CBDT Notifies Section 10(46) Exemption for Legal Services Authority in Haryana
The Central Board of Direct Taxes (CBDT) under the Ministry of Finance and Department of Revenue has recently shared a notification (No. 27/2026) regarding income tax exemption.
The Central Government, using its powers given by clause (46) of section 10 of the Income-tax Act, 1961 (43), notifies the CJM-cum-District Legal Services Authority, Fatehabad, for tax exemption. It is formed under the Legal Services Authorities Act, 1987, for the said clause.
The following incomes are exempt from tax:
- Grants received from the Punjab and Haryana High Courts or the Haryana State Legal Services Authority.
- Grants or donations received from the Central Government or the Government of Haryana.
- Money received under court orders
- Recruitment application fees received
- Interest earned on bank deposits
However, this benefit will only be made available if the assessee fulfils the following conditions:
- The Authority will not be involved in any commercial activities.
- Its activities and types of income must remain the same during the financial years.
- It must file its income tax return as required under Section 139(4C)(g) of the Income-tax Act.
- If these conditions are not followed, the government can take penalty action and cancel the tax exemption under Section 10(46).
Time Period of Exemption:
This notification will be treated as applicable from Assessment Year 2023-24 to 2025-26, relevant for FY 2022-23 to 2024-25, and also for Assessment Year 2026-27 to 2027-28, relevant for FY 2025-26 to 2026-27.