The I-T exemption is retroactive from fiscal year 2020-2021 (from June 1, 2020 to March 31, 2021), as well as fiscal years 2021-22 and 2022-23.
The exemption will be extended for the current fiscal year and the following fiscal year. (2024-25). The Central Board of Direct Taxes (CBDT) stated in a notification that the government has notified the Central Board of Secondary Education, Delhi, a Board created by the Central government, under section 10 (46) of the I-T Act and exempted it from paying income tax on specified income.
Examination fees, affiliation fees, sales of text books and publications, registration fees, sports fees, training costs, and other academic revenues are examples of such income.
Also free from income tax would be receipts from CBSE projects/programs, interest on income tax refunds, and interest gained on these specified income.
Om Rajpurohit, Joint Partner (Corporate & International Tax) at AMRG & Associates, stated, "Given that the current notification is made available for a limited period starting retroactively from June 1, 2020 to FY 2024-25, the CBSE may file an application to the CBDT for special permission to amend earlier years' income tax returns and claim a refund for taxes paid on stated income, as the time period for modification of returns has already expired."
The tax exemption is conditional on CBSE not engaging in any commercial activity; activities and the nature of the specified income must stay constant throughout fiscal years, according to the CBDT.
