Income Tax Department tightens grip on tax evasion by schools

The Income Tax Department has intensified its action against tax evasion in educational institutions by launching surveys across the country. The department’s Exemption Wing has identified several schools suspected of engaging in practices like selling seats to evade taxes.

On Monday, the department conducted a survey at R Mangalam School in Delhi-NCR, which operates a network of 14 schools and colleges nationwide. The move comes after repeated complaints regarding alleged tax violations by the institution.

Sources indicate that the complaints against the management included the selling of regular and Economically Weaker Section (EWS) seats, which are meant to be reserved under government-mandated provisions.

The Exemption Department has reportedly been monitoring such irregularities in schools for a long time. Officials say some institutions continue to operate as English-medium schools while allegedly misusing provisions meant to facilitate affordable education.

The crackdown highlights the government’s focus on ensuring accountability and transparency in educational institutions that benefit from tax exemptions. Further action is likely based on the findings of the ongoing surveys.