sec 10(23c) IT act 1961

[hemanth ch]

when we have to apply 10(23c)?In case of educational institution whose annual total receipts exceeds rupees 1 crore we cann't get exemption from IT act 1961 then what we have to do?

[DR.MARIAPPAN GOVINDARAJAN]

Section 10(23c) (iiiad) provides that any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed. Rule 2BC(1) provides the limit as ₹ 1 crore. Since the total receipts exceeds ₹ 1 crore, in my view, you cannot get exemption.

AI Summary

Tax Exemption Clarified: Educational Institutions Over 1 Crore Not Eligible Under Section 10(23c)(iiiad) of Income Tax Act. A query was raised regarding the applicability of Section 10(23c) of the Income Tax Act, 1961, specifically for educational institutions with annual receipts exceeding 1 crore. The response clarified that under Section 10(23c)(iiiad), educational institutions solely for educational purposes can receive tax exemptions if their annual receipts do not surpass the prescribed limit. Rule 2BC(1) sets this limit at 1 crore. Therefore, if an institution's receipts exceed 1 crore, it cannot claim the exemption under this section.