MUMBAI: The Revenue-Tax Appellate Tribunal has lately held that grant of loan-scholarships by JN Tata Endowment for increased schooling of Indian college students abroad is not going to debar it from income-tax (I-T) exemption.
The belief, which was established in 1892 by Tata Group founder J N Tata, awards merit-based mortgage scholarships to college students throughout India for increased research abroad.Yearly, 90 to 100 students are chosen throughout disciplines starting from the sciences (utilized, pure and social) to administration, legislation, commerce and the high quality arts.
In keeping with JNTE’s web site, chosen college students enter right into a authorized settlement with the inspiration. The loan-scholarship settlement is for seven years and the scholar is required to repay the complete quantity in 5 equal instalments between the third and seventh 12 months. JNTE has a corpus of Rs 200 crore.
For FY11, JNTE had filed an I-T return declaring a 0 revenue, owing to its tax exempt standing. Nonetheless, the I-T officer had held that ‘software of revenue’ and ‘charitable objective’ ought to each be confined to India.
In keeping with the I-T officer, mere cost to an Indian scholar in India was not adequate for the aim of exemption, because the schooling itself (which denotes software of revenue) was availed outdoors India.
In his evaluation order, the I-T officer had added that – “If there’s a charitable objective, schooling (on this case), which tends to advertise worldwide welfare by which India is , an order from the Central Board of Direct Taxes is required…” for the aim of claiming the tax exemption.
On these grounds, he held that the loan-scholarship quantity of Rs 4 crore given to college students for schooling overseas is not going to be exempt. Penalty proceedings for submitting inaccurate particulars of revenue had been individually initiated.
When the Commissioner (Appeals) dominated in favour of JNTE, the I-T officer filed an attraction with the ITAT. The tax tribunal dominated in favour of JNTE, holding that the schooling grant given to Indian college students, in India, for increased schooling overseas fulfils circumstances of software of cash for such objective in India. Tata Trusts, of which JNTE is a component, declined to remark.
The belief, which was established in 1892 by Tata Group founder J N Tata, awards merit-based mortgage scholarships to college students throughout India for increased research abroad.Yearly, 90 to 100 students are chosen throughout disciplines starting from the sciences (utilized, pure and social) to administration, legislation, commerce and the high quality arts.
In keeping with JNTE’s web site, chosen college students enter right into a authorized settlement with the inspiration. The loan-scholarship settlement is for seven years and the scholar is required to repay the complete quantity in 5 equal instalments between the third and seventh 12 months. JNTE has a corpus of Rs 200 crore.
For FY11, JNTE had filed an I-T return declaring a 0 revenue, owing to its tax exempt standing. Nonetheless, the I-T officer had held that ‘software of revenue’ and ‘charitable objective’ ought to each be confined to India.
In keeping with the I-T officer, mere cost to an Indian scholar in India was not adequate for the aim of exemption, because the schooling itself (which denotes software of revenue) was availed outdoors India.
In his evaluation order, the I-T officer had added that – “If there’s a charitable objective, schooling (on this case), which tends to advertise worldwide welfare by which India is , an order from the Central Board of Direct Taxes is required…” for the aim of claiming the tax exemption.
On these grounds, he held that the loan-scholarship quantity of Rs 4 crore given to college students for schooling overseas is not going to be exempt. Penalty proceedings for submitting inaccurate particulars of revenue had been individually initiated.
When the Commissioner (Appeals) dominated in favour of JNTE, the I-T officer filed an attraction with the ITAT. The tax tribunal dominated in favour of JNTE, holding that the schooling grant given to Indian college students, in India, for increased schooling overseas fulfils circumstances of software of cash for such objective in India. Tata Trusts, of which JNTE is a component, declined to remark.
