CBDT grants Income Tax Exemption to 4 Govt Bodies u/s 10(46) [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has granted income tax exemptions to four government bodies under Section 10(46) of the Income-tax Act, 1961. These exemptions apply to specific incomes and are designed to support public service institutions by reducing their tax burdens.

The bodies covered are the District Legal Services Authorities ( DLSA ) in Haryana, the Gujarat Water Supply and Sewerage Board, the Real Estate Regulatory Authority (RERA) in New Delhi, and the State Load Despatch Centre Unscheduled Interchange Fund in West Bengal. We’ll see the detailed breakdown below.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

District Legal Services Authorities, Haryana

The CBDT, vide notification no. 110 /2024/F. No. 300196/64/2018-ITA-I (Pt.1) dated 11th October 2024 granted income tax exemptions to the District Legal Services Authorities (DLSA) of Haryana, constituted under the Legal Services Authorities Act, 1987 on the following sources of income:

• Grants received from the Punjab and Haryana High Court, the National Legal Services Authority, and the Haryana State Legal Services Authority.
• Grants or donations from the Central or Haryana State Government for the purpose of the Legal Services Authority Act, 1987.
• Amounts received under court orders.
• Recruitment application fees.
• Interest earned on bank deposits.

These exemptions are subject to conditions that the DLSA must not engage in commercial activities and must file income tax returns as specified under Section 139(4C)(g) of the Income Tax Act. This exemption is applicable for financial years 2023-2024 to 2027-2028.

Gujarat Water Supply and Sewerage Board                                    

The CBDT, vide notification no. 108 /2024/ F. No. 300196/15/2021-ITA-I dated 11th October 2024 granted income tax exemptions to the Gujarat Water Supply and Sewerage Board (GWSSB), constituted under the Gujarat Water Supply and Sewerage Board Act, 1978 on the following sources of income:

• Grants received from the government, local bodies, and other agencies.
• Centage charges set by the Gujarat government.
• Water charges (tariff fixed by the Gujarat Government) collected from local bodies, village panchayats, and industries.
• Pension and gratuity contributions.
• Other incomes like investigation charges, hire fees, sale of tender schedules, and rent received under the Gujarat Water Supply and Sewerage Board Act, 1978.
• Interest on bank deposits.

The GWSSB’s exemptions are subject to the condition that it must not engage in commercial activities and maintain the same nature of income. It must file income tax returns as specified under Section 139(4C)(g) of the Income Tax Act. This exemption applies retrospectively for financial years 2021-2022 and 2022-2023, and prospectively for 2023-2024 to 2025-2026.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

Real Estate Regulatory Authority (RERA), New Delhi

The CBDT, vide notification no. 109 /2024/F. No. 300196/57/2018-ITA-I dated 11th October 2024 granted income tax exemptions to the Real Estate Regulatory Authority (RERA) New Delhi, constituted under the Real Estate (Regulation and Development) Act, 2016, on the following types of income:

• Money received as Grants-in-aid or loans/advances from the government.
• Fees and penalties were collected from builders, developers, agents, and other stakeholders as per the Real Estate Act, 2016.
• Interest earned on the grants-in-aid and fees collected from builders, developers, agents, and other stakeholders under the Real Estate Act, 2016.

RERA’s exemptions are conditional on the body not engaging in commercial activities and filing income returns as per the Income-tax Act. This exemption is for financial years from 2018-2019 to 2022-2023.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

State Load Despatch Centre Unscheduled Interchange Fund, West Bengal

The CBDT, vide notification no. 107 /2024/F. No. 300196/4/2024-ITA-I dated 11th October 2024 granted income tax exemptions to the State Load Despatch Centre (SLDC) Unscheduled Interchange Fund under the West Bengal State Electricity Transmission Company Limited which is constituted under the Electricity Act, 2003 on the following types of income:

• Residual money in the unscheduled interchange pool balance account.
• Income-related to unscheduled interchange operations.
• Interest earned on fixed deposits and auto-sweep accounts.

The SLDC must not engage in commercial activities, and the nature of its income should remain unchanged to maintain the exemption. This exemption applies retrospectively to financial years 2022-2023 and 2023-2024

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates