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Tax Exemption u/s 11: NGO Income Exemption

Income tax exemption under Section 11 for NGOs - accumulated income and application.

GetYourCA Team
2 April 2026·Updated 2 April 20261 min read12.5K views
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Section 11: Income Tax Exemption#

What is it?#

  • Exemption on NGO income
  • Applied to property held for charity
  • Includes donations, grants

Conditions#

  • For charitable purposes
  • No benefit to members
  • Accumulated income limit

Accumulated Income#

  • 15% of income can be accumulated
  • For specified purposes
  • Without time limit

Application#

  1. Obtain 12A first
  2. Calculate accumulated income
  3. Apply for exemption
  4. Maintain records

Points to Remember#

  • Must spend for objects
  • Cannot accumulate excessively
  • Annual reporting required

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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