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State of Tamilnadu - Section

Section 2B in Assessment, Levy and Recovery of Contribution Costs Rules

2B.

Every religious institution shall, from the income derived by it, pay to the Commissioner annually audit fees calculated on a percentage of its income at the rate specified in the table below:-[The Table [Table was substituted by G. O. Ms. No. 275, C. T. & R. E., dated the 16th July 1997.]]
Item No. Annual income of the religious institution Rate of Audit Fees (Per cent)
1 2 3
(i) If the annual income of the religiousinstitution does not exceed Rs. 5,000 Nil
(ii) If the annual income exceeds Rs. 5,000 but doesnot exceed Rs. 5,00,000. 1-1/02
(iii) If the annual income exceeds Rs. 5,00,000 4
(2)"Income" under these rules means gross income minus the amounts specified below:-
(a)Revenue paid to Government and cesses paid to Panchayat Unions or Panchayats or Municipalities or the Corporation of [Chennai] [Substituted for the word 'Madras' by the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).].
(b)Taxes and licence fees paid to Panchayat Unions, Panchayats, Municipalities or the Corporation of [Chennai] [Substituted for the word 'Madras' by the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).].
(c)Expenditure incurred for the following purposes connected with the direct cultivation of the land held by the religious institution not exceeding 25 per cent of the income derived from such property -
(i)Maintenance of, or repairs to, irrigation works;
(ii)Seeds or seedlings;
(iii)Manure;
(iv)Maintenance of cattle for cultivation;
(v)Maintenance and repair of agricultural implements; and
(vi)Wages for ploughing, sowing, watering, transplantation, harvesting, thrashing and other agricultural operations.
(d)Expenditure on sundry repairs to buildings not exceeding 10 per cent of the annual rent derived therefrom or the actual expenditure whichever is less.
(e)Share of receipts from "Archanai" fees or offerings, which the servants of the religious institutions are entitled to receive under any order of Court of Law or recognised by custom or usage.
(f)Cost of collection of rents not exceeding 10 per cent of the amount actually collected in cases where the religious institution employs special staff solely to attend to the work relating to collection of rents due to the religious institutions. In cases where such special staff is not appointed for such purpose, a proportionate amount may be allowed with reference to the nature of work turned out in collections; and (g) Sale-proceeds of immovable properties and rights if such proceeds are reinvested to earn income for the religious institution.
Explanation 1. - The following items of receipts shall not be deemed to be "income" for purposes of this rule:-
(i)Advances and deposits recovered and loans taken or recovered;
(ii)Deposits made as security by employees, lessees or contractors and other deposits, if any;
(iii)Withdrawals from Banks or of investments;
(iv)Recovery of costs awarded by Courts;
(v)Sale proceeds of jewels, vahanams, provision, livestock purchased for use of religious institutions and other articles belonging to the religious institution;
(vi)Donation in cash or kind made by the donors as contributions to capital;
(vii)[Omitted by G.O. Ms. No. 96, Revenue, dated 17th January 1973.]
(viii)Actual dry age of the receipts of agricultural produce or other articles from immovable properties or 2 per centum of such receipts received during the fasli year whichever is less.
Explanation 2. - In respect of any remunerative undertaking of a religious institution, only the net profit shall be taken as income. In respect of unremunerative undertakings of a religious institution, such as a school, college, hospital, poor home or orphanage and other similar institutions, the grants given by the Government or a local body or donations received from the public or fees collected from pupils, shall not be taken as income.Explanation 3. - Receipts in kind other than those referred to in item (vi) in Explanation 1 shall be deemed to accrue as income on the date of the sale thereof and shall be valued at the amount realised by such sale.Explanation 4. - Receipts in kind from immovable properties and consumed or utilised by the religious institution shall be valued at the market prices of the commodities.