Tax exemption for educational institutions does not require prescribed investment modes; separate rules govern charitable exemption applicants. Income of an institution existing solely for educational purposes and not for profit is exempt from tax and such institutions are not required to invest their funds in the modes specified by provisions governing charitable trust investments. This clarification does not apply to institutions seeking exemption under the separate charitable-trust provisions, which remain subject to the applicable investment-mode requirements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax exemption for educational institutions does not require prescribed investment modes; separate rules govern charitable exemption applicants.
Income of an institution existing solely for educational purposes and not for profit is exempt from tax and such institutions are not required to invest their funds in the modes specified by provisions governing charitable trust investments. This clarification does not apply to institutions seeking exemption under the separate charitable-trust provisions, which remain subject to the applicable investment-mode requirements.
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