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:
- The DLSAs must not engage in any commercial activities.
- The nature of activities and income must remain unchanged throughout the financial years.
- 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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