Section 65(5) in The Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987
(5)For purposes of this section, annual income shall mean(a)in relation to Dharmadayam, the total of the amount charged or collected as Dharmadayam during the year of account ;(b)in relation to any other income, the proceeds in each year after deducting the amounts specified below :-(i)the revenue paid to Government including cesses paid to local authorities;(A)maintenance of or repairs to irrigation works which shall not include the capital cost of irrigation works ;(B)seeds or seedling ;(C)manure ;(D)purchase and maintenance of cattle for cultivation ;(E)purchase and maintenance of agricultural implements, and(F)wages for ploughing, watering, sowing, transplantation, harvesting, threshing and other agricultural operations : Provided that the total deduction in respect of expenditure under this item shall not exceed ten per tum of the income from such lands ;(iv)expenditure on sundry repairs to rented buildings, not exceeding ten per tum of the annual rent derived therefrom or actual expenditure whichever is less(v)the actual cost of collection of rents not exceeding ten per tum of the amount collected in cases where special staff is employed solely to attend to the work relating to collection of rents due to charitable or religious institution or endowment ; and(vi)sale proceeds of immovable properties and rights relating to or arising out of immovable properties, if such proceeds are reinvested to earn income for the charitable or religious institution or endowment.(ii)the taxes and lice fees paid to local authorities ;(iii)expenditure incurred for the following purposes connected with the direct cultivation of lands held by charitable or religious institution or endowment, namely :-Explanation 1. - The following items of receipts shall not be deemed to be income for purposes of this section namely :-(a)advances and deposits recovered and loans taken or recovered;(b)deposits made as security by employees, lessees, or contractors and other deposits, if any ;(c)withdrawals from the banks or of investments ;(d)amount recovered towards costs awarded by courts ;(e)sale proceeds of religious books and publications where such sales are undertaken as an unremunerative enterprise with a view to propagate religion ;(f)sale proceeds of jewels, vahanams, provisions or other articles or livestock purchased by the charitable or religious institution or endowment ;(g)donations in cash or kind by the donors as contributions to capital ;(h)abhayams or voluntary contributions received in cash or kind for a specified service in the charitable or religious institution or endowment and expended on such service ;(i)actual driage of the agricultural produce or the articles from immovable properties or one per tum of the value of such receipts during the financial year, whichever is less ; and(j)audit recoveries.Explanation 2. - In respect of any remunerative undertaking of a charitable or religious institution or endowment only the net profit shall be taken as income. In respect of non-remunerative undertaking of a charitable or religious institution or endowment such as a school, college, hospital, poor-home, orphanage or any other similar institution, the grants given by Government or a local authority or donations received from public, or fees collected from pupils of educational institutions shall not be taken as income.Explanation 3. - Receipts in kind other than, those referred to in items (g) and (h) of 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 shall be valued, in cases of produce consumed or utilised by the charitable or religious institution or endowment, at their market value on the dates of their receipt.
