The Income Tax Department of India has raised concerns regarding the tax-exempt status of various charitable trusts, trade associations, and educational bodies by issuing thousands of notices questioning certain income streams as 'commercial'. These notices were sent following applications for registration or renewal under the Income-tax Act, 1961, which allows entities to claim exemptions under Section 12A and enables donors to receive tax deductions under Section 80G. The department flagged specific receipts as potentially violating Section 2(15), which defines 'charitable purpose' and restricts entities from engaging in commercial activities beyond certain limits. Organizations receiving these notices argue that activities such as seminars and training programs are essential to their charitable objectives and should not be classified as commercial. The Supreme Court of India has previously ruled that charitable institutions can only engage in trade if it is incidental to their main objectives. Recent rulings from the Income Tax Appellate Tribunal (ITAT) have provided some relief to organizations, affirming their tax-exempt status based on historical precedents. Legal experts stress that the distinction between genuine charitable activities and those driven by profit motive is crucial for fair treatment by tax authorities.