The Central Board of Direct Taxes (CBDT) has issued a series of notifications providing income tax exemptions for public authorities across several sectors under Section 10(46) of the Income-tax Act, 1961. These exemptions apply to various organizations, including the West Bengal State Electricity Transmission Company Limited's Unscheduled Interchange Fund, Gujarat Water Supply and Sewerage Board, and District Legal Service Authorities in Haryana.
Notification No. 107/2024 outlines the exemption granted to the Unscheduled Interchange Fund under the West Bengal State Electricity Transmission Company Limited, specifying that residual income from the interchange pool balance and interest on fixed deposits will be exempt from tax. Similarly, Gujarat Water Supply and Sewerage Board has been granted exemptions on grants received from the government, water tariffs, and interest earned on deposits under Notification No. 108/2024.
Additionally, Notification No. 110/2024 provides income tax exemptions for District Legal Service Authorities in Haryana, covering grants, fees received under court orders, and interest income.
These notifications apply retrospectively to previous financial years and prospectively for future assessments, ensuring that these organizations' non-commercial activities and public welfare functions continue to receive tax relief. The exemptions are subject to certain conditions, including maintaining the non-commercial nature of their operations and filing income tax returns as per Section 139 of the Income-tax Act.
The notifications reflect the government’s focus on supporting public utility organizations by alleviating their tax burden, allowing them to concentrate on providing essential services.
Official copy of the notification has been attached
CAclubindia
