Both section are covered under Income which do not form part of Total Income
Section 11 - Tax Exemption
After consider provisions of section 60 to 63, the income of a religious/charitable trust/institutions, to the extent specified in the act, is exempt from tax after fulfill certain conditions. This income does not even form part of the total income.
Section 11 deals with the exemption of income from property held in trust/institution or other legal obligation for religious/charitable purpose wholly or in part.
Income of Trust exempted under Section 11 Section Nature of income Extent to which exemption allowed 11(1)(a) Income derived from property held under trust wholly for charitable or religious purposes To the extent income is applied to such charitable or religious purposes in India. Whereas such income is accumulated or set apart for such application, to the extent of 15% of the income from such property. 11(1)(c) Income derived from property held under trust for a charitable purpose, which tends to promote international welfare in which India is interested To the extent income is applied to such charitable or religious purposes outside India. Exemption is available only if the Board has directed such exemption. 11(1)(d) Income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution. 100% exemption.
Section 12 - Voluntary Contributions
--1 Income of trusts or institutions from contributions
--2. Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly.
