CBDT allows Income Tax Exemptions to Legal Services and Aviation Bodies

The Central Board of Direct Taxes (CBDT) has issued two major notifications under Section 10(46) of the Income-tax Act of 1961 to grant income tax exemption to specified income of legal and aviation sectors from taxation.

The Two Notification Read as Follows:

Notification No. 119 /2024

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 Act, 1987 (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.

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.

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.

To Read More Details Refer to Notification Given Below:

Notification No. 120/2024

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, ‘National Aviation Security Fee Trust (PAN AADTN2508F), a trust established by the Central Government, in respect of the following specified income arising to that trust, namely:-

(a) Grant or subsidy or any receipt in the nature of grant as approved by/under directions of Ministry of Civil Aviation, Government of India;

(b) Aviation Security Fee collected at the prevailing rates as per orders of Ministry of Civil Aviation, Government of India;

(c) Amount transferred from escrow accounts for deposits of the passenger service fee (security component) maintained by airport operators with the scheduled banks for Ministry of Civil Aviation, Government of India as beneficiary; and

(d) Interest earned on bank deposits.

This notification shall be effective subject to the conditions that National Aviation Security Fee Trust,-

(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.

This notification shall be applicable with respect to the assessment years 2025-2026, 2026-2027, 2027-2028, 2028-2029 and 2029-2030 relevant for financial years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029 respectively.

For Official Notification Download PDF Given Below: