CBDT : Notification under clause 46 of section 10 of Income tax Act 1961

Last updated: 20 September 2023

Save Share

Quick Summary

The Central Board of Direct Taxes (CBDT) has issued a notification granting income tax exemption to the Uttar Pradesh Expressways Industrial Development Authority. This exemption applies to specific income sources, including grants from the state government, proceeds from the disposal of property, tender and license fees, and interest earned on funds. The notification is effective from the assessment year 2023-2024, provided the Authority adheres to certain conditions, such as not engaging in commercial activities and maintaining the nature of its specified income.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 19th September, 2023

S.O. 4118(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, ‘Uttar Pradesh Expressways Industrial Development Authority’ (PAN AAALU0121E), an Authority constituted by the State government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely:

(a) grants received from the state government;
(b) moneys received from the disposal of land, building and other properties, movable and immovable;
(c) moneys received by way of rent & fees or any other charges from the disposal of land, building and other properties, movable and immovable;
(d) Income earned from Tender Fees, Document Fees, License Fees; and
(e) Interest earned on funds deposited in the banks and on (a) to (d) above.

2. This notification shall be effective subject to Uttar Pradesh Expressways Industrial Development Authority:-
(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.

3. This notification shall be deemed to have been applied for the assessment year 2023-2024 relevant for financial year 2022-2023.

[Notification No. 78/2023 F.No.300196/22/2022-ITA-I]
VIKAS SINGH, Director (ITA-I)

FAQ :

The notification aims to grant income tax exemption to the Uttar Pradesh Expressways Industrial Development Authority under clause 46 of section 10 of the Income-tax Act, 1961.

The exempted income includes grants from the state government, money from disposing of property, income from tender fees, document fees, license fees, and interest earned on funds.

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

This notification is deemed to have been applied for the assessment year 2023-2024, which is relevant for the financial year 2022-2023.