CBDT: District Legal Service Authority in Haryana Get Income Tax Exemption

The Central Board of Direct Taxes (CBDT) has issued a notification dated July 14, 2025, where it announced that the District Legal Service Authority in Haryana, established under Section 9(1) of the Legal Services Authorities Act, 1987 as a ‘class of body‘ whose some incomes are exempt from income tax. The notification is considered to be effective from the Assessment Year 2024-25 and will continue to apply for the Assessment Years 2025-26 to 2028-29.

Exempted Income

As per the notification, the following income will be taxed:

• The grants received from the Punjab and Haryana High Court, Central Authority, i.e., the National Legal Services Authority and State Authority, i.e. Haryana State Legal Services Authority, for the purposes of the Legal Services Authorities Act.
• Interest income earned from bank deposits
• Donations and grants obtained from the central state government of Haryana for the purpose of the Legal Services Authorities Act, 1987.
• Fees collected from the recruitment application
• Money received under the order of the court.

Conditions to Be Fulfilled

To be qualified for this exemption, the District Legal Service Authorities must fulfil the following conditions:

• It should not be engaged in any commercial activity.
• It must keep their activities and the nature of the specified income the same.
• It must file income tax returns (ITR).

Schedule of Authorities

There are two authorities under the District Legal Service Authority:

• District Legal Service Authority, Gurgaon
• District Legal Service Authority, Mewat