Income Tax Exemption Granted to District Legal Services Authority, Karnal Under Section 10(46) — CBDT Notification No. 28/2026

Overview of the Notification

The Central Board of Direct Taxes (CBDT) has issued Notification No. 28/2026, dated 24th March 2026, extending income tax exemption benefits to the District Legal Services Authority, Karnal under Section 10(46) of the Income-tax Act, 1961. This development is significant for statutory bodies engaged in legal aid and access-to-justice functions across India, particularly those operating under the framework of the Legal Services Authorities Act, 1987.

The District Legal Services Authority, Karnal, bearing PAN AAALC0999G, was constituted by the Government of Haryana under sub-section (1) of section 9 of the Legal Services Authorities Act, 1987 (Central Act No. 39 of 1987) for every district within the State of Haryana. This notification brings formal recognition of the authority's tax-exempt status across multiple assessment years, providing both retrospective and prospective coverage.

Section 10(46) of the Income-tax Act, 1961 empowers the Central Government to notify statutory bodies, authorities, boards, or commissions established under any Central or State legislation, thereby exempting their specified income from tax liability. The intent behind this provision is to ensure that bodies performing public interest functions — particularly those that receive grants and operate without any commercial motive — are not burdened by income tax obligations that could divert public funds away from their core mandate.

For a body to qualify under Section 10(46), it must:

  • Be a statutory entity constituted under Central or State law
  • Derive income from specified sources as notified by the Central Government
  • Refrain from engaging in commercial activities
  • Comply with return-filing obligations under the Income-tax Act, 1961

The District Legal Services Authority, Karnal satisfies all these qualifying conditions, and the CBDT's notification formally recognises this status.

Specified Income Eligible for Exemption

The notification delineates the categories of income received by the District Legal Services Authority, Karnal that qualify for exemption under Section 10(46). These are as follows:

Grants received from the Punjab and Haryana High Court, the Central Authority (i.e., the National Legal Services Authority), and the State Authority (i.e., the Haryana State Legal Services Authority) — provided such grants are directed towards fulfilling the purposes of the Legal Services Authorities Act, 1987 — are covered under the exemption.

(b) Government Grants and Donations

Any grants or donations received from either the Central Government or the State Government of Haryana, specifically for carrying out the objectives of the Legal Services Authorities Act, 1987, are included within the ambit of exemption.

(c) Court-Directed Receipts