They don’t serve a public purpose: IT Dept cancels non-profit status of independent media
text_fieldsThe Income Tax Department has issued orders challenging the non-profit status of several independent media outlets, including The Reporters Collective (TRC) and Bengaluru-based Kannada website The File, asserting that their journalism does not serve a public purpose.
These orders, which impact tax exemptions granted under the non-profit status, have raised concerns about the future of independent journalism in India, as they could hinder the ability of such organisations to operate without financial encumbrances.
The orders, which can be appealed, argue that the activities of these media outlets are commercial in nature, involving the printing and publishing of news materials, and therefore do not qualify as charitable.
The Reporters Collective, a New Delhi-based organisation registered as a trust, has been instrumental in publishing several investigative reports, including exposés on the allocation of Sainik Schools to RSS and BJP-affiliated groups and the removal of health warnings on fortified rice.
The cancellation of their non-profit status has been criticised as a blow to public-interest journalism, with TRC stating that it severely impairs their ability to continue their work and undermines the conditions for independent journalism in the country. They have vowed to seek legal remedies to protect their right to carry out investigative journalism and research without fear or threats.
Similarly, The File, known for its investigations into Karnataka’s political landscape, faced cancellation of its tax exemptions under sections 12A and 80G of the Income Tax Act in December 2024.
The I-T Department deemed its activities non-charitable, citing revenue generation through its website, a claim disputed by The File’s founder, who emphasised that the platform is ad-free and does not operate as a commercial venture. The organisation has filed an appeal against the decision.
This is not the first instance of the I-T Department targeting independent media ecosystems. In September 2022, officials conducted a survey of The Independent and Public-Spirited Media Foundation (IPSMF), a philanthropic body supporting numerous digital media organisations across India.
The Reporters Collective has produced investigative reports in multiple formats and languages, conducted research, and trained journalists over the past five years. Its non-profit status was cancelled a month after it reported on an alleged attempt by the Modi-led Union government to manipulate global indices and rankings.
The organisation has also published reports on the ethnic conflict in Manipur, women’s safety, and the prioritisation of commercial interests over forest conservation and indigenous rights.
On Monday, Congress leader P. Chidambaram commented on social media, stating that “one more building block of freedom was knocked down” and attributing the cancellation to the government’s resistance to independent journalism.
The cancellations, affecting funding sources reliant on public contributions, could severely impair the ability of these organisations to conduct investigative reporting, research, and training. With these developments, concerns over the future of independent, public-interest journalism in India continue to grow.