Baba Ramdev’s Patanjali Yogpeeth gets tax-exempt status

The ITAT in its order also referred to the 2006 amendment in the I-T Act which specifically inserted `yoga' within the definition of `charitable purpose'.

By: Express Web Desk | New Delhi | Updated: February 19, 2017 6:17 pm
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The Income-tax Appellate Tribunal (ITAT) has given tax exempt status to Baba Ramdev’s Patanjali Yogpeeth (a public charitable trust). The Delhi bench of the tribunal ruled that Patanjali Yogpeeth involves providing medical relief and its camps impart education, and since both `medical relief ‘ and `imparting education’ fall within the meaning of charitable purpose it can be granted the I-T exempt status under sections 11 and 12 of the Income Tax Act. “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,” stated the ITAT in its order.

The ITAT in its order also referred to the 2006 amendment in the I-T Act which specifically inserted `yoga’ within the definition of `charitable purpose’. The tribunal also ruled that corpus donations aggregating to Rs 43.98 crore received by Patanjali Yogpeeth, predominantly for construction of cottages under its Vanprasth Ashram Scheme (which provides accommodation to those attending residential yoga courses), were capital receipts not liable to I-T. Such donations included land donated, whose market value was pegged by I-T authorities at Rs 65 lakh. The ITAT, in its order, pointed out that “Corpus donations are not taxable, even in circumstances where the trust is not eligible for I-T exemption”.

What else is making news:

Patanjali Yogpeeth is one of the largest yoga institutes in India. Named after the Rishi Patanjali, it is Baba Ramdev’s flagship project. Its purpose is to practise and research and develop yoga and ayurveda, as well as manufacture ayurvedic medicines. Acharya Balkrishna is the General Secretary of Patanjali Yogpeeth. He had entered India’s richest 100 club with $2.5 billion net-worth owing to his 97% stake in Patanjali Ayurved Ltd.

“With revenue of $780 million, Patanjali sells everything from herbal toothpastes and cosmetics to noodles and jams. Though Ramdev holds no shares in Patanjali, he is the company’s de facto brand ambassador, while Balkrishna runs operations. Among much else, Balkrishna also oversees 5,000 Patanjali clinics, the Patanjali University and a yoga and Ayurveda research institute. He says that Patanjali’s profits are donated to various trusts and charities,” Forbes had mentioned.

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  1. S
    salim chagla
    Jul 10, 2017 at 4:49 pm
    simple do b.j.p. f.a.r.t. thus ram baba no tax....hmmm....as all do carbon in air ps: pres.d.j.trump ~ do not
    Reply
    1. V
      Vishnu
      Jul 10, 2017 at 3:12 pm
      Poor Jounalism which believes on lies and subterfuge. What has happened to Ram Nath Goenka's legacy? Is this the same Indian Express, which was leading the struggle against the dictator, Indira Gandhi! Will you have the courtesy and decenc to publish a rejoinder that you ae sorry to have hired a fool for a Journalist and an for an Editor who let this out in the current form for sick Guys like Arora and Amitava and Aseem to pass comments way above their bird brain! Wake up Indian Express or be washed away!
      Reply
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        Arora
        Feb 20, 2017 at 4:43 am
        BJP ko Chandra dene ki profit with interest what a shame
        Reply
        1. J
          Jitu
          Feb 20, 2017 at 11:18 am
          Good work is always late appreciated. Thanks baba ramdev for giving good quality natural product
          Reply
          1. M
            MyTake
            Feb 19, 2017 at 6:36 pm
            Good that more resources will go into public welfare.
            Reply
            1. A
              Amitava Ghosh
              Feb 19, 2017 at 2:58 pm
              BJP chamcha gets tax facility inspite of the fact that he is not worth it.Shame sambitji.
              Reply
              1. V
                Vishnu
                Jul 10, 2017 at 3:06 pm
                Dear Amitava, please read the order properly. Exemption is only for items related to Patanjali Yogapeeth and that too based on law propogated during Congress Time. Capital Items are naturally Tax Exempt which was included rather foolishly when they filed this case (during Congress Rule and remember the support he provided to Kujliwal Co. struggle before AAP was formed) as an Act of vengeance. Products related to their FMCG items are not Tax exempted as you, a typical Commie whose only belief is a smoke screen to hide the truth and never have any compunctions in lying which is your bread and butter for living. See your status across the globe! Truth always prevails and Commies like you and your ilk shall vanish since your id(iot)eology is based on false hood and lies and subterfuge.
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                Anitha
                Feb 19, 2017 at 1:17 pm
                Far from taxing such a patriotic and sacred Insution like Patanjali, Govt of India should encourage Yoga, Ayurveda under organizations like Patanjali in each and every state of India lt;br/gt;Babaji can provide 5 times more employment for the same turnover and the money will remain within India.
                Reply
                1. A
                  Aseem
                  Feb 19, 2017 at 8:02 pm
                  time for ITC, HUL and others to start a yoga centre and claim tax exemption for all their products. What a sham!!!
                  Reply
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