CBDT notifies Income Tax Exemption to “Tamil Nadu Water Supply and Drainage Board, Chennai” u/s 10(46) [Read Notification]

The Central Board of Direct Taxes ( CBDT ) Grants Income Tax Exemption to Tamil Nadu Water Supply and Drainage Board, Chennai Under Section 10(46) of Income Tax Act, 1961

The following income of the National Mission for Clean Ganga has been exempted from income tax :

1. Water charges for supply of water to recover the maintenance cost;
2. Centage charges received from local bodies work like water supply scheme and sewerage scheme to compensate for establishment charges;
3. Investigation and Detailed Project Report preparation charges for water supply and drainage scheme for establishment charges;
4. Interest earned on Bank Deposits

This notification shall be effective subject to the conditions that Tamil Nadu Water Supply and Drainage Board, Chennai –

1. shall not engage in any commercial activity;
2. its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); 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 applicable for assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029 relevant for the financial years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028 respectively.

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