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It is assumed that all charities within such section will qualify for this exemption. However, the Hon. Minister made specific mention of charities dedicated to managing elder's homes, children's homes, and homes for the disabled and it is unclear whether all charities will qualify for this exemption. Charities envisaged under section 186 are already exempted from income tax on their business profits. Therefore those that qualify for both exemptions may not be required to file an income tax return although no mention was made of this.
It is also not mentioned whether Non Governmental Organizations (NGO's) that are identified in section 96A will qualify for this exemption and we assume that they will do so only if such NGO's are within the definition of a charitable institution as defined in section 186...
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