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

Educational institution exemption under section 10(23c) denied where aggregate annual receipts exceed prescribed threshold limit. Section 10(23c)(iiiad) grants income-tax exemption to universities and educational institutions existing solely for educational and not-for-profit purposes, conditional on their aggregate annual receipts not exceeding the amount prescribed; Rule 2BC(1) fixes that prescribed threshold, and institutions whose aggregate receipts exceed that threshold are not eligible for the exemption.