Section 13 → Section 18
Section 11 not to apply in certain cases
Quick Answer
Section 13 of the Income Tax Act, 1961 (Section 11 not to apply in certain cases) corresponds to Section 18 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 13
Provision Summary
Exemption under Section 11 is lost if trust funds are invested in non-specified modes or used for the benefit of the founder/trustees.
Sec 18
Provision Summary
Retained. The anti-abuse mechanism for trusts. Violations lead to taxation at Maximum Marginal Rate (MMR).
Key Changes & Highlights
- Close tracking of related-party transactions (founders/trustees) using PAN data.
Related Sections
Frequently Asked Questions
What does Section 13 of the Income Tax Act 1961 deal with?
Section 13 (Section 11 not to apply in certain cases) Exemption under Section 11 is lost if trust funds are invested in non-specified modes or used for the benefit of the founder/trustees.
What is the new section number for Section 13 under the Direct Tax Code 2025?
Section 13 of the ITA 1961 maps to Section 18 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 13 under the new tax code?
Section 13 is marked as "Retained" with status "Active". Impact: Critical - Prevents misuse of charitable status for personal gain.
What are the key changes to Section 13 under DTC 2025?
Close tracking of related-party transactions (founders/trustees) using PAN data.
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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