Railways's liability
This query is : Resolved
Shankar Shridhar
(Querist)
17 October 2010
Is central railway liable to pay income tax?
If no, please give the details which make it exempt!!
Thanx and cheers
If no, please give the details which make it exempt!!
Thanx and cheers
Sanjay Dugar
(Expert)
17 October 2010
No Railways are not required to pay income tax as it is a departmental undertaking. The status of railways is similar to Defense Ministry, Finance Ministry etc.
Shankar Shridhar
(Querist)
17 October 2010
THANKS
Mr Sanjay
will u please tell the section no that states that income tax is not applicable to departmental undertaking?
Mr Sanjay
will u please tell the section no that states that income tax is not applicable to departmental undertaking?
19 July 2025
Relevant Legal Provisions:
Income Tax Act, 1961 — Section 10(20):
Exempts income of the Government or a specified undertaking of the Government from income tax.
Railway receipts are considered government receipts.
CBDT Circulars and judicial rulings also recognize departmental undertakings like Railways as exempt from income tax.
Income Tax Act, 1961 — Section 10(20):
Exempts income of the Government or a specified undertaking of the Government from income tax.
Railway receipts are considered government receipts.
CBDT Circulars and judicial rulings also recognize departmental undertakings like Railways as exempt from income tax.
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