Purpose:
This section provides a full tax exemption on income earned by approved news agencies that operate for the collection and distribution of news, provided they meet certain conditions.
Key Conditions for Exemption:
✅ Must be an Indian news agency (not foreign).
✅ Must be approved by the Central Government (Ministry of Information & Broadcasting).
✅ Income must be solely from news collection/distribution (not from advertisements or other commercial activities).
✅ Must apply income only towards its objectives (not for private profit).
Example 1: Income from News Subscription Fees
- News Agency:“Bharat News Network” (Govt-approved).
- Income Sources:
- Subscription fees from newspapers: ₹2 Crores
- Grants from government for public interest news: ₹50 Lakhs
- Total Income:₹2.5 Crores
- Taxable Income:₹0 (Fully exempt under Section 10(22B))
Example 2: Income from Advertisements (Not Exempt)
- News Agency:“India Press Service” (Approved).
- Income Sources:
- News syndication fees: ₹1 Crore (Exempt)
- Advertisement revenue: ₹75 Lakhs (Commercial income)
- Exempt Income (News services):₹1 Crore
- Taxable Income (Ads):₹75 Lakhs (Taxable as business income)
Example 3: Foreign News Agency (Not Exempt)
- News Agency:“Global News Wire” (Foreign-based).
- Income in India:₹5 Crores (from Indian media subscriptions).
- Taxable Income:₹5 Crores (Not exempt, as Section 10(22B) applies only to Indian agencies).
