Are Income Tax Exemptions Availed Public Information Under RTI? A Detailed Legal Analysis
Educational institutions in India often enjoy income tax exemptions under Section 10(23C) of the Income Tax Act. These exemptions are granted only after the Income Tax (IT) Department examines whether the school qualifies as a charitable or non-profit institution. A recurring question from RTI applicants is whether the details of such exemptions—especially the amount—can be disclosed to the public.
This article analyses the legal position using an important Central Information Commission (CIC) ruling that clarifies how much information the Income Tax Department must reveal.
Why Income Tax Exemption Information Matters
Schools operating as charitable institutions enjoy significant tax benefits. These directly impact:
- Government tax revenues
- Transparency in public finance
- Accountability of institutions claiming charitable status
- Public understanding of whether institutions are genuinely non-profit
Given these implications, it is reasonable for citizens to question whether exemption data should be accessible under the Right to Information Act.
Case Example: RTI Application on School’s Tax Exemptions
Background of the RTI Request
The appellant filed an RTI application seeking:
- Copies of orders issued under Section 10(23C) granting tax exemption to schools
- Details of exemption availed by Sophia Secondary School, Hissar, since its inception
- Information on buses owned school
PIO’s Response
The Public Information Officer (PIO) denied the request on multiple grounds:
- The applicant had not specified the names of schools for general exemption orders
- Exemption details of Sophia School were labelled personal information
- Queries about school buses were transferred to the Regional Transport Office (RTO), as the IT Department was not concerned
The matter then came before the CIC.
CIC’s Findings: Tax Exemption Data Is Not Personal Information
The Central Information Commission took a clear view on the disclosure of exemption details.
1. Tax exemption availed school affects public revenue
The Commission observed:
- A school claiming exemption under Section 10(23C) reduces the revenue of the Central Government
- Such exemptions directly relate to public funds and public interest
- Therefore, they cannot be treated as private or confidential financial details
2. Information is not “personal” within the meaning of Section 8(1)(j)
The PIO’s claim that disclosure would invade the privacy of the school was rejected. Schools availing tax exemptions operate in a public domain, and their financial exemptions involve statutory oversight authorities.
3. Disclosure must be limited to exemption amounts—not detailed ITRs
While the CIC allowed disclosure of exemption figures, it protected sensitive financial documents such as full ITR copies. This ensured:
- Transparency
- Protection of confidential internal records
Final Direction
The CIC ordered the PIO to disclose the amount of tax exemption availed Secondary School, Hissar.
What This Decision Means for RTI Applicants
1. You can seek the quantum of income tax exemption claimed institutions
The CIC has confirmed that the public has a right to know how much revenue the government has foregone.
2. Tax exemptions are directly linked to public interest
Since exemptions are provided from public revenue, they cannot be treated as strictly private or confidential.
3. However, detailed tax returns or internal financial statements may still be protected
Applicants should request only the exemption amount, not sensitive financial documents.
4. Information about facilities (like buses) may need to be sought from relevant departments
For example:
- RTO for vehicle-related data
- Education department for school-related approvals
- Charity commissioner for trust documents
How to File an RTI to Know Tax Exemptions Availed School
When filing an RTI for such information, applicants should specifically ask for:
- Whether the school has been granted exemption under Section 10(23C)
- The amount of exemption availed school each financial year
- Copies of approval or rejection orders (if not confidential)
- Name of the authority granting the exemption
Avoid asking for:
- Complete income tax returns
- Internal audit reports
- Sensitive financial attachments
This ensures better compliance and faster results.
Conclusion
The CIC ruling establishes an important principle: Income tax exemptions granted to schools are not private information. Since such exemptions impact government revenue and relate to institutions functioning in the public domain, the public has every right to access the amount of exemption availed.
This decision strengthens transparency in the education sector and supports informed public scrutiny of institutions that claim charitable or non-profit status.
