The Central Board of Direct Taxes ( CBDT ), vide notification no. S.O. 4982(E) dated 19th November 2024 has granted income tax exemption to the District Legal Service Authorities ( DLSA ) in Haryana, following a notification issued under clause (46) of section 10 of the Income-tax Act, 1961.
This exemption applies to the income derived by DLSAs, which are constituted by the Government of Haryana for each district in the state, under the provisions of the Legal Services Authorities Act, 1987.
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The notification states the types of income eligible for exemption, including grants received from the Punjab and Haryana High Court, the National Legal Services Authority ( NLSA ), and the Haryana State Legal Services Authority, all directed towards fulfilling the objectives of the Legal Services Authorities Act.
The following income are exempted for tax:
(a) Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority and State Authority i.e. Haryana State Legal Services Authority for the purposes of the Legal Services Authorities Act, 1987;
(b) Grants or donation received from the Central Government or the State Government of Haryana for the purpose of the Legal Services Authorities Act, 1987;
(c) Amount received under the order of the Court;
(d) Fee received as recruitment application fee; and
(e) Interest earned on bank deposits.
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This notification shall be effective subject to the conditions that each of the District Legal Service Authority-
(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.
The notification will apply for the assessment years 2024-2025 through 2028-2029, which correspond to the financial years from 2023-2024 to 2027-2028.
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