Taxation aspects of income of colleges, universities

Friends

Anybody of your goodselves have any idea about the taxability or non taxability of income earned by educational institutions like colleges, universities who offer BBA, MBA, Btech, Mtech courses.

Is tax audit applicable if the income of such organisations are tax exempt.

Regards

Dipjyoti

Replies (1)
A college or university is exempt u/s 10 (23) c if it is not for profit and wholly financed by govt or turnover is less than crore or approved by authority. The income of said university or college willbe exempt subject to cond of sec 11, if it doesnot fall under the above category the same will be taxable as per normal provisions of the act. I dont think audit is necessary but shld be claimed in prescribed form.

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