As per Section 10(23C), Any income received by any person on behalf of Certain Funds of National Importance, Educational Institutions and Medical Institutions Exempt from Tax as discussed.
Any income received by any person on behalf of the following is exempt from tax:
(a) The Prime Minister’s National Relief Fund or the Prime Minister’s citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund,) (the words in italics have been inserted by The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, w.e.f. A.Y. 2020-21); or
(b) The Prime Minister’s Fund (Promotion of Folk Art); or
(c) The Prime Minister’s Aid to Students Fund; or
(d) The National Foundation for Communal Harmony; or
(e) The Swachh Bharat Kosh, set up by the Central Government; or
(f) The Clean Ganga Fund, set up by the Central Government; or
(g) The Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory as referred to in sub-clause (iiiht) of clause (a) of sub-section (2) of section 80G; or
(h) Any university or other educational institution existing solely for educational purposes and not for purposes of profit and which is wholly or substantially financed by the Government [Sub-clause (iiiab)]; or
(i) Any hospital or other institution for the reception and treatment of persons (1) suffering from illness or (ii) mental defectiveness or (iii) during convalescence or (iv) requiring medical attention or rehabilitation, existing solely for philanthropic purpose and not for purpose of profit and which is wholly or substantially financed by the Government [Sub-clause (iiiac)]; or
(j) Any university or other education institution existing, solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed 5 crore [Sub-clause (iiiad)]; or
| Income of any university or other educational institution existing solely for educational purposes and not for purposes of profit shall be exempt if the aggregate annual receipts of the person from such university or educational institution do not exceed Rs. 5 Crore. |
(k) Any hospital or other medical institution for the purpose mentioned in clause (h) above where aggregate annual receipts do not exceed Rs. 5 Crore [Sub-clause (iiiae)]; or
However, an Explanation has been inserted under section 10(23C) (iiiae) to clarify that such limit shall be applicable for an assessee with respect to the aggregate receipts from university or universities or educational institution or institutions as referred to in sub-clause (iiiad) as well as from hospital or hospitals or institution or institutions as referred to in sub- clause (iiiae).
Exemption upto Rs. 5 Crore shall be allowed to the person instead of each institution
Income of any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes and not for purposes of profit shall be exempt, if the aggregate annual receipts of the person from such hospital or institution do not exceed Rs. 5 Crore.
(l) Any other fund or institution established for charitable purposes which may be approved by the prescribed authority having regard to its object and its importance throughout India or throughout any State or States [Sub-clause (iv)]; or
(m) Any trust (including any other legal obligation) or institution wholly for public religious purposes or wholly for public religious and charitable purposes which may be approved by the prescribed authority, having regard to the manner in which the affairs of the trust or institution are administered and supervised for ensuring that the income accruing thereto is properly applied for the objects thereof [Sub-clause (v)]; or
(n) Any university or other educational institution existing solely for educational purposes and not for purposes of profit other than those mentioned in clause (g) and (i) above i.e. whose aggregate annual gross receipts exceed Rs. 1 Crore [Sub-clause (vi)]; or
(o) Any hospital or other institution for the purpose mentioned in clause (h) above but other than those mentioned in clause (h) and (j) above i.e. whose aggregate annual receipts exceed Rs. 1 Crore [Sub-clause (via)]
