Widening of the Scope of Notified Purposes Under Section 10(23AAA)

Under section 10(23AAA) of the Act, income of a fund set up by the employer for the welfare of employees (being members of such fund) in respect of the following notified purposes (subject to satisfaction of certain conditions) are exempt.

Cash benefits to a member of the fund

-        on superannuation, or

-        in the event of his illness or illness of his spouse or dependent children, or

-        to meet the cost of education of his dependent children; or

-       to meet the cost of annual medical tests / check-ups of the employee, his / her spouse and dependent children (inserted with effect from 3 June 2011.)

Cash benefits to the dependents of a member of the fund in the event of the death of such member

(Notification No. 33/2011/F. No. 197/12/2010-ITA-I dated 3 June 2011)

Related posts:

1. Section 10(23AAA) of the Income-tax Act, 1961 – Exemptions – Income received by any person on behalf of fund established for welfare of employees or their dependents – Notified purposes/conditions for establishment of fund
2. No income tax on amount received to meet the cost of Annual medical check-ups
3. Notification No. 67/2010- Notified scheme for purposes of section 80-IB(10)
4. CBEC recommended widening the scope of levying service tax on the entertainment business
5. Section 18A of the Central Sales Tax Act, 1956 – Appeals to highest appellate authority of state – Appointed day notified for purposes of section 18A(2)