It is a question always posed from different corners whenever the schools get tax assessment notice from the Local bodies - Panchayath, Municipality, Corporation etc. The Municipality Act section 235 exempts buildings exclusively used for educational purposes and upto the level of higher secondary under the ownership of educational institutions having recognition of the Government and hostel buildings in which the students of such institutions reside. The similar provision panchayath raj act is Section 207.
What does this recognition means in case of CBSE schools is also a question often asked. A school following CBSE syllabus having affiliation to central board of secondary education can be treated as a recognized school for the purpose of exemption if No objection certificate is issued by State Government. The authorities cannot insist that the recognition in connection with KER should be placed for claiming exemption. Wherever statutory recognition is not called for the educational institution even NOC has to be treated as recognition for the purpose of claiming exemption for property tax.
Ref - 2006 KHC 1040 High Court of Kerala.
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