Notification under clause 46 of section 10 of Income tax Act 1961 in case of DMF

Last updated: 24 August 2023

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Quick Summary

The Central Board of Direct Taxes (CBDT) has issued a notification under the Income Tax Act, 1961. This notification specifies that the 'District Mineral Foundation Trust' (DMF) is now recognised as a 'class of Authority' for tax exemption purposes. This applies to specific incomes generated by the DMF, including contributions from leaseholders, late payment interest, penalties, and interest earned on funds.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 23rd August, 2023

S.O. 3776(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, ‘District Mineral Foundation Trust’ as specified in the schedule to this notification, constituted by Government in exercise of powers conferred under section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015) as a ‘class of Authority’ , in respect of the following specified income arising to that Authority, namely :-

(a) Contribution by lease Holder to DMF as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015;
(b) Interest received from lease holders for late payment;
(c) Any Penalty charged to lease holder;
(d) Income from Interest on fund available under DMF;
(e) Interest received on Saving Bank Accounts; and
(f) Interest received on Excess Fund invested in Term Deposit.

For Full notification please refer to the attachment

FAQ :

This notification specifies that the 'District Mineral Foundation Trust' (DMF) is recognised as a 'class of Authority' for the purposes of clause (46) of section 10 of the Income-tax Act, 1961, allowing for certain income exemptions.

The notification covers contributions by leaseholders, interest received for late payments, penalties charged to leaseholders, income from interest on DMF funds, interest on savings bank accounts, and interest on excess funds invested in term deposits.

This notification is issued under clause (46) of section 10 of the Income-tax Act, 1961.

The District Mineral Foundation Trust was constituted by the Government in exercise of powers conferred under section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

This notification was issued on the 23rd August, 2023.