The Ministry of Finance, under Notification No. 63/2023, has granted specific tax exemptions to the ‘Haryana Water Resources (Conservation, Regulation and Management) Authority,’ an entity established by the State Government of Haryana. The notification details the specified incomes eligible for exemption and the conditions that the Authority must comply with to enjoy these benefits.
Analysis:
The tax exemptions conferred on the Haryana Water Resources Authority relate to the following specified incomes:
(a) Grants received from the State Government of Haryana. (b) Application fee & Tariff fee received from users. (c) Interest earned on the aforementioned incomes.
These exemptions are subject to the Authority adhering to the following conditions:
- It must not engage in commercial activity.
- The nature of the specified income and related activities must remain unchanged.
- The Authority must file returns of income under the Income-tax Act’s specific provisions.
The notification also clarifies that it is to be applied retrospectively for the assessment years 2022-2023 and 2023-2024, without adversely affecting any person.
Conclusion: Notification No. 63/2023 represents an essential directive for the Haryana Water Resources Authority, outlining the tax treatment for specific incomes. By detailing the eligible incomes and the conditions that must be met, the notification ensures that the Authority complies with the legal requirements to benefit from the exemptions. The retrospective application for the specified assessment years emphasizes the relevance of this notification to the Authority’s tax planning and obligations.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 63/2023-Income Tax | Dated: 16th August, 2023
S.O. 3667(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, ‘Haryana Water Resources (Conservation, Regulation and Management) Authority’ (PAN AADAH3590A), an Authority established by the State Government of Haryana, in respect of the following specified income arising to that Authority, namely:
(a) grants received from State Government of Haryana;
(b) application fee & Tariff fee received from users; and
(c) interest earned on (a) & (b) above.
2. This notification shall be effective subject to the conditions that Haryana Water Resources (Conservation, Regulation and Management) 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 years 2022-2023 and 2023-2024 relevant to financial years 2021-2022 and 2022-2023 respectively.
[Notification No. 63/2023/F.No.300196/8/2022-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.
