Himachal Pradesh Board of School Education Exempted from Income Tax: CBDT [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has granted income tax exemption to the Himachal Pradesh Board of School Education (HPBOSE), Dharamshala, under clause (46) of section 10 of the Income-tax Act, 1961.

The exemption applies to specific categories of income earned by the Board and will be effective retrospectively from assessment years 2020-2021 to 2023-2024, covering financial years 2019-2020 to 2022-2023.

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As per the notification, the exempted income includes:

(a) Grants, advances, and receipts from the Government of Himachal Pradesh;

(b) Fees or charges received under the provisions of the Himachal Pradesh Board of School Education Act, 1968;

(c) Income from the sale of books and other educational materials; and

(d) Interest earned on bank deposits.

As a statutory body created by the Himachal Pradesh Board of School Education Act of 1968, HPBOSE is essential to the state's textbook publishing, curriculum development, and school-level testing. In order to promote its educational responsibilities, the government has granted this exemption, acknowledging its non-commercial and public service-oriented purpose.

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However, the exemption is subject to certain conditions. The Board must not engage in any commercial activity, and both its operations and the nature of income must remain unchanged during the financial years covered. Additionally, HPBOSE is required to file its income tax return in accordance with clause (g) of sub-section (4C) of section 139 of the Income-tax Act.

By extending the benefit retrospectively, the CBDT has provided significant relief to HPBOSE, ensuring that its educational activities and revenues are not burdened with tax obligations inconsistent with its public purpose.

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