Baba Ramdev’s Patanjali Yogpeeth  (charitable trust for public) has succeeded in its application before the Income-tax Appellate Tribunal (ITAT), which has accepted its tax-exempt status

Patanjali Will Be Operating Tax Free

The ITAT (Delhi bench) believe that Yoga involves providing medical support & camps also implement education and that both`medical relief ‘ & `imparting education’ fall within the purpose of charity, entitling the trust to claim I-T exempt status under sections 11 & 12 of the Income Tax Act.

“The judgment of I-T authorities that propagation of yoga by Ramdev Baba’s Patanjali Yogpeeth does not fit as medical relief or imparting of education is not proved,” stated the ITAT in its order dated February 9.

Patanjali Will Be Operating Tax Free

Also, the litigation settled by the ITAT, relates to the 2008-09, the ITAT has also referred to the following amendment in the I-T Act, which came into outcome on April 1, 2016. This clause specifically inserted `yoga’ within the meaning of `charitable purpose’. If this exempt status not been supported by the ITAT, Patanjali Yogpeeth would have been likely to pay income tax. The entire income of this trust is not brought out in the ITAT order.


The ITAT also believe that corpus donations gross to Rs 43.98 crore received by Baba’s Patanjali Yogpeeth, predominantly for the building of cottages under its Vanprasth Ashram Scheme (which gives the provision of accommodation to those attending residential yoga courses), were capital receipts not liable to I-T.

Such donations involve land donated, whose business value was pegged by I-T authorities at Rs 65 lakh. In its order, the ITAT found out that “Corpus donations are not taxable, even in situations where the trust is not eligible for I-T exemption.”

Various enhancement to the trust’s income made by the I-T authorities, including a Rs 96 lakh addition made for co-operation made by the trust to Vedic Broadcasting in which Acharya Balkrishnan, a trustee and close aide of Ramdev baba holds substantial interest were deleted by the ITAT, on the ground that the I-T authorities had not understood the facts

Patanjali Will Be Operating Tax Free




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