Education not a commercial activity; collection of capitation fees in exchange for admissions is illegal: Madras High Court

It deprecated the practice of educational institutes violating the Capitation Fee Act and then attempting to secure more benefit out of it by seeking tax exemption for such capitation fees.
Madras High Court, Principal Bench
Madras High Court, Principal Bench

The Madras High Court Monday held that the collection of 'capitation fees,' or donations by private educational institutes in exchange for admissions is illegal and punishable [Commissioner of Income Tax Chennai v. M/s MAC Public Charitable Trust and others].

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