CBDT - Regional Air Connectivity Fund Trust

Last updated: 07 January 2022

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The Central Board of Direct Taxes (CBDT) has issued a notification regarding the Regional Air Connectivity Fund Trust. This trust, established by the Central Government, is now notified for specific income tax exemptions under Section 10(46) of the Income-tax Act, 1961. The exempted income includes government grants, levies from airlines, forfeited bank guarantees, and interest earned on these receipts. The notification is effective retrospectively from June 1, 2020, to March 31, 2021, and will apply for subsequent financial years up to 2024-2025, provided certain conditions are met.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi,

Notification No. 1/2022-Income Tax

Dated: 6th January, 2022

S.O. 73(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, ‘Regional Air Connectivity Fund Trust (PAN AADTR1130P), a trust constituted by the Central Government, in respect of the following specified income arising to that trust, namely:-

(a) Grant from Government;

(b) Receipt of levy from Airlines;

(d) Interest income earned on (a) to (c) above.

2. This notification shall be effective subject to the conditions that Regional Air Connectivity Fund 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.

3. This notification shall be deemed to have been applied for the period from 01.06.2020 to 31.03.2021 for the financial year 2020-2021 and shall apply with respect to the financial years 2021-2022, 2022-2023, 2023-2024 and 2024-2025.

[Notification No. 1/2022/F. No. 300196/28/2019-ITA-I]

SOURABH JAIN, Under Secy.

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect to this notification

FAQ :

The notification notifies the Regional Air Connectivity Fund Trust for specific income tax exemptions under Section 10(46) of the Income-tax Act, 1961.

The notification covers grants from the Government, receipts from levies on airlines, forfeiture of bank guarantees due to non-compliance by airlines, and interest earned on these amounts.

The trust must not engage in any commercial activity, its activities and income nature must remain unchanged, and it must file its income tax return as per Section 139(4C)(g).

The notification is deemed effective from 01.06.2020 to 31.03.2021 and applies to financial years 2021-2022, 2022-2023, 2023-2024, and 2024-2025.

Yes, the notification has been given retrospective effect for the financial year 2020-2021, from June 1, 2020, to March 31, 2021.