What is the exemption for income of charitable trusts or institutions?

Section 11 of the Income Tax Act, 1961, provides exemption to income derived from property held under trust or other legal obligation wholly for charitable or religious purposes, subject to certain conditions. The Supreme Court, in the case of Aditanar Educational Institution v. Addl. CIT (1997), laid down principles for determining whether an institution qualifies as a charitable trust. Finance Act 2025 has not amended this provision.