CBDT notifies Income Tax Exemption to UIDAI u/s 10(46) of Income Tax Act [Read Notification]

The Central Board of Direct Taxes (CBDT) vide notification number S.O. 3782(E) issued on 24th August 2023 has notified the Income Tax Exemption to Unique Identification Authority of India (UIDAI), a statutory Authority established under the provisions of the AADHAAR Act, 2016 by the Government of India under Section 10(46) of Income Tax Act, 1961.

The board has indicated that the following income received by UIDAI is not subject to income tax. The income is as follows:

• Grants/Subsidies received from Central Government;
• Fees/ Subscriptions including RTI Fee, Tender Fee, Sale of Scrap, PVC card, etc;
• Authentication, Enrolment and Updation service charges received;
• Term/Fixed Deposits; and (e) Interest earned on (a) to (d) above

The notifications shall be effective if the UIDAI is not engaged in any of the commercial activity. Also, the activities and the nature of the specified income shall remain unchanged throughout the financial years. The UIDAI 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 will be considered as applicable for the assessment years spanning from 2019-2020 to 2023-2024, which are relevant to the financial years 2018-2019 through 2022-2023, inclusive.

Recently, the CBDT also notified the income tax exemptions to Punjab Building and Other Construction Welfare Board, DMF Trust and Urban Improvement Trust of Udaipur. The Section 10(46) of the Income Tax Act empowers the board to provide income tax exemptions to statutory body/ authority/ board/ commission subject to conditions.

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