No section 11 tax exemption if educational institutions collects Capitation Fee: Madras HC

CIT Vs MAC Public Charitable Trust (Madras High Court) Conclusion: The Hon’ble Madras High Court observed that Juxtaposing the provisions of both the Acts viz., Income Tax Act, 1961 and the Tamil Nadu Educational Institutions (Prohibition of Collection of Capitation Fee) Act, 1992, with each other, it is explicit that collection of any amount in excess of what has been prescribed as fee or in the nature of donation or voluntary contribution either directly or indirectly to the institution or through some other person or institution or trust, as quid pro quo for the seat in any educational in...