New Delhi: The Central Board of Secondary Education (CBSE) has been exempted by the Finance Ministry from paying income tax on earnings from examination fees, the sale of textbooks and publications, among other things. In this fiscal year and the following financial year, the exemption will remain in effect (2024-25).
According to news agency PTI, the income tax exemption has been retroactively granted beginning with the fiscal years 2020–2021 (for the period from June 1, 2020, to March 31, 2021), as well as 2021–22, and 2022–23. (Also Read: ICICI Bank Launches EMI Facility For UPI: Here’s What It Means And How To Use It)
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. (Also Read: HDFC Cuts MCLR On Selected Tenures; EMIs To Go Down – Check Revised Loan Rates)
Moreover, income tax exemptions would apply to interest received on these specific types of income, interest on income tax refunds, and receipts from CBSE initiatives and programmes.
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.
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.
“Given that the current notification has been provided for a limited period beginning retroactively from June 1, 2020 to FY 2024-25, the CBSE may file 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 expired,” Om Rajpurohit, joint partner (corporate & international tax), AMRG & Associates, told PTI.