CBDT Notification No. 28/2026, dated 24 March 2026, grants income tax exemption under section 10(46) of the Income-tax Act to the District Legal Services Authority, Karnal, a statutory body constituted under the Legal Services Authorities Act, 1987. The exemption applies to specified income including grants from judicial and government authorities, donations, court-directed receipts, recruitment fees, and interest on bank deposits. The benefit is subject to strict conditions: the authority must not engage in commercial activities, must maintain the same nature of activities and income, and must file returns as prescribed under section 139(4C). Non-compliance may lead to withdrawal of exemption and penal consequences. The notification is retrospective, covering assessment years 2023–24 to 2025–26, and will continue to apply for AY 2026–27 and 2027–28, ensuring continuity of tax relief for qualifying statutory functions.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 28/2026 – Income Tax | Dated: 24th March, 2026
S.O. 1535(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘District Legal Service Authority’, Karnal (PAN AAALC0999G), constituted by Government of Haryana for every District in the State of Haryana in exercise of powers conferred by sub-section (1) of section 9 of the Legal Services Authorities Act, 1987 (Central Act No. 39 of 1987), in respect of the following specified income arising to that body, namely:-
a. Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority and State Authority i.e. Haryana State Legal Services Authority for the purposes of the Legal Services Authorities Act, 1987;
b. Grants or donation received from the Central Government or the State Government of Haryana for the purpose of the Legal Services Authorities Act, 1987;
c. Amount received under the order of the Court;
d. Fee received as recruitment application fee; and
e. Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that ‘District Legal Service Authority’, Karnal-
a. shall not engage in any commercial activity;
b. activities and the nature of the specified income shall remain unchanged throughout the financial years; and
c. shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
2.1 Failure to comply with these conditions may result in initiation of penal action under provision of Income Tax Act, 1961 and withdrawal of the exemption granted u/s 10(46) of the Act.
3. This notification shall be deemed to have been applied for assessment years 2023-2024 to 2025-26 and shall apply with respect to the assessment years 2026-2027 and 2027-2028.
[Notification No. 28 /2026 /F. No. 300196/7/2026-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect (with effect from the year of filing of application before the Board/ Income Tax Department) to this notification.
