Notification under clause 46 of section 10 of Income tax Act 1961 in case of Punjab Building and Other Construction

Last updated: 24 August 2023

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The Central Board of Direct Taxes has issued a notification under the Income Tax Act, 1961, granting an exemption for specific income earned by the Punjab Building and Other Construction Welfare Board. This exemption applies to labour cess collection, contribution collection, and interest earned on these. The notification is effective retrospectively from Assessment Year 2022-2023.

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

S.O. 3777(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, Punjab Building and Other Construction Welfare Board (PAN: AAALP0698P), a body constituted by the State Government of Punjab, in respect of the following specified income arising to that Board, namely:-
(a) Labour Cess collection;
(b) Contribution collection; and
(c) Interest earned on (a) and (b) above.

2. The provisions of this notification shall be effective subject to the conditions that Punjab Building and Other Construction Welfare Board,-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income remain unchanged throughout the financial years; and
(c) shall file returns of income in accordance with the provision of clause (g) of sub-section (4C) section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for the for the A.Y 2022-2023 and A.Y 2023-2024 relevant for F.Y. 2021-2022 and 2022-2023 respectively.

[Notification No. 67/2023/F.No.300196/4/2022-ITA-I]
VIKAS SINGH, Director (ITA-I)

Explanatory Memorandum

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

FAQ :

This notification grants an exemption under the Income Tax Act, 1961, for certain incomes of the Punjab Building and Other Construction Welfare Board.

The exempted incomes include Labour Cess collection, Contribution collection, and interest earned on these two.

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

This notification is deemed to have been applied for Assessment Year 2022-2023 and Assessment Year 2023-2024, relevant for Financial Year 2021-2022 and 2022-2023 respectively.