University, Educational Institution, Hospital, Medical Institution To Keep And Maintain Books Of Account: CBDT

The CBDT has notified the Income-tax (24th Amendment) Rules, 2022 with a view to tightening the rules regarding the tax exemption for universities, educational institutions, hospitals, and medical institutions.

Sections 10 (23C) and 12(A) of the Income Tax Act allow the tax department to extend tax exemption on income received by the entities, namely every fund, institution, trust, any university, other educational institution, any hospital or medical institution, including voluntary donations.

The books of account include the cash book; ledger; journal; copies of bills, whether machine numbered or otherwise serially numbered; original bills wherever issued to the person; receipts in respect of payments made by the person; and any other book that may be required to be maintained in order to give a true and fair view of the state of the affairs of the person and explain the transactions effected.

The CBDT notified that the books of accounts and other documents may be kept in written form or in electronic form or in digital form or as print-outs of data stored in electronic form or in digital form or any other form of electromagnetic data storage device.

The fund, institution, or trust, or any university or other educational institution, or any hospital or other medical institution, shall keep and maintain the books of account and other documents specified in sub-rule (1) at its registered office.

"Where the assessment in relation to any assessment year has been reopened under section 147 of the Act within the period specified in section 149 of the Act, the books of account and other documents which were kept and maintained at the time of reopening of the assessment shall continue to be so kept and maintained till the assessment so reopened has become final," the CBDT notified.

Notification No. 94/2022

Dated: 10.08.2022

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