« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Advance warning, Tax mop-up dips 22%... Advance tax: Top Ten payments’ growth slows... » No tax on membership fee of industry bodies December, 26th 2008 Industry chambers apprehensive of losing tax benefits can breathe easy. The Central Board of Direct Taxes has issued a circular clarifying activities that are termed as charitable and be eligible for income tax benefits.According to the circular, industry associations generating income from membership fees will not come under the tax net. Under the principle of mutuality, if the trading takes place between people who are associated with each other and contribute to a common fund for the financing of some venture, any surplus returned to members is not taxable, the circular said. To ensure that only genuine charitable bodies are able to get tax benefits, the government had modified the definition of a charitable body by adding a new provision. The income tax department recognised a "charitable purpose" as an organisation that covered activities related to the relief of poor, education, medical relief and the 'advancement of any other object of general public utility'. Since the last definition made the definition very open ended, the government amended it by adding: If the charitable purpose involves any other activity in nature of trade, commerce or business or any activity of rendering any service in relation to any trade, commerce or business for a cess, or fee, or any other consideration, it will not be considered a charitable body. The amendment had led to a huge hue and cry with many organisations, such as key industry chambers representing the government. To clear the air on the issue, the CBDT has now issued a detailed circular defining what is a charitable body.Industry bodies claim exemption from income tax under Section 11 on grounds that their objects are for a charitable purpose as they are covered under 'any other object of general public utility'. If industry or trade associations claim to be charitable institutions as well as mutual organisations and their activities are restricted to contributions from and participation of only their members, they would not fall under the purview of the new provision on charitable organisations owing to the principle of mutuality. However, if such organisations have dealings with non-members, they will incur tax.