CBDT exempts State Legal Service Authority Union Territory Chandigarh from Income Tax u/s 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT ), vide notification no. 15/2024 dated January 23, 2024 has notified the income tax exemption to the “State Legal Service Authority Union Territory Chandigarh” under section 10(46) of the Income-tax Act, 1961.

The following income are exempted from the income tax:

1. Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority constituted under Legal Services Authorities Act, 1987;
2. 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;
3. Amount received under the order of the court;
4. Fees received as recruitment application fee; and
5. Interest earned on bank deposits.

However, this notification shall be effective subject to the conditions that State Legal Service Authority Union Territory Chandigarh –

1. shall not engage in any commercial activity;
2. activities and the nature of the specified income shall remain unchanged throughout the financial years; and
3. 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.

This notification shall be deemed to have been applied for assessment years 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.

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