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Filing of income u/s 23(c)

Shamla AK (Ms.) (42 Points)

01 January 2018

Dear Sir/Madam,

One of our clients which is a Trust of College having gross receipt below 1 crore, wants to claim exemption under section 23(c). Can you please explain me how to file the income tax return in this case( like ITR form, the head of income, how to declare exemption etc)

Thank you!

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185408 Points)
Replied 01 January 2018

As per section 10(23C), the income of certain funds, Universities, educational institutions, hospitals, etc., are not includible in the total income. There are about fourteen sub-clauses to this section, and about 18 provisos. Among the institutions etc., this article is confined to educational institutions only for the purpose of brevity.

Types of educational Institutions eligible for exemption u/s 10(23C):

i) The first class of educational institution dealt with in the Income tax Act is which is financed by the Government. Any income received on behalf of educational institutions existing solely for educational purposes and not for purposes of profit, and which is wholly and substantially financed by the Government is exempt under sub-clause (iiiab).

Refer circular: incometaxindia.gov.in/circular/circular14