The Supreme Court of India has given a landmark judgement which will have far reaching impact on ‘educational institutions’ subject to exemptions u/s 10(23C)(vi). This ruling will also have impact on other charitable institutions as far as incidental business activities are concerned. It is held that the requirement of the charitable institutions “solely” engage itself in education or educational activities, and not engage in any activity of profit, it means such institutions cannot have objects which are unrelated to imparting education or educational activities. This is the basic provision for granting exemption u/s 10(23C)(vi). If the educational institution seems to be working with a profit motive i.e. fees collected from students is substantially more than the cost of services then such organizations will not be eligible for exemptions. The effect of the ruling will apply to all charitable organizations who charge their beneficiaries. To know more, please read our Volume 15 Issue 7 of Standard & Norms: Supreme Court Judgement on Educational Institutions.