Schedule IE- 4 – Income and Expenditure Statement AY 2026-27
‘Schedule IE-4’ is applicable to assessees claiming exemption under Sections 10(23C)(iiiad) or 10(23C)(iiiae) of the Income-tax Act, 1961. These provisions apply to educational or medical institutions whose total annual receipts from all institutions do not exceed Rs. 5 crore during the financial year.
The schedule must be filled separately for each institution, mentioning the objective (educational or medical), the address where activities are carried out, gross annual receipts, amount applied towards the stated objective, and the balance accumulated during the year. An add-row feature is provided to enter multiple institutions. Finally, the total gross annual receipts across all universities and institutions are to be aggregated to determine eligibility under the Rs. 5 crore threshold for claiming exemption.
Section 10(23C)(iiiad) , Section 10(23C)(iiiae) of Income-tax Act, 1961
Exemption for Institutions with Annual Receipts up to Rs. 5 Crores
- Educational Institutions [Section 10(23C)(iiiad)]
Income is exempt if:- It exists solely for educational purposes,
- It does not exist for profit, and
- Aggregate annual receipts ≤ Rs. 5 crores.
- Hospitals or Specified Institutions [Section 10(23C)(iiiae)]
Income is exempt if:- It exists solely for philanthropic purposes,
- It does not exist for profit, and
- Aggregate annual receipts ≤ Rs. 5 crores.
The Rs. 5 crore limit applies on an aggregate basis if a trust runs both educational and medical institutions. If combined receipts do not exceed Rs. 5 crores, exemption is available.
This schedule applies to ITR-7.