Section 13 of the Income Tax Act

Payments for computer software are treated as royalty income under Section 9(1)(vi) of the Income-tax Act, particularly concerning the expanded definition provided by Explanation 2 and Explanation 4.

Once an institution receives registration under Section 12AA, the Assessing Officer must compute its income as per Section 11, focusing only on the application of income and not re-examining the charitable nature of its activities. The Supreme Court also clarified the meaning and scope of 'general public utility' under Section 2(15).

For a charitable trust, a violation of Section 13(1)(d) does not lead to the denial of exemption under Section 11 on its total income. Instead, only income derived from investments or deposits made in violation of Section 11(5) or income diverted under Section 13(1)(c) or 13(1)(d) is taxable.

A charitable trust can claim depreciation on assets when computing the income applied for charitable or religious purposes under Section 11 of the Income Tax Act, for assessment years prior to the introduction of Section 11(6). The restriction on claiming depreciation, as introduced by Section 11(6), is prospective from AY 2015-16.

An organization qualifies as charitable under Section 2(15) only if its income and property are solely applied for its charitable objects and, upon dissolution, its residual assets are restricted for utilization exclusively for charitable purposes, not for distribution to members or as general state revenue.

The terms 'income' or 'profits and gains' are inclusive of losses, signifying that losses are 'minus income' to be factored into the computation of taxable income. Therefore, set-off and carry forward provisions for losses apply exclusively to taxable income or gains and cannot be pressed into service against non-taxable gains, such as those exempt under a DTAA or other specific provisions.

Payments for services are liable for deduction of tax at source, and withholding tax liability can be calculated by apportioning the remittance if only a portion of the services are considered royalty.

Payments for software licenses that do not involve a transfer of copyright or proprietary interest, but merely authorize end-user access and use, do not constitute 'royalty' income. Additionally, IT support services are not taxable as Fees for Technical Services (FTS) or royalty.

Payment for subscription-based access to an offshore database containing financial or economic information is not considered 'royalty' under Section 9(1)(vi), as merely making such information available does not amount to 'imparting information concerning industrial, commercial or scientific experience'.

The right to life under Article 21 of the Indian Constitution includes the fundamental right to shelter, encompassing adequate living space, safe structures, clean surroundings, and essential amenities.