Tax Deduvtion for Educational Institutions
Tax Deduvtion for Educational Institutions such as schools, colleges, universities, and professional schools in India can avail certain tax deductions while filing their income tax returns (ITR).
Here’s an explanation of the available tax deductions:
◘ Section 10(23C):
Educational institutions can claim tax exemption under Section 10(23C) of the Income Tax Act, 1961.
This section provides exemption for the income derived from education activities carried out by the institution. It covers both school-level education and higher education institutions.
◘ Section 80G:
If the educational institution is involved in charitable activities, it can apply for registration under Section 80G of the Income Tax Act.
This allows donors to claim deductions on donations made to the institution. Donors can avail deductions up to 50% of the donated amount, subject to certain limits and conditions.
◘ Section 35(1)(ii):
For universities, colleges, or institutions that are engaged in scientific research and development, Section 35(1)(ii) allows for tax deduction on expenses incurred for scientific research.
This deduction covers revenue expenditure related to scientific research, including salaries of researchers, equipment expenses, and overhead costs.
So, educational institutions can benefit from these tax deductions by ensuring they meet the criteria set out in the respective sections of the Income Tax Act.
To visit: https://www.incometax.gov.in
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