The Central Board of Direct Taxes (CBDT) clarified the purposes of the Central Board of Secondary Education mentioned in the section 10(46) of Income Tax Act, 1961 which shall be applicable to the financial years 2023-24 and 2024-25.
CBSE is under the administrative control of the Ministry of Education, Government of India. It is responsible for conducting secondary and senior secondary level examinations for schools affiliated with it across the country.
Section 10(46) of the Income Tax Act, exempts certain entities’ income from income tax. It applies to organisations that the Central Government has designated as “specified entities” for the purposes of this section.
Universities, educational institutions, hospitals, institutions for scientific research, labour unions, and specific other non-profit organisations are among the entities that may be notified under section 10(46).
The objective of this section is to encourage the expansion and development of specific businesses that are engaged in activities that are deemed to be in the public interest. It also offers income tax relief to those entities.
As per the notification, the purposes of the CBSE is as followed:
(a)Examination Fees;
(b) Affiliation Fees;
(c) Sale of Text Books & Publications;
(d) Registration fees, Sports fees, Training fees and Other Academic receipts;
(e) Receipts from CBSE Projects/Programmes;
(f) Interest on income tax refunds; and
(g) Interest earned on (a) to (f) above.
The Notification shall be effective subject to Central Board of Secondary Education, Delhi:-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
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