Income Tax Department slaps ₹50 crore notice on Mumbai University

Income Tax Department labels Mumbai University as a private profiteering enterprise.

SHARE

As Mumbai University's (MU) revenue is more than its expenditure, the Income Tax (IT) Department has labelled Mumbai University as a private profiteering enterprise and has slapped a ₹50 crore  notice. 

Between 2006-2013, the tax amount that was assessed on Mumbai University is ₹48 crore. It has appointed an internal auditor who will take a standpoint on behalf of the University and look further into the matter. 

Also Read- Election Commission Allows Degree Colleges To Conduct Teacher Recruitment In Maharashtra

If MU loses the battle, it will forever come under the tax net. As stated in Times Of India,  the IT department’s contention is that the University has an annual budget of ₹200 crore of which the state’s annual grant is merely ₹20 crore. 

A University faculty said that taking under consideration the state's grant, it is only 10 per cent according to the income tax officers and that does not make them a public institution that can be exempted from tax.  

Also Read- Mumbai University Ensures Students Don’t Miss Exams While Participating In Extra-Curricular Activities

RELATED TOPICS