Mumbai, Feb 19: Patanjali Yogpeeth, a public charitable trust founded by Baba Ramdev has been successful in winning the tax exempt status before the Income-tax Appellate Tribunal (ITAT). In its report, the Delhi bench of ITAT has held that Yoga involves providing medical relief and the report further states that apart from medical relief it also provides education. ITAT entitled the trust to claim the I-T exempt status under sections 11 and 12 of the Income Tax Act since both ‘medical relief’ and ‘imparting education’ falls under charitable purpose.Also Read - Yoga to be Compulsory For School Students in Uttar Pradesh
Section 11 deals with the exemption of income from property held in trust/institution or other legal obligation for the religious/charitable purpose wholly or in part and section 12 deals with voluntary contributions which include income of trusts or institutions from contributions and any voluntary contributions received by a trust created wholly for charitable or religious purposes. Also Read - Patanjali's Ayurved, Medicine, Wellness and Lifestyle Branches To Take IPO Route In Next 5 Years
Previously, Yoga was not included in charitable purpose which meant that Patanjali Yogpeeth was liable to pay the income tax. However, an amendment made to the I-T Act, which came into effect on April 1, 2016, has specifically inserted ‘yoga’ within the definition of ‘charitable purpose’. The report of ITAT dated February 9 states “The finding of I-T authorities that propagation of yoga by Patanjali Yogpeeth does not qualify as medical relief or imparting of education is not justified.” Also Read - Baba Ramdev To Announce IPO Plans Of 5 Patanjali Group Companies Tomorrow
ITAT’s report further reads that it has held corpus donations worth Rs 43.98 crore received by Patanjali Yogpeeth for constructions of cottages under Vanprasth Ashram Scheme are capital receipts and they are not liable to I-T. Vanprasth Ashram Scheme provides accommodation to the people attending the yoga courses and the donation under this scheme includes land with the market price according to authorities is Rs 65 lakh. The ITAT order points out that, “Corpus donations are not taxable, even in circumstances where the trust is not eligible for I-T exemption”.
Baba Ramdev received a similar concession on Saturday when the government of Himachal Pradesh changed its three-year-old decision of cancelling the land lease granted by the previous Bharatiya Janata Party (BJP) government to Patanjali Yogpeeth and the cabinet meeting chaired by Chief Minister Virbhadra Singh approved the land lease granted to Patanjali Yogpeeth. “The Cabinet gave its approval for restoration of lease of government land to Patanjali Yogpeeth Trust, Haridwar (Uttarakhand), for establishing a branch of yoga and Ayurveda-related medical science research and health, tourism and production of herbal medicinal plants at Kalhog (Kandaghat), Solan,” a government spokesperson said.