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Rajiv Gandhi University of Health Sciences gets I-T notice on dues, fears account will be frozen

A senior official of the university said that they fear having their account of Rs 1,000 crore frozen or seized like it happened in the VTU case.   

Published: 25th January 2019 04:11 AM  |   Last Updated: 25th January 2019 07:48 AM   |  A+A-

Rs 2000, cash,money

For representational purposes (File | Reuters)

By Express News Service

BENGALURU: The Rajiv Gandhi University of Health Sciences (RGUHS), the only medical university in the state, has received a notice from the Income Tax department directing it to pay tax of Rs 177 crore due from 2013-14 to 2016-17. A senior official of the university said that they fear having their account of Rs 1,000 crore frozen or seized like it happened in the VTU case.   

RGUHS is registered under 12 (a) of I-T act under which they get exemption from paying tax.  But I-T department’s argument is that “since the university is earning interest on that money, it should pay the tax for that amount.”

Since 2012-13, the university has been earning interest on this amount. Considering this, the I-T department has issued notice to the university and the latest notice reached the varsity on Wednesday.

Zohra Jabeen, finance officer of the university, said, “We have received a notice from the I-T department on Wednesday and we are in the process of responding to it. We are in consultation with legal experts.”

The officer added: “The university is registered under the 12 (a) of I-T act where exemption has been given to education institutions from paying tax. But we received a notice because we have not utilised the funds kept in the university accounts. Due to some technical reasons we are unable to make use of that money. Half of this fund needs to be spent on the construction of campus at Ramanagara, but as the matter is in court we are not able to start the process and utilise the funds.”


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