Income of certain Universities, Hospitals, Educational Institution & Medical Institution - Schedule VII(New) / Section 10(23C)(iiiab), (iiiac), (iiiad) and (iiiae)(Old)

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....exemption is subject to the following conditions: • the university or educational institution must exist solely for educational purposes and not for purposes of profit; and • where the Government grant exceeds such percentage of the total receipts, including donations, as may be prescribed, the institution is considered to be substantially financed by the Government during the relevant tax year. Schedule VII, Table Sl. No. 18 - Government-financed Hospitals and Other Institutions Any hospital or other institution wholly or substantially financed by the Government.   The following conditions are prescribed: (a) Nature of medical activity The institution must be for: • recept....

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....and not for purposes of profit. In addition, the aggregate annual receipts of the relevant universities, educational institutions, hospitals and other institutions must not exceed Rs.5 crore. The provision also specifically deals with anonymous donations. Where such university, educational institution, hospital or other institution receives an anonymous donation as defined under section 355(a), the provisions of section 337, Table Sl. No. 1, relating to specified income of a registered non-profit organisation, apply mutatis mutandis, and such anonymous donations are excluded from the income on which no tax is payable. Comparative Analysis: Section 10(23C)(iiiab), (iiiac), (iiiad) and (iiiae) (Income-tax Act, 1961) vs. Schedule VII,....

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....ced hospital Section 10(23C)(iiiac) covers any hospital or other institution for reception and treatment of specified persons, existing solely for philanthropic purposes and not for purposes of profit, and wholly or substantially financed by Government. Schedule VII, Sl. No. 18 covers any hospital or other institution wholly or substantially financed by Government, subject to conditions relating to medical treatment and philanthropic purpose. Medical purpose Covers reception and treatment of persons suffering from illness or mental defectiveness, persons during convalescence, or persons requiring medical attention or rehabilitation. Contains substantially corresponding conditions relating to reception and treat....