The Ministry of Finance, via Notification No. 59/2025 – Income Tax dated June 16, 2025, has exempted the Himachal Pradesh Board of School Education, Dharamshala (PAN: AAAJH0373H), from income tax on specific income sources. This exemption, granted under clause (46) of section 10 of the Income-tax Act, 1961, applies to grants and advances from the State Government, fees collected under the Himachal Pradesh Board of School Education Act, 1968, income from the sale of educational materials, and interest on bank deposits. The exemption is conditional on the Board not engaging in commercial activities, maintaining the nature of its specified income and activities, and filing its income tax returns as per section 139(4C)(g) of the Income-tax Act, 1961. This notification is effective retrospectively for assessment years 2020-2021 to 2023-2024, covering financial years 2019-2020 to 2022-2023. An explanatory memorandum clarifies that this retrospective application does not adversely affect any person.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 59/2025 – Income Tax | Dated: 16th June, 2025
S.O. 2689(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, ‘Himachal Pradesh Board of School Education’, Dharamshala (PAN: AAAJH0373H), a Board established under Himachal Pradesh Board of School Education Act, 1968, in respect of the following specified income arising to that Board, namely:
a. Grants/advances/receipts received from State Government of Himachal Pradesh.
b. Fees/charges (by whatever name called) levied/received as per Himachal Pradesh Board of School Education Act, 1968
c. Receipt/income from sale of books and other educational material
d. Interest on bank deposits.
2. This notification shall be effective subject to the conditions that ‘Himachal Pradesh Board of School Education’, Dharamshala –
a. shall not engage in any commercial activity;
b. activities and the nature of the specified income shall remain unchanged throughout the financial year; 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.
3. This notification shall be deemed to have been applied for assessment years 2020-2021 to 2023-2024 relevant for the financial years 2019-2020 to 2022-2023 respectively.
[Notification No. 59 /2025 /F. No. 300196/06/2019-ITA-I]
MEENAKSHI SINGH, Dy. Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
