Income Tax Exemption Notified for District Legal Service Authority, Panchkula under Schedule III of Income-tax Act, 2025

Last updated: 13 August 2026

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The District Legal Service Authority, Panchkula has been granted an income tax exemption under Schedule III of the Income-tax Act, 2025. This exemption applies to specific income sources, including grants from various legal authorities and government bodies, court-ordered amounts, recruitment fees, and bank interest. The exemption is effective for the tax year 2026-27, provided the Authority adheres to certain conditions, such as not engaging in commercial activities and filing income tax returns as required.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 11th August, 2026

S.O. 4459(E).— In exercise of the powers conferred by Schedule III [Table: Sl. No. 36] read with section 11 of the Income-tax Act, 2025 (30 of 2025), (hereinafter referred to as the said Act), the Central Government hereby notifies for the purposes of the said clause, ‘District Legal Service Authority, Panchkula’ (PAN: AAAGC0054R), an Authority constituted by the ‘Legal Services Authorities Act, 1987’ (39 of 1987), in respect of the following specified income arising to the said body namely: -

(a) grants received from the Punjab and Haryana High Court, the Central Authority i.e. the National Legal Services Authority and the State Authority i.e., Haryana State Legal Servies Authority for the purpose of the Legal Services Authorities Act, 1987(39 of 1987);
(b) grants or donation received from the Central Government or the State Government of Haryana for the purposes of the Legal Services Authorities Act, 1987(39 of 1987);
(c) amount received under the order of the Court;
(d) fees received as recruitment application fee; and
(e) interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that ‘District Legal Service Authority, Panchkula’(PAN: AAAGC0054R), -
(a) shall not engage in any commercial activity;
(b) shall file return of income in accordance with the provisions of section 263(9)(c)(xiii) of the said Act; and.
(c) activities and the nature of the specified income shall remain unchanged throughout the tax year.

3. Failure to comply with the conditions specified in paragraph 2 shall result in withdrawal of exemption under Schedule III [Table: Sl. No. 36] read with section 11 and initiation of proceedings under the said Act.

4. This notification shall be applicable for the tax year 2026-27.

[Notification No. 113 /2026/F. No. 300196/6/2026-ITA-I]
HARDEV SINGH, Under Secy.

FAQ :

The District Legal Service Authority, Panchkula has received income tax exemption.

The exemption is granted under Schedule III, read with section 11 of the Income-tax Act, 2025.

The exemption covers grants received from the Punjab and Haryana High Court, National Legal Services Authority, Haryana State Legal Services Authority, Central Government, and State Government of Haryana. It also includes amounts received under court order, recruitment application fees, and interest earned on bank deposits.

The District Legal Service Authority, Panchkula must not engage in any commercial activity, must file its return of income as per the Act, and its activities and income nature must remain unchanged throughout the tax year.

This notification is applicable for the tax year 2026-27.

Failure to comply with the specified conditions will result in the withdrawal of the exemption and initiation of proceedings under the Income-tax Act.