CBDT Confers Income Tax Exemption Status to Haryana District Legal Services Authority
The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has issued a notification dated March 24, 2026, in New Delhi, concerning the income tax exemption conferred to a certain legal services authority.
According to the notification, the government has granted income tax exemption to the ‘District Legal Service Authority’, Karnal, having PAN AAALC0999G under Section 10(46) of the Income Tax Act, 1961, specifically clause (46) of section 10, read with sub-section (1) of section 9 of the Legal Services Authorities Act, 1987. This exemption will apply to the following sources of income:
- Grants received for legal services (such as from the National Legal Services Authority, Haryana State Legal Services Authority, etc.)
- Grants or donations received from the central or state government
- Amounts received pursuant to court orders
- Application fees
- Interest earned on bank deposits
The provided exemption will only survive if the authority continues to fulfil the following conditions:
- The Authority shall not engage in any commercial activity.
- The nature of income and activities must remain consistent in every financial year.
- Shall file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income Tax Act, 1961.
NOTE: The authority will be liable for penal action if it does not follow the aforementioned conditions, and also the exemption may be withdrawn.
The notification is deemed to have been applied for Assessment Years 2023-24 to 2025-26 and will be applicable for Assessment Years 2026-27 and 2027-28.