any trustee of the trust or manager of the institution;
(v) any relative of such author, founder, person, member, trustee or manager as aforesaid;
(vi) any concerned in which any of the person to in clauses (i) to (vi) has a substantial interest.
where the aggregate of funds of the trust invested in a concern in which any person has a substantial interest does not exceed 5% of the capital of that concern.
Note : The expression value shall be the value of any benefit or facility granted or provided free of cost or at concessional rate to any person mentioned above.