Income Tax: Big information is coming out from the Ministry of Finance. This is going to give a lot of relief to the tax payers.
The Finance Ministry has informed that the Central Board of Secondary Education (CBSE) has been exempted from income tax on income from examination fees, sale and publication of textbooks and other works. CBSE has got income tax exemption from the previous date. This exemption has been given for the financial year 2020-21 (June 1, 2020 to March 31, 2021) and for the financial years 2021-22 and 2022-23. The exemption will continue in the current financial year and the next financial year 2024-25 as well.
The Central Board of Direct Taxes (CBDT) said in a notification that the government has notified the Delhi-based Central Board of Secondary Education under section 10(46) of the Income Tax Act and exempted it from payment of income tax on its assessed income. CBSE has been formed by the central government.
There are many types of fees involved.
Let us tell you that such income includes examination fees, fees associated with CBSE, sale of text books and publications, registration fees, sports fees and training fees. In addition, the amount received from CBSE projects/programmes, interest on income tax refund and interest earned on such income will be exempt from income tax.
What is the condition for tax exemption
According to CBDT, tax exemption is subject to the condition that CBSE will not engage in any commercial activity and the nature of the prescribed income will not change throughout the financial year.
Will get benefit in income tax return
Om Rajpurohit, joint partner (corporate and international tax) of AMRG & Associates, said that the current notification is for a limited period. This last date is from June 1, 2020 to the financial year 2024-25. In view of this, CBSE can apply to CBDT for special permission to revise the income tax returns of previous years and can claim ‘refund’ of the tax paid on the assessed income.
