CBDT Grants Income Tax Exemptions to Legal and Aviation Bodies

The Central Board of Direct Taxes (CBDT) has issued two notifications under Section 10 (46) of the Income-tax Act, 1961, exempting specified income of entities in the legal and aviation sectors from taxation. Notification No. 119/2024 grants income tax exemption to the District Legal Service Authorities (DLSAs) in Haryana, covering grants, donations, court-ordered payments, and interest earned on bank deposits. Notification No. 120/2024 exempts the income of the National Aviation Security Fee Trust (NASFT), including grants, subsidies, aviation security fees, and interest earned on bank deposits. Both entities must refrain from commercial activities and file income tax returns as per Section 139 (4C) (g). The exemptions apply for assessment years 2024-25 to 2028-29 for DLSAs and 2025-26 to 2029-30 for NASFT.