CBDT exempts Chennai Metropolitan Water Supply and Sewerage Board from Income Tax u/s 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT), vide notification no. S.O. 90(E) dated 8th January 2024 has notified the income tax exemption of Chennai Metropolitan Water Supply and Sewerage Board under Section 10(46) of Income Tax Act, 1961.

The following income are exempted from income tax :

1. Grant and subsidies received from Government;
2. Centage receipts received from Municipalities, Local authority and Government;
3. Receipts of taxes, charges, fees, fines, forfeitures, penalties, etc. by whatever name called;
4. Income from sale of farm produce, rent from properties;
5. Other miscellaneous income such as interest on deposits with TNEB, GPF/CPS investments, staff welfare investments, Debt Reserve Fund, Fixed Asset renewal fund, advance to staff and contractors, sale of assets/scrap; and
6. Interest earned on bank deposits.

The notification shall be effective subject to the conditions that Chennai Metropolitan Water Supply and Sewerage Board:

1. shall not engage in any commercial activity;
2. activities and the nature of the specified income shall remain unchanged throughout the financial years; and
3. shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

To Read the full text of the Notification CLICK HERE

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