Section 10(23C) Approval
For eligible Educational & Medical Institutions | BDPS Associates
What is Section 10(23C)?
Under the Income-tax Act, 1961, section 10(23C) was the familiar exemption route for specified funds/institutions and eligible universities, educational institutions, hospitals and medical institutions. The Income-tax Act, 2025, effective from 1 April 2026, consolidates the non-profit regime under revised section and form numbers. Current-law classification must be checked before filing.
Who may be eligible?
- University, school, college or other educational institution
- Hospital or other medical institution
- Specified charitable fund or institution covered by the applicable provision
- The institution must exist for eligible purposes and not for profit
- Income, assets and transactions must comply with prescribed conditions
When to apply?
- New institution with activities not commenced: seek provisional registration/approval under the current route.
- Institution with commenced activities: apply for regular registration/approval during the applicable period.
- After provisional approval and commencement: apply within six months of commencement.
- Before expiry: generally apply at least six months in advance.
- Apply before claiming exemption for a period not covered by a valid order.
Documents checklist
- Trust deed/MOA, rules and registration certificate
- Organisation PAN and office-bearer KYC
- Education/medical recognition, affiliation, licence or approval documents
- Registered-office and premises evidence
- Accounts, audit reports, ITRs and bank statements
- Activity report and supporting photographs
- Fee structure, student/patient statistics and scholarship/concession details
- Grant, donation and corpus-fund details
- Existing tax approval/rejection orders
- DSC/EVC of authorised signatory
Key compliance points
- Apply income only for permitted institutional objects.
- Maintain separate, complete books and documentary evidence.
- Avoid prohibited benefits to specified persons.
- File return and audit report in the applicable form and within time.
- Review investments, accumulations, related-party transactions and approval validity annually.
Section 10(23C) म्हणजे काय?
Income-tax Act, 1961 अंतर्गत eligible educational/medical institutions आणि काही specified funds साठी हा परिचित exemption route होता. 1 एप्रिल 2026 पासून Income-tax Act, 2025 ने NPO provisions ची section/form numbering बदलली आहे. Filing पूर्वी current classification तपासणे आवश्यक आहे.
कोण पात्र असू शकते?
- University, school, college किंवा educational institution
- Hospital किंवा medical institution
- Applicable provision मधील specified charitable fund/institution
- संस्था eligible purpose साठी असावी, profit साठी नसावी
- Income, assets आणि transactions prescribed conditions नुसार असावेत
अर्ज कधी करावा?
- Activities सुरू नसलेल्या नवीन संस्थेसाठी provisional approval.
- Activities सुरू असतील तर applicable period मध्ये regular approval.
- Provisional approval नंतर activities सुरू झाल्यापासून सहा महिन्यांच्या आत.
- Validity संपण्यापूर्वी साधारण किमान सहा महिने.
- Valid approval नसलेल्या period साठी exemption claim करण्यापूर्वी.
आवश्यक कागदपत्रे
- Trust deed/MOA, rules व registration certificate
- Organisation PAN व office-bearer KYC
- Education/medical recognition, affiliation, licence किंवा approval
- Office व premises proof
- Accounts, audit reports, ITRs आणि bank statements
- Activity report व photographs
- Fee structure, student/patient statistics व concessions
- Grant, donation आणि corpus details
- Existing approval/rejection orders
- Authorised signatory चे DSC/EVC
मुख्य compliance
- Income फक्त approved institutional objects साठी वापरणे.
- पूर्ण books आणि supporting documents ठेवणे.
- Specified persons ना prohibited benefit टाळणे.
- Applicable return व audit report वेळेत दाखल करणे.
- Investments, accumulation, related parties आणि validity दरवर्षी तपासणे.
Disclaimer: The applicable route depends on the institution, receipts, activities and current law. This post does not constitute a tax opinion.