Form 23c: Fill & Download for Free

They enjoy exemption granted under Section 10 subject to certain conditions.The exemption of private educational institutions from income-tax is determined by the aggregate annual receipts of the university/educational institution.(i) Private Educational Institutions with annual receipts up to Rs. 1 crore{Section 10(23C)(iiiad) of the Income Tax Act, 1961 (“Act”) read with Rule 2BC of the Income Tax Rules, 1962 (“Rules”)}The income earned by any private university or educational institution existing solely for educational purposes and not for profit shall be exempt from income-tax if the aggregate annual receipts of such university or educational institution do not exceed Rs. 1 crore.Thus, an educational institution having receipts up to Rs. 1 crore can claim a full exemption from income-tax by virtue of section 10(23C)(iiiad).(ii) Private Educational Institutions with annual receipts exceeding Rs. 1 crore{Section 10(23C)(vi) of the Act}The income earned by any private university or other educational institution existing solely for educational purposes and not for profit, having their aggregate annual receipts above Rs. 1 crore, shall be exempt from income-tax if they are approved by the prescribed income-tax authority i.e., Commissioner of Income Tax (Exemptions).Thus, where the aggregate receipts of the private education institution exceed Rs. 1 crore, such institution needs a separate approval from the competent income-tax authority, for claiming the exemption u/s 10(23C). Once the approval u/s 10(23C)(vi) is granted, it is applicable indefinitely unless it is rescinded by the competent authority.Conditions for Exemption from Income-tax of a Private Educational Institution having aggregate Annual Receipts above Rs. 1 croreThe third proviso to section 10(23C) stipulates the undermentioned two conditions to be fulfilled by private educational institutes having aggregate annual receipts over Rs. 1 crore to qualify for exemption from income-tax:(i) Apply at least 85% of total income solely for educational objectives: The educational institution shall apply (spend) its income wholly and exclusively to the objects for which it is established. Further, the institution shall apply at least 85% of the income every year. Thus, just registration u/s 10(23C) by itself does not result in the full exemption. The institution has to spend at least 85% of total income to claim full exemption. It is pertinent to note here that the educational institution is allowed to retain up to 15% of total income without any conditions.Interestingly, an educational institution is required to apply at least 85% of its total receipts including corpus donations, if any, towards its educational objectives. Therefore, unlike charitable trusts u/s 11, in the case of educational institutions, even their corpus donations are not immune from application towards the educational objectives.(ii) Investments: The second condition is that the institution shall invest its money only in the modes specified u/s 11(5) of the Act.(iii) Other Conditions:(a) Income Tax Return: Under section 139(4C) every educational institution referred to in sub-clause (iiiad) or sub-clause (vi) of Section 10(23C) whose total income, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax i.e., Rs. 2,50,000/- shall furnish a return of income. The Form of ITR is ITR-7, the same as a Section 12AA registered Trust.(b) Audit: Proviso 10 to section 10(23C) provides that where the total income of the institution, without giving effect to the provisions of this section, exceeds the maximum amount which is not chargeable to tax in any previous year, such institution shall get its accounts audited and furnish the same along with the return of income.(c) Restrictions on Corpus Donations to other Trusts: Proviso 12 to the section 10(23C) further provides that any amount credited or paid out of income of any university or educational institution to any trust or institution registered under section 12AA, being a corpus donation shall not be treated as application of income to the objects for which such university or educational institution is established.(d) Other Provisions: Applicability of other provisions like deduction of tax at source (TDS) on expenses are fully applicable to an educational institution. Therefore, an educational institution is required to deduct tax from payments, wherever required, to claim the amount as the application of income.DM for other queries.

25c?! Are you trying to cook me?! If you’re going to trap me in here forever please turn it down to 23C. Also, may I have a PC and internet service?If I do nothing the two million pounds of mercury will eventually kill me. Mercury’s metallic form is reasonably safe, but it has a high enough vapor pressure that there will be a toxic amount of Mercury vapor in the air. Long exposure to these will cause mercury poisoning, flu-like symptoms, neurological effects, and/or death.The good news is that I can dramatically reduce the amount of vapor in the air by floating a layer of water on top of the mercury. This help trap the vapors and will reduce the amount released into the room. If I have decent ventilation I’ll go crazy from boredom long before I die from mercury poisoning*.* Perhaps I could keep myself busy by flushing mercury down the toilet or rigging a siphon to drain the pool?

Sec 10(23C) and Sec 11 act on different planes. Sec10(23C) relates to establishment of institutions for a specific purpose and some provisions of Sec 11 are made applicable. But Sec 11 is mainly for creation of ENDOWMENT ORAL OR BY WRITTEN INSTRUMENT for general charitable purpose and religious purpose. General charitable purpose will not include religious prupose and religious purpose will not include general charitable purposes. Thus the writer of an instrument or creator of Endowment should carefully determine whether it is for RELIGIOUS OR CHARITABLE PURPOSE but cannot mix both. The main elements of SEC11 are there should be an asset created or settled for discharging the objectives of the endowment which may be deposit property or even busienss undertaking. The instrument should provide for getting voluntary constributions and if the instruments provide for making contributions as CORPUS the such contributions are outside the scope of reckoning as income. SEc11 deals with only income earned from property held by the trust and voluntary conributions not forming part of the CORPUS. However SEC 10(23C) AND SEC 11 always overlap. It is the sincerty of the person who creates the institution to go for SEC 10(23C) OR SEC 11