Income Tax Dept notifies Tax Exemption to Uttar Pradesh Electricity Regulatory Commission [Read Notification]

Tax Exemption - Income Tax Department - Uttar Pradesh Electricity Regulatory Commission - Taxscan

The Central Board Direct Taxes (CBDT) has notified tax exemption to the Uttar Pradesh Electricity Regulatory Commission under section 10(34) of the Income Tax Act, 1961.

A notification issued on Wednesday, stated that “the Central Government hereby notifies for the purposes of the said clause, ‘Uttar Pradesh Electricity Regulatory Commission’ (PAN AAALU0227H), a committee constituted under the Uttar Pradesh Electricity Reforms Act, 1999 (U.P. Act No.24 of 1999), in respect of the following specified income arising to that Commission, namely:- (a) Amount received in the form of Government grants; (b) Amount received in the form of licence fees & Fines; and (c) Interest earned on (a) & (b) above. 2. This notification shall be effective subject to the conditions that Uttar Pradesh Electricity Regulatory Commission,- (a) shall not engage in any commercial activity; (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and (c) 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. 3. This notification shall be deemed to have been applied for the financial year 2021-2022 and shall be applicable with respect to the financial years 2022-2023, 2023-2024, 2024-2025 and 2025-2026.”

Section 10(34), which provides an exemption to the shareholders in respect of dividend income, is withdrawn from Assessment Year 2021-20.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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Notification No. 79/2022/F. No. 300196/38/2021-ITA-I

Date of Judgement:   JULY 6, 2022

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