SC RIDERS ON TAX REBATE FOR FOREIGN INSTITUTES
The Supreme Court has said that ‘non-profit’ foreign educational institutions having branch offices in
India can claim tax exemption only if they impart education in India. The ‘non-profit’ tag of such institutions has to be tested against India activities and not the calculation of income over expenditure to decide whether they are qualified to be such organization for tax exemption, the apex court said in a ruling. The bench decided that “If the applicant wants exemption under Section 10(23C)(vi) (Income Tax Act, 1961) it has to impart education in India and only then it would be entitled to claim initial approval under that section.”
India can claim tax exemption only if they impart education in India. The ‘non-profit’ tag of such institutions has to be tested against India activities and not the calculation of income over expenditure to decide whether they are qualified to be such organization for tax exemption, the apex court said in a ruling. The bench decided that “If the applicant wants exemption under Section 10(23C)(vi) (Income Tax Act, 1961) it has to impart education in India and only then it would be entitled to claim initial approval under that section.”
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