Section 10(23c)iiiae
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 December 2012
Is there any conditions to avail the exemption under section 10(23C)iiiae of the Income Tax Act?
and
What is the relation in between the section 11&12 and Section 10(23C)iiiae?
and
What is the relation in between the section 11&12 and Section 10(23C)iiiae?
31 December 2012
The condition prescribed is in relation to the aggregate annual receipts and the max. limit is of Rs. 1 crore.
.
I could not find any condition as regards exemption continuance.
.
In my view, Section 11& 12 provisions also do not have any impact on Section 10(23C)iiiae.
.
.
I could not find any condition as regards exemption continuance.
.
In my view, Section 11& 12 provisions also do not have any impact on Section 10(23C)iiiae.
.
Message likes :
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04 January 2013
Yes there is relation between both the sections. If the educational Institution is formed through a Trust Deed and registered with the charity commissioner then the provisions of 11 & 12 will be governed. The section reads as under
(iiiad) Any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed;
In this case the exemption is to be procured from the Central Government mere CIT exemption cannot allow you the exemption for education institutional where the gross income exceeds the limit
(iiiad) Any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed;
In this case the exemption is to be procured from the Central Government mere CIT exemption cannot allow you the exemption for education institutional where the gross income exceeds the limit
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 January 2013
Thanks Mr. Aggarwal for your valuable reply. But my ques was on section 10(23C)(iiiae) instead of (iiiad). If you opined that same provision shall apply in the clause (iiiae) then do we have to satisfy the condition of Section 11 & 12.
and 1 more issue i have. if you may please express your valuable advice on it.
Is there any requirement to obtain regn certificate under section 12A(a) for claiming exemption under section 10(23C)(iiiae).
And if we get registered, under section 12A(a) then what is the compliance are required to comply.
and 1 more issue i have. if you may please express your valuable advice on it.
Is there any requirement to obtain regn certificate under section 12A(a) for claiming exemption under section 10(23C)(iiiae).
And if we get registered, under section 12A(a) then what is the compliance are required to comply.
23 July 2025
Great topic! Here's a detailed explanation on Section 10(23C)(iiiae) and its relation with Sections 11, 12, and 12A:
Section 10(23C)(iiiae) – Exemption for Educational Institutions
This section grants exemption from income tax to certain educational institutions, subject to conditions.
It applies to universities or other educational institutions existing solely for educational purposes and not for profit, with aggregate annual receipts not exceeding the prescribed limit (usually Rs. 1 crore).
Conditions to avail exemption under Section 10(23C)(iiiae):
The institution must not be for profit.
The aggregate annual receipts must not exceed the prescribed limit (currently Rs. 1 crore).
Exemption under this clause needs to be obtained from the Central Government (not just from the Commissioner of Income Tax).
Relation between Sections 10(23C)(iiiae) and Sections 11 & 12:
Sections 11 and 12 provide exemption to charitable or religious trusts and institutions, including educational institutions, on income derived from property or voluntary contributions.
Section 10(23C)(iiiae) is a separate exemption for educational institutions — usually schools, colleges, or universities.
If an educational institution is set up as a trust and registered under Section 12A, then Sections 11 & 12 apply to it.
However, Section 10(23C)(iiiae) is an independent route for exemption, and institutions can claim exemption under this even if not registered under 12A, but must comply with its conditions and get approval from Central Government.
Requirement of Registration under Section 12A(a):
For claiming exemption under Section 10(23C)(iiiae), registration under Section 12A(a) is generally required.
Registration under 12A allows the institution to claim exemptions under Sections 11, 12, and other related provisions.
Without registration under 12A, exemption under 10(23C)(iiiae) cannot be claimed.
Compliance after getting registration under Section 12A(a):
File annual income tax returns regularly.
Maintain proper books of accounts and records.
Ensure the income is used for the specified charitable or educational purposes.
Comply with audit requirements as per Income Tax rules.
Submit necessary reports and documents to Income Tax Authorities.
Summary:
Aspect Section 10(23C)(iiiae) Sections 11 & 12
Applicability Educational institutions (limit on receipts) Charitable/religious trusts/institutions
Registration requirement Yes, registration under 12A needed Yes
Approval authority Central Government Commissioner of Income Tax
Conditions Aggregate receipts limit, not for profit Use of income for charitable purposes
Compliance Filing returns, audit, use of income Same
Section 10(23C)(iiiae) – Exemption for Educational Institutions
This section grants exemption from income tax to certain educational institutions, subject to conditions.
It applies to universities or other educational institutions existing solely for educational purposes and not for profit, with aggregate annual receipts not exceeding the prescribed limit (usually Rs. 1 crore).
Conditions to avail exemption under Section 10(23C)(iiiae):
The institution must not be for profit.
The aggregate annual receipts must not exceed the prescribed limit (currently Rs. 1 crore).
Exemption under this clause needs to be obtained from the Central Government (not just from the Commissioner of Income Tax).
Relation between Sections 10(23C)(iiiae) and Sections 11 & 12:
Sections 11 and 12 provide exemption to charitable or religious trusts and institutions, including educational institutions, on income derived from property or voluntary contributions.
Section 10(23C)(iiiae) is a separate exemption for educational institutions — usually schools, colleges, or universities.
If an educational institution is set up as a trust and registered under Section 12A, then Sections 11 & 12 apply to it.
However, Section 10(23C)(iiiae) is an independent route for exemption, and institutions can claim exemption under this even if not registered under 12A, but must comply with its conditions and get approval from Central Government.
Requirement of Registration under Section 12A(a):
For claiming exemption under Section 10(23C)(iiiae), registration under Section 12A(a) is generally required.
Registration under 12A allows the institution to claim exemptions under Sections 11, 12, and other related provisions.
Without registration under 12A, exemption under 10(23C)(iiiae) cannot be claimed.
Compliance after getting registration under Section 12A(a):
File annual income tax returns regularly.
Maintain proper books of accounts and records.
Ensure the income is used for the specified charitable or educational purposes.
Comply with audit requirements as per Income Tax rules.
Submit necessary reports and documents to Income Tax Authorities.
Summary:
Aspect Section 10(23C)(iiiae) Sections 11 & 12
Applicability Educational institutions (limit on receipts) Charitable/religious trusts/institutions
Registration requirement Yes, registration under 12A needed Yes
Approval authority Central Government Commissioner of Income Tax
Conditions Aggregate receipts limit, not for profit Use of income for charitable purposes
Compliance Filing returns, audit, use of income Same
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