Income of Educational Institutions [Section 10(23C)(iiiab)/(iiiad)/(vi)] and Income of Hospital [Section 10(23C)(iiiac)/(iiiae)/(via)]

Income of Educational Institutions

Section 10(23C)(iiiab)

Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government would be exempt under section 10(23C)(iiiab).

Section 10(23C)(iiiad)
Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit would be exempt under section 10(23C)(iiiad) if the aggregate annual receipts of such university or educational institution do not exceed Rs. 1 Core.

Note:
W.e.f. Assessment Year 2022-23, the Finance Act, 2021 has increased the limit of aggregate
annual receipts from Rs. 1 crore to Rs. 5 crore.

Section 10(23C)(vi)
Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority. An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.

Income of Hospital [Section 10(23C)(iiiac)/(iiiae)/(via)]

Income arises to any hospital or other institution for the reception and treatment of persons
suffering from illness or mental defectiveness or for the reception and treatment of persons
during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes and not for purposes of profit, shall be exempt from tax under following situations:
1) If the hospital or other institution is wholly or substantially financed by the Government then exemption would be available under section 10(23C)(iiiac).
2) If the aggregate annual receipt of such hospital or institution do not exceed Rs. 1 Crore then exemption would be available under section 10(23C)(iiiae).
Note:
W.e.f. Assessment Year 2022-23, the Finance Act, 2021 has increased the limit of
aggregate annual receipts from Rs. 1 crore to Rs. 5 crore.
3) If the hospital is approved by the prescribed authority. An application in the prescribed form and manner has to be made to the Principal Commissioner or Commissioner, for grant of approval.

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Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.