Friday, August 7, 2020
Home Headlines CBDT notifies Income Tax Exemption to ‘National Aviation Security Fee Trust’

CBDT notifies Income Tax Exemption to ‘National Aviation Security Fee Trust’ [Read Notification]

By Taxscan Team -

The Central Board of Direct Taxes (CBDT) on Monday notified income tax exemption to the National Aviation Security Fee Trust.

The National Aviation Security Fee Trust is established by the Central Government in respect of the specified income arising to the trust. As per the notification issued by the Board today, the following income is exempted from the purview of taxation;

Firstly, the income includes grant or subsidy or any receipt in the nature of grant as approved by/under directions of the Ministry of Civil Aviation, Government of India.

Secondly, the Aviation Security Fee collected at the prevailing rates as per orders of the Ministry of Civil Aviation, Government of India.

Thirdly, the amount transferred from escrow accounts for deposits of the passenger service fee (security component) maintained by airport operators with the scheduled banks for the Ministry of Civil Aviation, Government of India as beneficiary.

Lastly, the Interest/Dividend earned on the investment of the amount collected is utilized to meet expenditure to realize the objectives of the trust.

This notification shall apply with respect to the assessment years 2020-2021, 2021-2022, 2022- 2023, 2023-2024, and 2024-2025.

The notification shall be effective subject to the conditions that National Aviation Security Fee Trust shall not engage in any commercial activity; activities and the nature of the specified income shall remain unchanged throughout the financial years; shall file a return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961; and shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

To Read the full text of the Notification CLICK HERE