CBDT Exempts CBSE: The Income Tax Department has exempted CBSE from paying tax from FY 2020-21 to FY 2024-25. CBDT has informed about this.
The Finance Ministry has given strong relief to the Central Board of Secondary Education ie CBSE. CBSE has got rid of tax for five years in one go. This means that the Central Board of Secondary Education will not have to pay any income tax on the earnings of five years. The Central Board of Direct Taxes (CBDT) has recently issued a notification in this regard.
Exemption for these 5 years
Let us tell you that CBSE earns from examination fees, sale and publication of text books and other works. The Income Tax Department has exempted CBSE from paying tax on these earnings. This exemption given to CBSE is for the financial year 2020-21 (June 1, 2020 to March 31, 2021) and the financial years 2021-22 and 2022-23. Along with this, CBSE will continue to get the benefit of this exemption in the current financial year and in the next financial year i.e. 2024-25.
There will be no tax on these earnings
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. Income exempt from income tax includes examination fees, fees associated with CBSE, sale of text books and publications, registration fees, sports fees and training fees, etc.
Got relief with this condition
Apart from these, the amount received from CBSE projects/programmes, interest on income tax refund and interest earned on such income will also be exempt from income tax. According to the CBDT, the tax exemption granted to CBSE is subject to the condition that CBSE will not engage in any commercial activity and will not change its methods of earning during the entire period.
Know the meaning of this discount
Om Rajpurohit, joint partner (corporate and international tax), AMRG & Associates, said 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 claim refund of tax paid on assessed income.
