Gujarat HC rules Admission Fee Paid to Educational Trust is Corpus Donation, allows Exemption u/s 11(1)(d) of Income

In a recent ruling, the Gujarat High Court held that admission fees paid to an educational trust constitute a corpus donation, qualifying for exemption under Section 11(1)(d) of the Income Tax Act. The court emphasized that such payments were akin to a capital contribution and not income. The decision clarifies that funds contributed directly to the corpus of an educational institution, which are not utilized for its day-to-day expenses, fall under the exemption. This judgment sets a precedent for educational institutions seeking clarity on the tax treatment of donations towards their corpus funds.