Govt Reduces Tax Benefit for Educational Institutes in Budget 2024-25

The federal government has proposed to restrict tax credit to 80 percent for educational institutions which are non-profit organizations (NPOs) in the new budget and to prevent potential misuse by other schools and colleges. According to sources, the tax credit is proposed to be restricted to 80 percent for NPOs running educational institutions that also charge any fees from students. This is to avoid misuse of tax credits by educational institutions. Presently, a 100 percent tax credit is available to educational institutions being run by NPOs. For live updates on everything about the Federal Budget, visit this link.