CBDT notifies Income Tax Exemption u/s 10(46) for Punjab Building and Other Construction Welfare Board and DMF Trust [Read Notification]

The Central Board of Direct Taxes (CBDT) vide notifications number S.O. 3777(E) and S.O. 3776(E) issued on 23rd August 2023 has notified the income tax exemption under Section 10(46) of the Income Tax Act, 1961 for Punjab Building and Other Construction Welfare Board and District Mineral Foundation (DMF) Trust respectively.

Regarding the Punjab Building and Other Construction Welfare Board, Under the authority granted by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby announces its notification, for the intentions of the mentioned clause, regarding the Punjab Building and Other Construction Welfare Board. This Board, established by the Punjab State Government, is now recognized for the specified income mentioned below:

1. Labour Cess collection;
2. Contribution collection; and
3. Interest earned on (a) and (b) above

The notification shall be deemed to have been applied for the A.Y 2022-2023 and A.Y 2023-2024 relevant for F.Y. 2021-2022 and 2022-2023 respectively.

Regarding the DMF Trust, the following income shall be exemption from Income Tax exemption namely:

1. Contribution by lease Holder 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.

This notification shall be deemed to have been applied for the assessment year 2023-2024 to 2027-2028 relevant to financial year 2022-2023 to 2026-2027 in respect of Trusts mentioned in column (2) of the below mentioned schedule.

The provisions of both the notification shall be effective subject to the conditions that Punjab Building and Other Construction Welfare Board and DMF Trust-

1. shall not engage in any commercial activity;
2. activities and the nature of the specified income remain unchanged throughout the financial years; and
3. shall file returns of income in accordance with the provision of clause (g) of sub-section (4C) section 139 of the Income-tax Act, 1961

To Read the full text of the Order CLICK HERE

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