The Centre is likely to consider the request of the State government for exemption of Income Tax being collected from the Visvesvaraya Technological University, Karnataka’s only technological university.
Income Tax Department has recovered Rs. 439 crore as income tax from Visvesvaraya Technological University for the assessment years 2004-05 to 2013-14.
The Minister for Higher Education and Tourism R.V. Deshpande met the Union Finance Minister Arun Jaitley at New Delhi on Monday and submitted an appeal requesting for exemption of income tax under section 10(23c) (iii ab) of Income Tax Act 1961 to the VTU. He stressed that the VTU was established by the Government of Karnataka as per the VTU Act 1994 and by the virtue of the Act passed by the State Legislature, the income was exempted from taxation under Article 289(1) of the Constitution of India. Further, a university is a non-profit making organisation, he said.
Mr.Jaitley responded positively and instructed the concerned officials to look into the matter, VTU Registrar said in a press release issued here on Tuesday.
