The Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, has issued Notification No. 15/2026 dated 28th January 2026 granting exemption under Section 10(46) of the Income-tax Act, 1961 to the State Legal Services Authority, Union Territory, Chandigarh (PAN: AAAGS1716A). This Authority has been constituted by the Administrator of the UT under the Legal Services Authorities Act, 1987.
Specified Incomes Exempted
As per the notification, the following categories of income of the Authority are exempt:
- Grants received from the Punjab & Haryana High Court and the National Legal Services Authority (NALSA).
- Grants or donations received from the Central Government or the State Governments of Punjab/Haryana for purposes of the Legal Services Authorities Act, 1987.
- Amounts received under orders of Courts.
- Fees collected as recruitment application fees.
- Interest earned on bank deposits.
Conditions for Exemption
The exemption shall remain effective only if the Authority:
- Does not engage in any commercial activity.
- Ensures that its activities and the nature of its specified income remain unchanged during the relevant financial years.
- Files its income-tax return in accordance with clause (g) of sub-section (4C) of section 139 of the Act.
CBDT has clarified that non-compliance with these conditions may attract penal action under the Income-tax Act and withdrawal of the exemption granted.
Period of Applicability
The notification shall apply:
- Retrospectively for Assessment Years 2024-25 to 2025-26, relevant to Financial Years 2023-24 to 2024-25; and
- For Assessment Years 2026-27 to 2028-29, relevant to Financial Years 2025-26 to 2027-28.
The explanatory memorandum states that giving this notification retrospective effect does not adversely affect any person.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/CBDT-NN-15-2026.pdf
