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Budget 2021-22 + FINANCE Bill, 2021
Raising of prescribed limit for exemption under sub-clause (iiiad) and (iiiae) of clause (23C) of section 10 of the Act
Clause (23C) of section 10 of the Act provides for exemption of income received by any person on behalf of different funds or institutions etc. specified in different sub- clauses.
Sub-clauses (iiiad) of clause (23C) of the section 10 provides for the exemption for the income received by any person on behalf of university or educational institution as referred to in that sub-clause. The exemptions under the said sub-clause are available subject to the condition that the annual receipts of such university or educational institution do not exceed the annual receipts as may be prescribed. Similarly, sub-clauses (iiiae) of clause (23C) of the section provides for the exemption for the income received by any person on behalf of hospital or institution as referred to in that sub-clause. The exemptions under the said sub-clause are available subject to the condition that the annual receipts of such hospital or institution do not exceed the annual receipts as may be prescribed. The presently prescribed limit for these two sub-clauses is ₹ 1 crore as per Rule 2BC of the Income-tax Rule.
Representations have been received to increase this limit of ₹ 1 crore, as provided under Rule 2BC. In order to provide benefit to small trust and institutions, it has been proposed that the exemption under sub-clause (iiiad) and (iiiae) shall be increased to ₹ 5 crore and such limit shall be applicable for an assessee with respect to the aggregate receipts from university or universities or educational institution or institutions as referred to in sub-clause (iiiad) as well as from hospital or hospitals or institution or institutions as referred to in sub-clause (iiiae).
This amendment will take effect from 1st April, 2022 and will accordingly apply to the assessment year 2022-23 and subsequent assessment years.
[Clause 5]
Full Text:
Exemption threshold for receipts on behalf of educational and hospital institutions expanded, widening small trust eligibility from next assessment year. Amendment raises the prescribed annual receipts limit that determines entitlement to the exemption under sub-clauses (iiiad) and (iiiae) of clause (23C) of section 10 for income received on behalf of universities/educational institutions and hospitals/institutions. The increased threshold applies to aggregate receipts from the specified institutions, expanding eligibility for small trusts and institutions. The amendment takes effect from 1 April 2022 and applies to the assessment year 2022-23 and subsequent assessment years. of Press 'Enter' after typing page number.
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