Section 2(15) of the Income-tax Act, 1961 defines the term 'charitable purpose'. This definition is crucial as it determines the eligibility for tax exemptions under sections 11 and 12 of the Act. The term encompasses relief of the poor, education, medical relief, and the advancement of any other object of general public utility. However, the proviso to this section specifies that if an entity is involved in trade, commerce, or business activities, it must ensure that the aggregate receipts from such activities do not exceed 20% of the total receipts of the entity in that financial year. This section is significant as it sets the framework for determining whether an organization qualifies as a charitable institution, thereby impacting its tax liabilities. The burden of proof lies with the organization to demonstrate that its activities align with the definition of 'charitable purpose'. In practice, this section is pivotal in the assessment of non-profit organizations and their eligibility for tax benefits.