Question

Why is patanjali exempted from paying taxes?

Answer 1

Hey dear...

Here is your answer....

The sales income are rightly taxed, as the Company is already being subject to Income Tax.

The contention of the department was that they were not imparting any education or medical relief for which they were originally registered for, and hence the exemption under Yoga as to be denied.

The Delhi branch of the tribunal held that yoga provides medical relief and and camps also providing education can be exempt under sections 11 and 12 of the Income Tax Act.

Though the profit after tax is given to the Trust, its given it as corpus. Corpus is not taxable defacto under the IT Act. This was also upheld by ITAT.

The media so as to make headlines had made the news as such the income from Patajali products are being exempt from tax instead of the Yoga Institution.

Hope it helps you!!