CBDT exempts Income of High Court Legal Service Committee u/s 10(46) of Income Tax

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) shared a notification on September 22, 2025, for income tax exemption.

In powers given by Section 10(46) of the Income Tax Act, 1961 (43), the Central Government notifies the ‘High Court Legal Service Committee‘ for income tax exemption. It is an authority incorporated by the State Authority, Union Territory, Chandigarh, in consultation with the Chief Justice of the High Court of Punjab and Haryana under the Legal Service Authority Act, 1987 (No. 39).

1. The exemption applies to the income earned by the High Court Legal Service Committee from the sources mentioned below—

• Cost levied by the Hon’ble Punjab and Haryana High Court, Chandigarh.
• Grants received from the Central Government, state governments, government agencies, and other authorities for the purposes of the Legal Services Authorities Act, 1987.
• Interest income earned on bank deposits.

2. This notification will be effective subject to the conditions that the High Court Legal Services Committee, Chandigarh-

• Will not be involved in any commercial activity.
• Activities and the nature of the mentioned income will remain unchanged throughout the financial years and
• Will file return of income in accordance with the provision of Section 139 (4C) and clause (g) of the Income-tax Act, 1961.

3. This notification will be deemed to have been applied for the Assessment Years 2023-24 to 2025-26, relevant for Financial Years 2022-23 to 2024-25, and will apply with respect to the Assessment Years 2026-27 and 2027-28, relevant for Financial Years 2025-26 and 2026-27.