District Legal Services Authority, Panipat, Gets Income Tax Exemption on Specified Income

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance, India (Department of Revenue), has issued a notification on 27 March 2026. This notification is regarding giving tax exemption to the specified income of the DLSA Panipat, in exercise of the powers under section 10(46) of the Income-Tax Act, 1961.

The central government has given tax exemption to the following income of the District Legal Services Authority, Panipat:

• Grants from the High Court/Legal Services Authorities
• Grants/donations from the central Haryana government, under the Legal Services Authorities Act, 1987
• Amount from court order or other sources
• Recruitment application fees
• interest on bank deposits

This exemption is granted with certain specific conditions, which are mandatory: –

1. Authority will not do any commercial activity
2. The nature of income will remain unchanged.
3. Income tax returns must be filed under the provisions of clause (g) of sub-section (4C) of section 139 of the Income Tax Act, 1961.

If these conditions are not complied with, penal action can be taken under the provisions of the Income Tax Act, 1961, and the exemption under Section 10(46) can be withdrawn.

This notification is deemed applicable for Assessment Years 2023-24 to 2025-26 (FY 2022-23 to 2024-25) and will be applicable for Assessment Years 2026-27 to 2027-28 (FY 2025-26 to 2026-27).