Union Territory Chandigarh’s State Legal Service Authority Receives Special Income Tax Exemption

Title: Union Territory Chandigarh’s State Legal Service Authority Receives Special Income Tax Exemption

 

New Delhi, January 23, 2024 – In a recent notification by the Ministry of Finance, the Central Board of Direct Taxes has granted a significant income tax exemption to the ‘State Legal Service Authority Union Territory Chandigarh’ (PAN: AAAGS1716A). The exemption, authorized under clause (46) of section 10 of the Income-tax Act, 1961, is applicable to specified income arising to the Authority.

 

Details of the Exemption:

The ‘State Legal Service Authority Union Territory Chandigarh’ has been granted this special exemption for various categories of income, which includes:

 

1. Grants received from the Punjab and Haryana High Court, as well as the Central Authority, i.e., National Legal Services Authority constituted under the Legal Services Authority Act, 1987.
2. Grants or donations 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.
5. Interest earned on bank deposits.

 

Conditions for Exemption:

To maintain the income tax exemption, the ‘State Legal Service Authority Union Territory Chandigarh’ is required to adhere to certain conditions, including:

 

1. Not engaging in any commercial activity.
2. Ensuring that its activities and the nature of the specified income remain unchanged throughout the financial years.
3. Filing a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

 

Effective Period and Application:

This significant notification is 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.

 

Explanatory Memorandum:

The accompanying explanatory memorandum certifies that no person is adversely affected by giving retrospective effect to this notification.

 

This move by the Ministry of Finance provides a notable boost to the ‘State Legal Service Authority Union Territory Chandigarh,’ recognizing its vital role in legal services and facilitating its financial stability.

 

For more updates on financial and legal matters, stay tuned with us.

 

[Notification No. 15/2024 F. No. 196/18/2020-ITA-I(Part-1)]

VIKAS SINGH, Director (ITA-I)

 

Source: https://incometaxindia.gov.in/communications/notification/notification-15-2024.pdf