10(23) License Acquisition refers to the process of obtaining a tax exemption under Section 10(23) of the Income Tax Act, 1961. This section provides tax exemptions to specific organizations, institutions, and trusts engaged in charitable or religious activities, provided they meet the required criteria.
To acquire this exemption, an organization must apply to the Income Tax Department and demonstrate that its income is used exclusively for charitable or religious purposes. The application includes details of the organization’s objectives, activities, and financial information. Once approved, the organization is granted a Section 10(23) exemption, which means it is not required to pay tax on the income used for its charitable or religious functions.
This license is essential for non-profit entities that wish to benefit from tax exemptions, allowing them to allocate more resources towards their mission and operations.
