Income tax guide
Income Tax Exemption under Section 10(22B) for News Agencies
Section 10(22B) of the Income-tax Act, 1961 provides an income-tax exemption to qualifying news agencies notified by the Central Government. The exemption is subject to restrictions on the agency's purpose, use of income, distribution of profits and the validity of its notification.
At a glance: A news agency established in India solely for collecting and distributing news may qualify for exemption of its income if it satisfies the statutory conditions and holds an applicable Central Government notification. The exemption is not automatic for every media business.
What does Section 10(22B) provide?
Section 10 lists specified categories of income that are not included in total income for income-tax purposes. Clause (22B) concerns income of a news agency set up in India solely for the collection and distribution of news, as specified by the Central Government by notification in the Official Gazette, provided the statutory conditions are met.
| Eligible assessee | A qualifying news agency set up in India and notified by the Central Government. |
|---|---|
| Nature of income | Income of the notified news agency, subject to the requirements of Section 10(22B). |
| Amount exempt | The whole qualifying income for the period covered by a valid notification, subject to compliance with the conditions. |
| Notification validity | A notification may specify a period not exceeding three assessment years at a time. |
Conditions for claiming the exemption
- Exclusive purpose: The agency must be set up in India solely for the collection and distribution of news.
- Use of income: It must apply its income, or accumulate it for application, solely towards the collection and distribution of news.
- No distribution to members: It must not distribute its income in any manner to its members.
- Central Government notification: The agency must be specified by a notification in the Official Gazette for the relevant assessment year. Each notification can cover no more than three assessment years at a time.
- Continuing compliance: The conditions must remain satisfied during the relevant period. The Central Government may rescind a notification if the conditions are not fulfilled, after giving the agency a reasonable opportunity of being heard.
Meaning of important legal terms
News agency
For this exemption, the relevant characteristic is that the entity is set up in India solely to collect and distribute news. Merely publishing news or operating a media platform does not, by itself, establish eligibility.
Notification in the Official Gazette
This is the formal government notification identifying an eligible news agency and the assessment years for which the exemption applies. An agency should verify its own notification and applicable period before claiming exemption.
Assessment year
An assessment year is the twelve-month period beginning on 1 April following the relevant previous year. The notification's assessment-year coverage determines the period for which the exemption may be claimed.
How the exemption works in practice
A qualifying agency should retain its constitutive documents, applicable Gazette notification, audited accounts, records of income application or accumulation, and evidence that no income has been distributed to members. The agency should also verify whether any subsequent government order has rescinded its notification.
Example: If a news agency is notified for a specified assessment year and uses its income solely for news collection and distribution without making distributions to members, its qualifying income may be exempt under Section 10(22B). If the notification does not cover the relevant assessment year, the agency cannot rely on this provision merely because it met the other conditions.
Official law and tax resources
For the statutory wording, amendments, notifications and return-filing guidance, consult the Income Tax Department, the Income Tax e-Filing Portal, and the e-Gazette of India. Search the official legislation and Gazette records for Section 10(22B) and the notification applicable to the specific news agency.
Related income-tax guidance
Read about tax-free income under the Income-tax Act, other exemptions under Section 10, Chapter VI-A deductions and income-tax return filing resources.
This article describes the exemption under Section 10(22B) of the Income-tax Act, 1961. For a particular tax year, check the applicable legislation, transition provisions, and the agency's notification before relying on the exemption.