Income Tax Exemption for Haryana District Legal Authorities

Notification u/s 10(46) of the Income Tax Act, 1961 in the case of District Legal Service Authority, Haryana

 The Central Board of Direct Taxes (CBDT) has issued Notification No. 119/2024 under Section 10(46) of the Income-tax Act, 1961, granting tax exemptions to District Legal Service Authorities (DLSAs) in Haryana. These authorities, constituted under the Legal Services Authorities Act, 1987, are exempted from tax on specific incomes, including grants from the National, State, or High Court legal services authorities, donations from the Central or Haryana Government, court-ordered amounts, recruitment application fees, and interest on bank deposits.

The exemption is applicable for the financial years 2023-2024 to 2027-2028, corresponding to the assessment years 2024-2025 to 2028-2029. Conditions for exemption include restrictions on engaging in commercial activities, maintaining the specified nature of income throughout the period, and filing income returns as per Section 139(4C)(g).

The notification applies to the DLSAs of Hisar, Bhiwani, Kurukshetra, and Palwal, with their respective PANs specified. This initiative aims to support legal aid services while ensuring compliance with financial and operational conditions under the Income-tax Act.

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

Notification No. 119/2024- Income tax | Dated: 19th November, 2024

S.O. 4982(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 Act1987 (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 applicable for assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and
2028-2029 relevant for financial years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028 respectively.

SCHEDULE

[Notification No. 119 /2024/F. No. 300196/64/201 8-ITA-I (Pt.1)]

ASHWANI KUMAR, Under Secy.