CBDT Notifies Income Tax Exemption To District Legal Service Authorities in Haryana

The Central Borad of Direct Taxes (CBDT) has granted income tax exemption to District Legal Service Authorities (DLSAs) in the state of Haryana under Section 10(46) of the Income-tax Act, 1961. 

The notification applies retrospectively from the assessment year 2024–25 and will remain applicable until the assessment year 2028–29.

According to the notification, the specified class of income for which the exemption is granted includes:

• Grants from the Punjab and Haryana High Court, National Legal Services Authority (NALSA), and Haryana State Legal Services Authority.
• Donations or grants received from the Central or State Government.
• Amounts received under court orders.
• Recruitment application fees.
• Interest income from bank deposits.

However, the exemption is subject to strict conditions:

1. The DLSAs must not engage in any commercial activities.
2. The nature of activities and income must remain unchanged throughout the financial years.
3. The entities must file income tax returns under clause (g) of sub-section (4C) of section 139 of the Act.

The notification currently covers the DLSAs in Gurgaon and Mewat , and by implication, it is expected to apply to all district-level legal authorities established under Section 9(1) of the Legal Services Authorities Act, 1987, in Haryana.

The accompanying explanatory memorandum confirms that the retrospective application of this notification will not adversely affect any person.

Notification Details

Notification No. 115/2025

Date: 14th July, 2025

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Amit Sharma

Amit Sharma is the Content Editor at JurisHour. He has been writing about the Indian legal market. He has covered tax & company litigation stories from the Supreme Court, High Courts and Various Tribunals. Amit graduated from MLSU Law College with B.A.LL.B. and also holds an LL.M. from MLSU, Udaipur, Rajasthan. An Advocate in Taxation, and practised in Tribunals as well as Rajasthan High Court and pursued Masters in Constitutional Law. He started out small with little resources but a big plan to take tax legal education to the remotest locations across India and eventually to the world. His vision is to make tax related legal developments accessible to the masses.