The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 92/2026 dated July 21, 2026, notifying the District Legal Services Authority (DLSA), Jind for exemption under Section 10(46) of the Income-tax Act, 1961. The notification has been published in the Official Gazette and provides tax exemption on specified categories of income earned by the authority.
The notification assumes significance as it has been issued after the enactment of the Income-tax Act, 2025, which repealed the Income-tax Act, 1961. CBDT clarified that certain provisions of the repealed Act continue to apply to pending proceedings and exemptions relating to periods before April 1, 2026.
Which Income Will Be Exempt?
The exemption applies to specific income earned by the District Legal Services Authority, Jind, including:
- Grants received from the Punjab and Haryana High Court.
- Grants received from the National Legal Services Authority (NALSA).
- Grants received from the Haryana State Legal Services Authority.
- Grants or donations received from the Central Government or the Government of Haryana.
- Amounts received pursuant to court orders.
- Recruitment application fees.
- Interest earned on bank deposits.
Conditions Attached to the Exemption
The tax exemption is subject to compliance with certain conditions. The District Legal Services Authority, Jind must:
- Not engage in any commercial activity.
- Ensure that its activities and the nature of its specified income remain unchanged during the relevant financial years.
- File its income-tax return in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
CBDT has also clarified that failure to comply with these conditions may lead to penal consequences and withdrawal of the exemption granted under Section 10(46).
Retrospective Applicability
The notification has been granted with retrospective effect and will apply to:
| Financial Year | Assessment Year |
|---|---|
| 2022-23 | 2023-24 |
| 2023-24 | 2024-25 |
| 2024-25 | 2025-26 |
| 2025-26 | 2026-27 |
This means the specified income of DLSA, Jind for these years will be eligible for exemption, subject to fulfillment of the prescribed conditions.
Background
Section 10(46) provides income-tax exemption to specified statutory bodies, authorities, boards, trusts and commissions notified by the Central Government. The provision is commonly used to exempt income that arises from carrying out public welfare, regulatory or statutory functions rather than commercial activities.
With this notification, the District Legal Services Authority, Jind joins the list of notified entities whose specified income is exempt from income tax, reinforcing the objective of supporting institutions engaged in providing legal aid and access to justice.
Click here to view/download the official copy of the notification
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