Clarification of section 10(23C)


Clarification of section 10(23C)

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Income Tax
Clarification in respect of section 10(23C) of the Act

Clarification in respect of section 10(23C) of the Act [w.e.f. A.Y. 2015-16]

 

 

(i)     after sub-clause (iiiac), the following Explanation shall be inserted, namely:

 

 

"Explanation.—  

 

For  the  purposes  of  sub-clauses  (iiiab)  and  (iiiac),  any  university  or  other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous year, if the Government grant to such university or other educational institution, hospital or other institution exceeds such percentage of the total receipts including any voluntary contributions, as may be prescribed, of such university or other educational institution, hospital or other institution, as the case may be, during the relevant previous year."

 

(ii)    after  the  seventeenth  proviso,  the  following  proviso  and  the  Explanation  shall  be  inserted, namely:

 

Provided also that where the fund or institution referred to in sub-clause (iv) or the trust or institution referred to in sub-clause (v) has been notified by the Central Government or approved by the prescribed authority, as the case may be, or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), has been approved by the prescribed authority, and the notification or the approval is in force for any previous year, then, nothing contained in any other provision of this section [other than clause (1) thereof] shall operate to exclude any income received on behalf of such fund or trust or institution or university or other educational institution or hospital or other medical institution, as the case may be, from the total income of the person in receipt thereof for that previous year.

 

 

Explanation.—

 

In this clause, where any income is required to be applied or accumulated, then, for such purpose the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this clause in the same or any other previous year;


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