The Central Board of Direct Taxes (CBDT) has issued Notification No. 128/2025-Income Tax, granting an income tax exemption to the All India Council for Technical Education (AICTE) in New Delhi. This exemption is authorized under clause (46) of Section 10 of the Income-tax Act, 1961. The notification specifies six categories of income that are exempt, including grants/subsidies from government bodies, regulatory charges, various examination fees (RTI, CMAT, GPAT), interest on bank deposits, and miscellaneous charges. The exemption is subject to certain conditions: AICTE must not engage in any commercial activity, the nature of its activities and specified income must remain consistent, and it must file its income tax return as required by law. The notification is effective for a multi-year period, specifically for assessment years 2024-2025 to 2028-2029, covering the corresponding financial years. The explanatory memorandum confirms that the retrospective application of this notification does not adversely affect any person.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 128/2025 – Income Tax | Dated: 1st August, 2025
S.O. 3558(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, ‘All India Council for Technical Education’, New Delhi, (PAN: AAAJA1571E), a Council established by the Central Government, in respect of the following specified income arising to that Council, namely:-
a. Grants/subsidies received from the Government/Govt. bodies;
b. Regulatory Charges;
c. RTI fee and Examination fee;
d. CMAT/GPAT fee;
e. Interest on bank deposits
f. Miscellaneous charges/receipts
2. This notification shall be effective subject to the conditions that All India Council for Technical Education, New Delhi-
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 to 2025-2026 relevant for the financial years 2023-2024 to 2024-2025 and shall be applicable for assessment year 2026-2027 to 2028-2029 relevant for the financial year 2025-26 to 2027-28.
[Notification No. 128 /2025/F. No. 300196/18/2024-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.
