CBDT Grants Income Tax Exemption to District Mineral Foundation Trust u/s 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT), vide notification no. S.O. 4342(E) issued on 4th October 2023 has notified the income tax exemption to ‘District Mineral Foundation (DMF) Trust’ under Section 10(46) of Income Tax Act, 1961. The 304 trusts under the DMF of different states were exempted from the income tax.

The income tax exemption is available to the following income:

1. Contribution by leaseholder to DMF as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015;
2. Interest received from lease holders for late payment;
3. Any Penalty charged to lease holder;
4. Income from Interest on fund available under DMF;
5. Interest received on Saving Bank Accounts; and
6. Interest received on Excess Fund invested in Term Deposit.

Also read: CBDT notifies Income Tax Exemption to ‘National Farmers Welfare Program Implementation Society’ u/s 10(46)

This notification shall be effective subject to the conditions that each of the District Mineral Foundation Trust-

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.

This notification shall be deemed to have been applied for the assessment year 2023-2024 relevant to financial year 2022-2023 and shall be applicable for assessment years 2024-2025 to 2027-2028 relevant to financial years 2023-2024 to 2026-2027.

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