Section 10(23BBH) of the Income Tax Act provides a complete tax exemption for the income of Prasar Bharati (Broadcasting Corporation of India).
Key Features:
- Eligible Entity: Prasar Bharati, established under Section 3(1) of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990.
- Nature of Income: All income—whether from grants, interest, licensing fees, or other sources—is fully exempt from income tax.
- Purpose: This exemption supports Prasar Bharati’s role as India’s public service broadcaster, enabling it to operate without tax liabilities.
Example:
Suppose Prasar Bharati earns ₹200 crore in a financial year from:
- Government grants,
- Licensing fees from private broadcasters,
- Interest on deposits.
Since it qualifies under Section 10(23BBH), the entire ₹200 crore is exempt from income tax, allowing the organization to reinvest in public broadcasting services without erosion from taxation.
Additionally, as per CBDT Circular No. 18/2017, no TDS is required on payments made to Prasar Bharati, since its income is unconditionally exempt and it is not required to file returns under Section 139.