The Ministry of Finance has notified income-tax exemptions for the District Legal Services Authorities (DLSAs) in Haryana under Section 10(46) of the Income-tax Act, 1961. The notification, issued by the Central Board of Direct Taxes (CBDT), provides tax exemption for specific categories of income earned by these statutory bodies.
The DLSAs covered under this notification include the authorities in Gurgaon (PAN: AAAGD0052Q) and Mewat (PAN: AAAGD0111N). These bodies, constituted under Section 9(1) of the Legal Services Authorities Act, 1987, aim to provide free and competent legal services to the weaker sections of society.
Tax-Exempt Income Categories
As per Notification No. 115/2025, the following income sources of the DLSAs will be exempt from income tax:
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Grants received from:
- Punjab and Haryana High Court
- National Legal Services Authority (NALSA)
- Haryana State Legal Services Authority (HSLSA)
- Grants or donations from the Central or State Government
- Amounts received under court orders
- Application fees for recruitment
- Interest accrued on bank deposits
Conditions for Exemption
To qualify for the exemption, the DLSAs must adhere to the following conditions:
- They must not engage in any commercial activity.
- The nature of their income and activities must remain consistent across financial years.
- They are required to file income tax returns under Section 139(4C)(g) of the Income-tax Act.
Applicability
The exemption is retrospectively effective from Assessment Year (AY) 2024-25 and will remain applicable for AYs 2025-26 to 2028-29. The explanatory memorandum assures that the retrospective application does not adversely impact any taxpayer.
Expert View
Legal and tax experts have welcomed the move, stating that it strengthens the legal aid framework by enabling DLSAs to utilize their funds fully without the burden of income tax. "It's a step in the right direction toward ensuring that access to justice is not hindered by financial constraints," said a senior official from the Haryana State Legal Services Authority.
Official copy of the notification has been attached
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