Govt Reduced Tax Benefits for Non-Profit Edu Institutions

The federal government has announced a new proposal in the 2024-25 budget to limit the tax credit for non-profit educational institutions to 80 percent. This measure aims to prevent the potential misuse of tax benefits by certain schools and colleges. The candidates can know about the complete updates of Federal Budget 2024-25: Reduced Tax Benefits for Non-Profit Educational Institutions.

According to official sources, this proposed tax credit limitation will apply to non-profit organizations NPOs operating educational institutions that charge any fees from their students. The objective is to curb the exploitation of tax credits by these institutions.

Currently, educational institutions managed by NPOs are eligible for a 100 percent tax credit. However, the new proposal seeks to reduce this benefit to 80 percent.

For ongoing updates on the Federal Budget, visit online site.