National Aviation Security Fee Trust Receives Income Tax Exemption from CBDT u/s 10(46) [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has granted income tax exemption to the National Aviation Security Fee Trust under clause (46) of section 10 of the Income-tax Act, 1961. This exemption, effective from the assessment year 2025-2026 to 2029-2030, covers the trust’s specified income arising during the financial years 2024-2025 to 2028-2029.

The National Aviation Security Fee Trust, established by the Central Government, plays a key role in managing aviation security funds as directed by the Ministry of Civil Aviation. The following income of the trust is exempted from income tax:

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(a)Grant or subsidy or any receipt in the nature of grant as approved by/under directions of Ministry of Civil Aviation, Government of India;

(b) Aviation Security Fee collected at the prevailing rates as per orders of Ministry of Civil Aviation, Government of India;

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

(d) Interest earned on bank deposits

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However, the exemption is subject to following conditions:

(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 return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

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