Clarification on exemption u/s 10(23c) of i.t. act

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Vikas (Accountant) 18 July 2017

Dear Members, A client is a Trust registered as Public Charitable Trust. The Trust is running an english medium school recognized by govt. of W.B. Trust doesn't get any donation from outside neither aided with govt. fund. Receipt 100% compromises of fees charged to student. Trust is going to file 1st time Income Tax Return. Q1. Status of Trust? BOI or Firm Q2. Inorder to claim exemption u/s 10(23C), is it necessary to take approval from DG Exemtion in Form 56 ( As gross receipt is less than 1cr.)? Anyone please clarify.

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Dhirajlal Rambhia (KVO Merau Kutchh) 19 July 2017

1. AOP

2. Yes.

"Any educational institution existing solely for educational purposes and not for purposes of profit and approved by the Chief Commissioner or the Director General enjoys exemption under sub-clause (vi) [section 10(23C)].

For this purpose the educational institution has to make an application in Form No.56D as prescribed in Rule 2CA"