Educational trusts for profit cannot claim income tax exemption: SC

Income Tax

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• Oct 20, 2022
  Supreme Court on Wednesday said profit-oriented educational trusts or societies cannot claim exemption under the Income Tax Act.The bench of Chief Justice of India UU Lalit, Justices S Ravindra Bhat and PS Narasimha said that such educational trusts or societies should solely be concerned with education or education related activities under Section 10(23C) of the Income Tax Act(the Act).
  

• The Section states that any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government qualify for tax exemption under the said section."Our Constitution reflects a value which equates education with charity. That it is to be treated as neither business, trade, nor commerce, has been declared by the pronouncement of this very court," the court said.

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