The Central Board of Direct Taxes (CBDT) has notified the tax exemption to the Bihar Electricity Regulatory Commission under section 10(34) of the Income Tax Act, 1961.
The notification issued on Tuesday stated that “the Central Government hereby notifies for the purposes of the said clause, ‘Bihar Electricity Regulatory Commission’ (PAN AAALB1099E), a Commission constituted by the State Government of Bihar, in respect of the following specified income arising to that Commission, namely: (a) amount received as licence fee from licensees in electricity; (b) amount received as application processing fee; and (c) Interest earned on Government Grants and on (a) & (b) above.”
Section 10(34), which provides an exemption to the shareholders in respect of dividend income, is withdrawn from Assessment Year 2021-20. Thus, dividends received during the financial year 2020-21 and onwards shall now be taxable in the hands of the shareholders.
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