CBDT notifies Tax Exemption for District Legal Service Authority in Haryana

The Ministry of Finance, via Notification No. 115/2025 – Income Tax, has notified the ‘District Legal Service Authority’ in Haryana as a tax-exempt body under Section 10(46) of the Income-tax Act, 1961. This exemption applies to specific income sources, including grants from the Punjab and Haryana High Court, National Legal Services Authority, Haryana State Legal Services Authority, and the Central or State Government for purposes related to the Legal Services Authorities Act, 1987. Additionally, amounts received under court orders, recruitment application fees, and interest from bank deposits are also exempt. This exemption is contingent upon the District Legal Service Authorities not engaging in commercial activities, maintaining consistent activities and income nature, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act. The notification is effective retrospectively from assessment year 2024-2025 and will apply for assessment years 2025-2026, 2026-2027, 2027-2028, and 2028-2029.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES).

Notification No. 115/2025 – Income Tax | Dated: 14th July, 2025

S.O. 3204(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’ as specified in the Schedule to this notification, 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), as a ‘class of body’ 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 each of the District Legal Service Authority-

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.

3. This notification shall be deemed to have been applied for assessment years 2024-2025 and shall apply with respect to the assessment years 2025-2026, 2026-2027, 2027-2028 and 2028-2029.

SCHEDULE

[Notification No. 115/2025/F. No. 300196/64/2018-ITA-I(Part-1)]
MEENAKSHI SINGH, Dy. Secy.

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect to this notification.