Are section 25 companies in India exempt from income tax?
Section 25 companies in India, now known as Section 8 companies under the Companies Act, 2013, are nonprofit organizations formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other useful object. These companies are registered with the objective of applying their profits, if any, or other income solely for promoting their objectives, and they do not distribute dividends to their members. Under the Income Tax Act, 1961, Section 8 companies (formerly Section 25 companies) are eligible for certain tax exemptions. However, it's important to note that the mere registration as a Section 8 company does not automatically grant complete exemption from income tax. The tax benefits and exemptions available to these companies are subject to meeting specific conditions and compliance requirements. Here are some key points regarding income tax exemptions for Section 8 companies: Registration: Section 8 companies must obtain regis...