(5)This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfills the following conditions, namely:-(i)where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 [* * *] [ Certain words omitted by Act 21 of 1998, Section 29 (w.e.f. 1.4.1999).] [* * *] [ Certain words omitted by Act 20 of 2002, Section 30 (w.e.f. 1.4.2003).] [or clause (23-AA) or clause (23-C)] [ Substituted by Act 11 of 1987, Section 35, for " or clause (23-C)" (w.e.f. 1.4.1988).] of section 10:[Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if-(a)the institution or fund maintains separate books of account in respect of such business;(b)the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and(c)the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;(ii)the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;(iii)the institution or fund is not expressed to be for the benefit of any particular religious community or caste;(iv)the institution or fund maintains regular accounts of its receipts and expenditure; ][*] [ The word " and" omitted by Act 32 of 1994, Section 24 (w.e.f. 1.4.1994).](v)[ the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, ] [Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1984).][* * *] [ Certain words omitted by Act 20 of 2002, Section 30 (w.e.f. 1.4.2003).][or is an institution financed wholly or in part by the Government or a local authority; ] [Inserted by Act 11 of 1983, Section 39 (w.e.f. 1.4.1984).][*] [ The word " and" omitted by Act 33 of 2009, Section 33 (w.e.f. 1.4.2009).](vi)[ in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules ] [Inserted by Act 49 of 1991, Section 26 (w.e.f. 1.10.1991).][made in this behalf; and] [ Substituted by Act 33 of 2009, Section 33 (w.e.f. 1.4.2009).][* * *] [ Proviso omitted by Act 33 of 2009, Section 33(c) (w.e.f. 1.10.2009).](vii)[ where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,- [ Inserted by Act 33 of 2009, Section 33(d) (w.e.f. 1.4.2009).](a)established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and(b)approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009. ][(5-A) Where a deduction under this section is claimed and allowed for any assessment year in respect of any sum specified in sub-section (2), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other assessment year.] [ Inserted by Act 44 of 1980, Section 15 (w.r.e.f. 1.4.1962).][(5-B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent. of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply.] [ Inserted by Act 27 of 1999, Section 43 (w.e.f. 1.4.2000).][(5-C)] [ Inserted by Act 4 of 2001, Section 6 (w.r.e.f. 3.2.2001).] [This section] [ Substituted by Act 20 of 2002, Section 30, for " This sub-Section" (w.r.e.f. 3.2.2001).][applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfills the following conditions, namely:-(i)it is approved in terms of clause (vi) of sub-section (5);(ii)it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat;(iii)the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat ][on or before the 31st day of March, [2004] [ Substituted by Act 20 of 2002, Section 30, for " on or before the 31st day of March, 2002" (w.r.e.f. 3.2.2001).];(iv)[ the amount of donation remaining unutilised on the 31st day of March, ] [Substituted by Act 20 of 2002, Section 30, for Clause (iv) (w.r.e.f. 3.2.2001).][2004] [Substituted by Act 32 of 2003, Section 36, for " 2003" (w.r.e.f. 3.2.2001).][is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, ] [Substituted by Act 20 of 2002, Section 30, for Clause (iv) (w.r.e.f. 3.2.2001).][2004] [Substituted by Act 32 of 2003, Section 36, for " 2003" (w.r.e.f. 3.2.2001).];(v)[ it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, ] [ Inserted by Act 4 of 2001, Section 6 (w.r.e.f. 3.2.2001).][on or before the 30th day of June, [2004] [Substituted by Act 20 of 2002, Section 30, for " on or before the 30th day of June, 2002" (w.r.e.f. 3.2.2001).].]Explanation 1. - An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5).[Explanation 2. - For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely:-] [ Substituted by Act 19 of 1970, Section 13, for Explanation 2 (w.e.f. 1.4.1971).](i)[ that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, section 12 or section 12-A; [ Substituted by Act 4 of 1988, Section 25, for Clauses (i) and (ii) (w.e.f. 1.4.1989).](ii)that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 or section 12 is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent. of the capital of that concern.]Explanation 3. -In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.[Explanation 4. -For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.] [ Substituted by Act 20 of 2002, Section 30, for Explanation 4 (w.e.f. 1.4.2003).][Explanation 5. - For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.] [ Inserted by Act 66 of 1976, Section 17 (w.e.f. 1.4.1976).][* * *] [ Sub-Section (6) omitted by Act 19 of 1968, Section 30 and Schedule III (w.e.f. 1.4.1969).]
