Centre Grants Income Tax Exemption to District Legal Services Authority Panchkula for 2026-27:

The Central Government has granted an income tax exemption to the District Legal Services Authority (DLSA), Panchkula for the tax year 2026-27. The notification was issued by the Ministry of Finance’s Department of Revenue on August 11, 2026.

Under the notification, certain types of income received by DLSA Panchkula will be exempt from income tax. These include grants received from the Punjab and Haryana High Court, National Legal Services Authority (NALSA) and Haryana State Legal Services Authority for carrying out activities under the Legal Services Authorities Act, 1987.

The exemption will also cover grants and donations received from the Central Government and the Haryana Government for legal services-related work. Amounts received under court orders, recruitment application fees and interest earned on bank deposits will also be covered.

However, the exemption comes with certain conditions. DLSA Panchkula must not engage in any commercial activity and must file its income tax return as required under the Income-tax Act, 2025.

The notification also states that the nature of the Authority’s activities and the specified income must remain unchanged during the tax year. If the Authority fails to meet these conditions, the government can withdraw the tax exemption and initiate proceedings under the Income-tax Act, 2025.

The exemption will be applicable for the tax year 2026-27.