Furnishing of return of income by certain universities and hospitals referred to in section 10 (23C) of the Act

[Admin TMI]

Question - What are the changes in section 10(23C) in Finance Bill 2015 ?

[Admin TMI]

Furnishing of return of income by certain universities and hospitals referred to in section 10 (23C) of the Act

Under the provisions of section 10 of the Act, exemption under sub-clause (iiiab) and (iiiac) of clause (23C), subject to specified conditions, is available to such university or educational institution, hospital or other institution which is wholly or substantially financed by the Government.

Under the existing provisions of section 139, all entities whose income is exempt under clause (23C) of section 10, other than those referred to in sub-clauses (iiiab) and (iiiac) of the said clause, are mandatorily required to file their return of income.

It is proposed to amend the Act in order to provide that entities covered under clauses (iiiab) and (iiiac) of clause (23C) of section 10 shall be mandatorily required to file their return of income.

This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years.

AI Summary

Mandatory return filing for government-funded universities and hospitals under clause 23C will apply from assessment year 2016-17. The amendment provides that entities referred to in sub-clauses (iiiab) and (iiiac) of clause (23C) of section 10, being universities, educational institutions, hospitals or other institutions wholly or substantially financed by the Government, shall be mandatorily required to file their return of income. This requirement will take effect from 1 April 2016 and apply to the assessment year 2016-17 and subsequent assessment years.