Section 12 → Section 16
Income of trusts or institutions from contributions
Quick Answer
Section 12 of the Income Tax Act, 1961 (Income of trusts or institutions from contributions) corresponds to Section 16 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 12
Provision Summary
Voluntary contributions received by a trust are deemed to be income derived from property held under trust.
Sec 16
Provision Summary
Retained. Ensures all general donations are tracked and 85% application rule is applied to them.
Key Changes & Highlights
- Anonymous donations strictly tracked to prevent money laundering.
Related Sections
Frequently Asked Questions
What does Section 12 of the Income Tax Act 1961 deal with?
Section 12 (Income of trusts or institutions from contributions) Voluntary contributions received by a trust are deemed to be income derived from property held under trust.
What is the new section number for Section 12 under the Direct Tax Code 2025?
Section 12 of the ITA 1961 maps to Section 16 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 12 under the new tax code?
Section 12 is marked as "Retained" with status "Active". Impact: High - Governs how daily donations are treated for NGOs.
What are the key changes to Section 12 under DTC 2025?
Anonymous donations strictly tracked to prevent money laundering.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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