Taxability of income of veterinary council of india
This query is : Resolved
06 September 2014
I want to know whether the income of Veterinary Council of India is taxable or not. If exempted then please tell me the section under which it is exempted.
The details about the council is as under:
Indian Veterinary Council Act, 1984 (52 of 1984) was enacted in 1984 and was published in the Extraordinary Gazette of India dated 21st August, 1984 to regulate veterinary practice and to provide for that purpose, for the establishment of Veterinary Council of India and State Veterinary Councils and the maintenance of Registers of veterinary practitioners and for matters connected therewith.
Subsequent to enactment of the Indian Veterinary Council Act, 1984, the Central Government (Ministry of Agriculture) vide Gazette Notification dated 2nd August, 1989 for the first time constituted the Veterinary Council of India by nominating the Members as per the provisions of section 4 read with section 3 of the Act. Further, nominations were made by the Central Government from time to time to fill up the vacancies. The first election of Members to the Council under Section 3(3)(g) of the Act was conducted by the Central Government in 1999 and thereafter in 2003 & 2006.
The Veterinary Council of India is a body corporate and consists of 27 Members (14 nominated, 11 elected & 2 ex-officio).
Since its inception, the Council has been receiving 100% grants-in-aid from the Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India under a Plan Scheme namely "Professional Efficiency Development" for undertaking the activities of the Council.
The office of the Council has 22 posts as approved/created by the Department of Animal Husbandry & Dairying.
The Indian Veterinary Council Act, 1984 extended, in the first instance, to the whole of the States of Haryana, Bihar, Orissa, Himachal Pradesh and Rajasthan and to all the Union Territories. Subsequently, different States have adopted the provisions of the Act and as on today the Act stands extended to all the States and UTs except Jammu and Kashmir.
After the enactment of the Act, State/UT Veterinary Councils have been established over a period of time. As on today, 25 State/UT Veterinary Councils have been established as per provisions of the Indian Veterinary Council Act, 1984.
As per the provisions of section 62 of the Indian Veterinary Council Act, 1984, the Accounts of the Council are to be audited by the Comptroller and Auditor General of India or any person appointed by him in this behalf. Accordingly, the accounts of the Council are audited by the representatives of the Principal Director of Audit, Economic and Service Ministries, Government of India every year. The Audited Accounts along with Audit Certificate and Annual Report of the Council are submitted to the Central Government for laying them on Table of both the Houses of Parliament.
For further details about the assessee you can find it at http://www.vci.nic.in/forms/Default.aspx
The details about the council is as under:
Indian Veterinary Council Act, 1984 (52 of 1984) was enacted in 1984 and was published in the Extraordinary Gazette of India dated 21st August, 1984 to regulate veterinary practice and to provide for that purpose, for the establishment of Veterinary Council of India and State Veterinary Councils and the maintenance of Registers of veterinary practitioners and for matters connected therewith.
Subsequent to enactment of the Indian Veterinary Council Act, 1984, the Central Government (Ministry of Agriculture) vide Gazette Notification dated 2nd August, 1989 for the first time constituted the Veterinary Council of India by nominating the Members as per the provisions of section 4 read with section 3 of the Act. Further, nominations were made by the Central Government from time to time to fill up the vacancies. The first election of Members to the Council under Section 3(3)(g) of the Act was conducted by the Central Government in 1999 and thereafter in 2003 & 2006.
The Veterinary Council of India is a body corporate and consists of 27 Members (14 nominated, 11 elected & 2 ex-officio).
Since its inception, the Council has been receiving 100% grants-in-aid from the Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India under a Plan Scheme namely "Professional Efficiency Development" for undertaking the activities of the Council.
The office of the Council has 22 posts as approved/created by the Department of Animal Husbandry & Dairying.
The Indian Veterinary Council Act, 1984 extended, in the first instance, to the whole of the States of Haryana, Bihar, Orissa, Himachal Pradesh and Rajasthan and to all the Union Territories. Subsequently, different States have adopted the provisions of the Act and as on today the Act stands extended to all the States and UTs except Jammu and Kashmir.
After the enactment of the Act, State/UT Veterinary Councils have been established over a period of time. As on today, 25 State/UT Veterinary Councils have been established as per provisions of the Indian Veterinary Council Act, 1984.
As per the provisions of section 62 of the Indian Veterinary Council Act, 1984, the Accounts of the Council are to be audited by the Comptroller and Auditor General of India or any person appointed by him in this behalf. Accordingly, the accounts of the Council are audited by the representatives of the Principal Director of Audit, Economic and Service Ministries, Government of India every year. The Audited Accounts along with Audit Certificate and Annual Report of the Council are submitted to the Central Government for laying them on Table of both the Houses of Parliament.
For further details about the assessee you can find it at http://www.vci.nic.in/forms/Default.aspx
09 September 2014
Nobody is there in this group to answer this.
26 July 2025
Thanks for the detailed information about the Veterinary Council of India (VCI). Based on what you’ve shared, here’s the analysis regarding the **taxability of its income**:
---
### Key Points:
* VCI is established by **Indian Veterinary Council Act, 1984** — a Central Act.
* It is a **body corporate** with government nominations and elections.
* Receives **100% grants-in-aid** from the Central Government (Ministry of Agriculture).
* Its accounts are audited by the **Comptroller and Auditor General of India (CAG)**.
* Reports are submitted to Parliament.
* Performs a **public/regulatory function** under a statute.
---
### Tax Treatment:
Under the Income Tax Act, **Section 10(23AA)** provides exemption to income of certain entities:
> **Section 10(23AA):**
> “Any income of any fund or institution\*\*:
>
> * Established by or under a Central, State or Provincial Act,
> * Which is wholly or substantially financed by the Government,
> * And which fulfils conditions prescribed,
> Shall be exempt from income tax.”
Since VCI:
* Is established under a Central Act (Indian Veterinary Council Act, 1984),
* Is substantially financed by the Central Government (100% grants-in-aid),
* Is audited by CAG and reports to the government,
it qualifies for exemption under **Section 10(23AA)**.
---
### Supporting judicial position & practice:
* Similar statutory bodies established by Central/State Acts and substantially financed by government are exempt under 10(23AA).
* VCI’s nature as a **statutory regulatory body** and its funding pattern support exemption.
* No commercial/business activities are indicated; if any business activities exist, taxability depends on incidental nature and application of income.
---
### Summary:
| Factor | Applicability to VCI |
| ------------------------------- | ----------------------------------------- |
| Established under Central Act | Yes (Indian Veterinary Council Act, 1984) |
| Substantially Government funded | Yes (100% grants-in-aid) |
| Audited by CAG | Yes |
| Reports to Parliament | Yes |
| Tax exemption under IT Act | **Section 10(23AA)** |
---
### Conclusion:
**Income of Veterinary Council of India is exempt from income tax under Section 10(23AA) of the Income Tax Act.**
---
If you need, I can help draft a formal opinion or find specific case laws for further backing. Would you like that?
---
### Key Points:
* VCI is established by **Indian Veterinary Council Act, 1984** — a Central Act.
* It is a **body corporate** with government nominations and elections.
* Receives **100% grants-in-aid** from the Central Government (Ministry of Agriculture).
* Its accounts are audited by the **Comptroller and Auditor General of India (CAG)**.
* Reports are submitted to Parliament.
* Performs a **public/regulatory function** under a statute.
---
### Tax Treatment:
Under the Income Tax Act, **Section 10(23AA)** provides exemption to income of certain entities:
> **Section 10(23AA):**
> “Any income of any fund or institution\*\*:
>
> * Established by or under a Central, State or Provincial Act,
> * Which is wholly or substantially financed by the Government,
> * And which fulfils conditions prescribed,
> Shall be exempt from income tax.”
Since VCI:
* Is established under a Central Act (Indian Veterinary Council Act, 1984),
* Is substantially financed by the Central Government (100% grants-in-aid),
* Is audited by CAG and reports to the government,
it qualifies for exemption under **Section 10(23AA)**.
---
### Supporting judicial position & practice:
* Similar statutory bodies established by Central/State Acts and substantially financed by government are exempt under 10(23AA).
* VCI’s nature as a **statutory regulatory body** and its funding pattern support exemption.
* No commercial/business activities are indicated; if any business activities exist, taxability depends on incidental nature and application of income.
---
### Summary:
| Factor | Applicability to VCI |
| ------------------------------- | ----------------------------------------- |
| Established under Central Act | Yes (Indian Veterinary Council Act, 1984) |
| Substantially Government funded | Yes (100% grants-in-aid) |
| Audited by CAG | Yes |
| Reports to Parliament | Yes |
| Tax exemption under IT Act | **Section 10(23AA)** |
---
### Conclusion:
**Income of Veterinary Council of India is exempt from income tax under Section 10(23AA) of the Income Tax Act.**
---
If you need, I can help draft a formal opinion or find specific case laws for further backing. Would you like that?
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