Notification No. 46/2020 [F.No.300196/07/2020-ITA-I] / SO 2326(E)

Last updated: 16 July 2020

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The Central Government has officially notified the 'National Aviation Security Fee Trust' under the Income-Tax Act, 1961. This notification specifies the types of income received by the trust that are eligible for exemption, including grants, aviation security fees, passenger service fee components, and interest earned on investments, provided these are used for the trust's objectives. The notification is effective for assessment years 2020-2021 through 2024-2025, subject to certain conditions.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 13th July, 2020

S.O. 2326(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘National Aviation Security Fee Trust’ (PAN AADTN2508F), a trust established by the Central Government, in respect of the following specified income arising to that trust, namely:-

(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/Dividend earned on investment of amount collected it it is utilized to meet expenditure to realize objectives of the trust.

2. This notification shall be effective subject to the conditions that National Aviation Security Fee Trust,-

(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.

(d) shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

3. This notification shall apply with respect to the assessment years 2020-2021, 2021-2022, 2022- 2023, 2023-2024 and 2024-2025.

[Notification No. 46 /2020/F. No. 300196/07/2020-ITA-I]

PRAJNA PARAMITA, Director, (ITA-1)

FAQ :

The National Aviation Security Fee Trust is a trust established by the Central Government to manage specific income related to aviation security.

The specified income includes grants or subsidies approved by the Ministry of Civil Aviation, aviation security fees collected, passenger service fee components transferred from escrow accounts, and interest/dividends earned on investments used for the trust's objectives.

The trust must not engage in commercial activity, its activities and income nature must remain unchanged, and it must file its income tax return and an audit report as per the Income-tax Act.

This notification applies to the assessment years 2020-2021, 2021-2022, 2022-2023, 2023-2024, and 2024-2025.

Grants or subsidies are approved by/under the directions of the Ministry of Civil Aviation, Government of India. Aviation security fees and passenger service fee components are collected as per orders of the Ministry of Civil Aviation.