Income tax guide

Section 10(23BBA) Income Tax Exemption for Statutory Religious and Charitable Authorities

Section 10(23BBA) of the Income-tax Act, 1961 addresses income of certain authorities or bodies constituted under law to administer public religious or charitable trusts, endowments and societies. It distinguishes the statutory administering authority from the individual institutions it administers.

Key distinction: The exemption concerns qualifying income of an authority or body established, constituted or appointed under a Central, State or Provincial Act for the administration of specified public religious or charitable institutions. It does not, by itself, exempt the income of the underlying trusts, endowments or societies.

Meaning and scope of Section 10(23BBA)

Under the Income-tax Act, 1961, Section 10(23BBA) excludes from total income income of a body or authority established, constituted or appointed by or under a Central, State or Provincial Act for the administration of public religious or charitable trusts or endowments (including maths, temples, gurdwaras, wakfs, churches and synagogues), or societies for religious or charitable purposes registered under the Societies Registration Act, 1860 or a corresponding law in force in any part of India.

Eligible entity	A statutory authority or body established, constituted or appointed by or under a qualifying Central, State or Provincial Act.
Statutory purpose	Administration of public religious or charitable trusts, endowments, or qualifying religious or charitable societies.
Nature of income	Income of the eligible statutory administering authority or body.
Extent of exemption	Qualifying income of the authority or body is excluded from total income under the provision.
Important exclusion	The exemption does not apply to income of the trusts, endowments or societies being administered.

Conditions for the exemption

Legal constitution: The claimant must be an authority or body established, constituted or appointed by or under a Central, State or Provincial Act. Merely registering a private trust or association does not meet this requirement.
Qualifying administration: Its statutory role must relate to administration of public religious or charitable trusts, endowments, or the qualifying societies described in the provision.
Correct recipient of income: The income claimed as exempt must be income of that authority or body, rather than income belonging to an administered trust, endowment or society.
Relevant year: Eligibility should be assessed under the law applicable to the particular tax year, including any later amendments and transition provisions.

Definitions and examples

Statutory authority or body

An entity created or appointed through legislation to carry out administrative or supervisory functions. Its constituting law, functions and legal status are central to determining eligibility.

Public religious or charitable trust and endowment

A public religious or charitable trust holds or manages property for a religious or charitable purpose benefiting the public or a qualifying section of it. An endowment is property dedicated for such a purpose. The statute expressly contemplates institutions such as temples, maths, gurdwaras, wakfs, churches and synagogues.

Religious or charitable society

A society formed for religious or charitable purposes and registered under the Societies Registration Act, 1860 or an applicable corresponding law.

Exemption of authority versus underlying institution

Suppose a State Act constitutes an authority to administer several public religious endowments. Income legally belonging to that statutory authority may qualify under Section 10(23BBA), subject to the provision. The separate income of each temple, trust, endowment or society does not become exempt merely because that authority administers it. Such institutions must evaluate their own applicable income-tax provisions and compliance requirements.

Records and verification

The authority should retain its constituting statute or appointment order, records describing its functions, financial statements identifying its own income separately from funds held for administered institutions, and any relevant tax filings. Classification depends on the actual legal arrangement, not solely the entity's name.

Applicable law and official references

This article explains the provision in the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026; for tax years governed by the newer Act, consult its corresponding provisions and transitional rules rather than assuming the former section number remains operative. Check the Income Tax Department's official legal resources, the official income-tax portal and India Code legislation database for the law applicable to the relevant period.