On the 19th of October, 2023, the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes issued Notification No. 90/2023-Income Tax, providing crucial information about tax exemption. The notification pertains to ‘Punjab Dental Council, Mohali,’ and signifies a significant development in the world of taxation. In this article, we will delve into the detailed analysis of this notification to understand its implications and conditions.
1. Notification Summary: Notification No. 90/2023-Income Tax, dated 19th October, 2023, exercises the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961. It grants tax exemption to ‘Punjab Dental Council, Mohali’ (PAN: AAAJP0976C), a council constituted by the Government of Punjab, specifically for the following income sources:
- Receipt of Registration/Renewal received from Doctors
- Interest income on accumulated surplus in the form of F.D.R.s
2. Conditions for Exemption: The notification outlines certain conditions for the tax exemption to be effective:
(a) Punjab Dental Council, Mohali, should not engage in any commercial activity.
(b) The activities and nature of the specified income must remain unchanged throughout the financial years.
(c) The council must file a 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. Effective Application: This notification is deemed to have been applied for assessment years 2022-2023 and 2023-2024, relevant to the financial years 2021-2022 and 2022-2023.
4. Explanatory Memorandum: The explanatory memorandum accompanying the notification certifies that no individual or entity is adversely affected by granting retrospective effect to this notification.
Conclusion:
The Ministry of Finance’s recent notification, Notification No. 90/2023-Income Tax, signifies a pivotal development by providing tax exemption to the ‘Punjab Dental Council, Mohali’ for specific income sources. While this exemption offers a significant benefit to the council, it is accompanied by stringent conditions to ensure that the council’s activities and income sources remain in line with the specified criteria.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 90/2023-Income Tax | Dated: 19th October, 2023
S.O. 4577(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 Dental Council, Mohali’ (PAN: AAAJP0976C), a Council constituted by the Government of Punjab, in respect of the following specified income arising to that council, namely:
a) Receipt of Registration/Renewal received from Doctors
b) Interest income on accumulated surplus in the shape of F.D.R.s
2. This notification shall be effective subject to the conditions that Punjab Dental Council, Mohali :-
(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 assessment years 2022-2023 and 2023-2024 relevant to the financial years 2021-2022 and 2022-2023.
[Notification No. 90/2023 F.No.300196/11/2022-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.
