24 May 2014
whether school income is exempt from tax. schools received fees from students and it is fully utilized for the purpose of mainteanance of buildings. the school is aided from the government of tamilnadu. school has not pan.notice received from incometax department for cash transaction query.
25 May 2014
There is no general exemption for a schools income. Even though education is in the nature of charitable purpose, to enjoy this benefit the organisation running the school must get itself registered with the IT Department. In the meanwhile if the total income of the school including the grant from the GOTN less the expenses of the school, (maintanence, etc. ) is less than 2 lakhs there may not be any tax liability. This again depends on the nature of the organisation running the school. It would be advisable to register the school/organisation as early as possible.
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