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Ministry of finance exempts MSPC from income tax on fees, subscriptions and interest income
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Our Bureau, New Delhi
September 06 , 2025
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The Union ministry of finance has issued a notification providing exemption to the Maharashtra State Pharmacy Council (MSPC) from income tax for fees and subscriptions and interest income, subject to conditions, for five financial years from 2018-19 to 2022-23.
The Central Board of Direct Taxes, in a notification issued on September 2, 2025, announced the decision under powers conferred by clause (46) of Section 10 of the Income Tax Act, 1961.
The exemption has been allowed for MSPC, a body constituted by the Government of Maharashtra, in respect of two specified incomes arising to the council, which are fees and subscriptions and interest income, for five financial years from 2018 to 2022-23.
The section 10 of Income Tax Act consists of various clauses under which certain income do not form part of total income, while computing the total income of a previous year. Clause (46), under the section, exempts any specified income arising to a body or authority or Board or Trust or Commission, which has been established by or under a Central, State or Provincial Act, or constituted by the Central government or a state government, with the object of regulating or administering any activity for the benefit of the general public.
The exemption has been provided subject to the conditions that the Council "shall not engage in any commercial activity", and "activities and the nature of the specified income shall remain unchanged throughout the financial years."
Another condition is that the Council shall file return of income in accordance with the relevant provision of the Income-tax Act, 1961.
"This notification shall be deemed to have been applied for financial years 2018-19, 2019-20, 2020-21, 2021-2022, 2022-23 relevant to assessment year 2019-20, 2020-21, 2021-2022, 2022-23, 2023-24," it added.
The Board certified that no person is being adversely affected by giving retrospective effect to this notification.
It may be noted that the State Council had received a favourable order from the Income Tax Appellate Tribunal in the year 2022 in a dispute with the tax department related to the penalty imposed against the Council for certain assessment years from 2011-12.
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