With retroactive effect from FY’21 through FY’25, the Finance Ministry exempts the CBSE from paying income tax
The Central Board of Secondary Education (CBSE) has been exempted by the finance ministry from paying income tax on earnings from examination fees, sales of text books and publications, among other things.
The I-T exemption was granted retroactively beginning with the fiscal years 2020–2021 (for the time period from June 1, 2020, to March 31, 2021), as well as 2021–2022 and 2022–2031.
The exemption will remain in effect for the remainder of this fiscal year and the following one (2024-2025).
The Central Board of Direct Taxes (CBDT) said in a notification that the government had exempted the Central Board of Secondary Education, Delhi, a board created by the Central government, from paying income tax on certain income pursuant to section 10 (46) of the I-T Act.
Exam fees, affiliation fees, the sale of textbooks and publications, registration fees, sports fees, training costs, and other academic receipts are a few examples of this type of income.
Additionally, income tax exemptions would apply to interest received on these specific types of income, interest on income tax refunds, and earnings from CBSE initiatives and programmes.
The CBDT stated that the tax exemption is contingent upon CBSE not engaging in any commercial activity and that activities and the nature of the specified income stay constant over the course of the financial years.
The CBSE may submit an application to the CBDT for special permission to revise earlier years’ income tax returns and claim a refund for taxes paid on specified income, as the time period for revision of returns has already passed, according to Om Rajpurohit, joint partner at AMRG & Associates (Corporate & International Tax), who noted that the current notification has been provided for a limited period starting retroactively from June 1, 2020 to FY 2024–25.
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