The Central Board of Direct Taxes (CBDT ), vide notification no. 15/2024 dated January 23, 2024 has notified the income tax exemption to the “State Legal Service Authority Union Territory Chandigarh” under section 10(46) of the Income-tax Act, 1961.

The following income are exempted from the income tax: Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority constituted under Legal Services Authorities Act, 1987; Grants or donation received from the Central Government or the State Government of Punjab/Haryana for the purpose of the Legal Services Authorities Act, 1987;

Amount received under the order of the court; Fees received as recruitment application fee; and Interest earned on bank deposits. However, this notification shall be effective subject to the conditions that State Legal Service Authority Union Territory Chandigarh – shall not engage in any commercial activity; activities and the nature of the specified income shall remain unchanged throughout the financial years; and shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to have been applied for assessment years 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.