CBDT exempts Chandigarh DLSA from Income Tax u/s 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT), vide notification no. S.O. 80(E) dated 5th January 2024 has notified the income tax exemption of District Legal Service Authority (DLSA)  Union Territory Chandigarh under Section 10(46) of the Income Tax ACt, 1961.

The following income are exempted:

• Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority and State Authority constituted under Legal Services Authorities Act, 1987;
• Grants or donation received from the Central Government or the State Government of Punjab/Haryana for the purpose of the Legal Services Authorities Act, 1987;
• Amount received under the order of the court;
• Fees received as recruitment application fee; and
• Interest earned on bank deposits.

This notification shall be effective subject to the conditions that District Legal Service Authority Union Territory Chandigarh:

• shall not engage in any commercial activity;
• activities and the nature of the specified income shall remain unchanged throughout the financial years; and
• 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.

In line with the foundational commitment articulated in the Preamble to ensure justice—social, economic, and political—for all citizens, Article 39A of the Constitution of India mandates the provision of free legal aid to the impoverished and vulnerable segments of society.

This initiative aims to foster justice on the principle of equal opportunity. Articles 14 and 22(1) of the Constitution further impose an obligation on the State to uphold equality before the law. In 1987, the Legal Services Authorities Act was enacted by Parliament and became effective on November 9, 1995. The Act aims to establish a uniform nationwide network dedicated to offering competent and free legal services to the weaker sections of society.

The National Legal Services Authority (NALSA) has been constituted under the Legal Services Authorities Act, 1987 to provide free Legal Services to the weaker sections of the society. The Chief Justice of India is the Patron-in-Chief and the Senior most Hon’ble Judge, Supreme Court of India is the Executive Chairman of the Authority. Under NLSA, the State Legal Services Authorities (SLSAs) and DLSAs were formed.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates