**Executive Summary**
This notification, issued by the Central Board of Direct Taxes on January 28, 2026, concerns the exemption of specified income for the 'State Legal Service Authority Union Territory, Chandigarh' under Section 10(46) of the Income-tax Act, 1961. The exemption applies retrospectively from assessment year 2024-25 and is effective until assessment year 2028-29, subject to conditions including not engaging in commercial activity and filing income tax returns.
**Key Points / Main Content**
* **Income Exemption:**
* Grants from the Punjab and Haryana High Court, Central Authority (National Legal Services Authority).
* Grants/donations from the Central/State Governments of Punjab/Haryana.
* Amounts received under court orders.
* Fees received as recruitment application fees.
* Interest earned on bank deposits.
* **Conditions for Exemption:**
* The Authority must not engage in any commercial activity.
* The nature of specified income and activities must remain consistent throughout the financial years.
* The Authority must file income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.
* Failure to comply may lead to penal actions and withdrawal of exemption under Section 10(46) of the Income-tax Act.
* **Applicability Period:**
* Applied for assessment years 2024-25 to 2025-26 (relevant to financial years 2023-24 to 2024-25).
* Applicable for assessment years 2026-27 to 2028-29 (relevant to financial years 2025-26 to 2027-28).
**Impact Analysis**
**State Legal Service Authority Union Territory, Chandigarh**
* **Impact:** Exemption from income tax on specified income, allowing for greater financial flexibility to pursue its objectives.
* **Action Required:** Adhere to all conditions, including not engaging in commercial activity, maintaining consistency in income/activities, and filing income tax returns to maintain the tax exemption.
**Central Board of Direct Taxes (CBDT)/ Income-tax Department**
* **Impact:** Enforcement of the notification's provisions, ensuring compliance by the State Legal Service Authority Union Territory, Chandigarh.
* **Action Required:** Oversee and monitor the State Legal Service Authority Union Territory, Chandigarh's adherence to the stated conditions to ensure eligibility for the tax exemption.
Key Entities Referenced
Income-tax Act, 1961: The primary law governing income tax in India, referenced in the notification for exemptions and filing requirements.
State Legal Service Authority Union Territory, Chandigarh: The specific entity granted an exemption under Section 10 of the Income-tax Act, 1961.
Legal Services Authorities Act, 1987: Act under which the Chandigarh Legal Services Authority is constituted.
Ministry of Finance: The issuing ministry for the notification related to income tax exemption.
2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ग) न्यायालय के आिेिानुसार प्राप्त राजि;
(घ) भती आिेिन िुल्क के रूप म ेंप्राप्त िुल्क; और
(ङ) बैंक िमा राजियों पर अर्िडत ब्याि
2. यह अजधसूचना 'राज्य जिजधक सेिा प्राजधकरण संघ राज्य क्षेत्र, चंडीगढ़' की ितों के अधीन प्रभािी होगी।
(क) दकसी भी िाजणजज्यक गजतजिजध में संलग्न नहीं होगा ;
(ख) गजतजिजधयां तथा जनधाडठरत आय की प्रकृजत परू े िर् ड अपठरिर्ततड रहगे ी; और
(ग) आयकर अजधजनयम, 1961 की धारा 139 की उपधारा (4ग) के खंड (छ) के प्रािधान के अनसु ार आयकर
ठरटनड िाजखल करेगा।
2.1 इन ितों का अनपु ालन न करन े पर आयकर अजधजनयम, 1961 के प्रािधानों के अंतगडत िंडात्मक कारडिाई िुरू की
िा सकती ह ैऔर अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ली िा सकती ह।ै
3. यह अजधसूचना जित्तीय िर्ड 2023-24 स े 2024-25 स े संबंजधत जनधाडरण िर् ड 2024-25 से 2025-26 के जलए
लाग ूमानी िाएगी और जित्तीय िर्ड 2025-26 से 2027-28 स ेसंबंजधत जनधाडरण िर् ड2026-27 से 2028-29 के जलए लागू
होगी।
[अजधसूचना स.ं 15 /2026/फा. स.ं 300196/64/2025-आईटीए-I]
हरिेि ससंह, अिर सजचि
स्ट्पष्टीकरण ज्ञापन
यह प्रमाजणत दकया िाता ह ै दक इस अजधसूचना को भूतलक्षी प्रभाि (बोडड/जिभाग के समक्ष आिेिन करने के िर् ड से) िेन े स े
दकसी भी व्यजि पर प्रजतकूल प्रभाि नहीं पडगे ा।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 28th January, 2026
S.O. 399(E).— In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961
(43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘State Legal Service
Authority Union Territory, Chandigarh (PAN: AAAGS1716A), an Authority constituted by the Administrator, Union
Territory, Chandigarh under the Legal Services Authorities Act, 1987 (Central Act 39 of 1987), in respect of the
following specified income arising to the said Authority, as follows:-
(a) Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal
Services Authority constituted under Legal Services Authorities Act, 1987;
(b) Grants or donation received from the Central Government or the State Government of Punjab/Haryana
for the purpose of the Legal Services Authorities Act, 1987;
(c) Amount received under the order of the Court;[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
(d) Fees received as recruitment application fee; and
(e) Interest earned on bank deposits
2. This notification shall be effective subject to the conditions that ‘State Legal Service Authority Union
Territory, Chandigarh-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years;
and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section
139 of the Income-tax Act, 1961.
2.1 Failure to comply with these conditions may result in the initiation of penal actions under the provisions of
the Income-tax Act, 1961 and withdrawal of the exemption granted u/s 10(46) of the Act.
3. This notification shall be deemed to have been applied for assessment years 2024-25 to 2025-26 relevant for
the financial years 2023-24 to 2024-25 and shall be applicable for assessment year 2026-27 to 2028-29 relevant for
the financial year 2025-26 to 2027-28.
[Notification No. 15 /2026/F. No. 300196/64/2025-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect [from the year of its application
made before the CBDT/ Income-tax Department] to this notification.
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