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. A
    Feb 20, 2017 at 4:43 am
    BJP ko Chandra dene ki profit with interest what a shame
    1. J
      Feb 20, 2017 at 11:18 am
      Good work is always late appreciated. Thanks baba ramdev for giving good quality natural product
      1. M
        Feb 19, 2017 at 6:36 pm
        Good that more resources will go into public welfare.
        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.
          1. A
            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.
            1. A
              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!!!
              1. C
                Feb 19, 2017 at 1:10 pm
                Welcome decision. Swamiji's done yeoman service in spreading yoga, health and employmentlt;br/gt;-lt;br/gt;Babaji and Acharya Balakrishnaji do not accept any ry from this multi billion charity businesslt;br/gt;-lt;br/gt;Govt should not just give tax exemp and provide more lands in each state to spread Yoga and Ayurved
                1. C
                  CS Sardesai
                  Feb 21, 2017 at 1:41 pm
                  Patanjali Yogpeeth which is a Yoga Training insute is not the compeor for Ambani and;br/gt;lt;br/gt;Do not confuse the matter with the Patanjali products. If it is a "Charitable Trust" then they call get this status. You can check similar charitable insutes of all kinds. The news headlines are meant to cause a stir and as you can see they managed to confuse;br/gt;lt;br/gt;Also if you note this happened as per a law that came in 2006. There was no Modi then. Yes, I know you were blaming Modi for this too.
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