Bring schools, hospitals under tax net, govt told

In a memorandum submitted to the Finance Minister the Associated Chambers of Commerce and Industry of India has argued that these institutions presently contribute no tax to government kitty though stay fattened with “huge surpluses”.

The chamber has pointed out that most of education, medical institutions and hospitals are being run on commercial basis and despite huge surpluses no tax is being paid on such income.

This issue applies equally to other organisations, which are also required per force to operate as a society or a trust to get the benefit of allotment of land at a concessional rate and to meet requirement of state laws. The Associated Chambers of Commerce and Industry of India  has pointed out that in case Education Boards or Universities amend their regulations, withdrawing conditions of recognizing only those institutions, which are societies or trusts, then some of these educational/medical institutions may opt for corporatization and will contribute a substantial amount to the revenue every year.