Introduction: The Ministry of Finance, through the Central Board of Direct Taxes, has issued Notification No. 8/2024 on Income Tax, dated 5th January, 2024. This notification specifically pertains to the ‘Haryana State Board of Technical Education, Panchkula,’ detailing the specified income categories that fall under the purview of clause (46) of section 10 of the Income-tax Act, 1961.
Detailed Analysis: The notification outlines the various sources of income for the Haryana State Board of Technical Education. These include grants, assignments, contributions from the Central Government and the State Government of Haryana, as well as fees such as affiliation fees, examination fees, migration fees, transcription fees, and more. Additionally, the notification covers royalties, charges, penalties, bequests, donations, endowments, contributions, sale proceeds of securities, and income from property. The income from bank deposits in the form of interest is also considered.
The effective application of this notification is subject to specific conditions. The Haryana State Board of Technical Education is mandated not to engage in any commercial activity. The nature of its activities and specified income must remain unchanged throughout the financial years. Furthermore, the Board is required to file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
The retrospective effect of this notification is limited to the assessment years 2022-2023 and 2023-2024, relevant for the financial years 2021-2022 and 2022-2023, respectively.
Conclusion: In conclusion, the Ministry of Finance’s Notification No. 8/2024 sheds light on the specific income categories of the Haryana State Board of Technical Education that fall under the purview of the Income-tax Act. The stringent conditions imposed ensure transparency and compliance, with the notification having retrospective application for the specified assessment years. This regulatory update provides clarity on the taxation aspects of the Board’s income, contributing to a more robust financial framework. The accompanying explanatory memorandum assures that no adverse effects are incurred by giving retrospective effect to this significant notification.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 8/2024 – Income Tax | Dated: 5th January, 2024
S.O. 83(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 State Board of Technical Education, Panchkula’ (PAN: AAAGT0008A), a Board constituted by Government of Haryana, in respect of the following specified income arising to the said Board, as follows:
(a) Grants, Assignments and Contributions received from the Central Government and the State Government of Haryana;
(b) Fees, such as Affiliation Fees, Examination Fees, Migration Fees, Transcription Fees, ;
(c) Royalties and charges including penalties;
(d) Bequests, donations and endowments or other contributions;
(e) Sale proceeds of any securities and Rents and profits from property vested in Haryana State Board of Technical Education; and
(f) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Haryana State Board of Technical Education, Panchkula –
(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 for the financial years 2021-2022 and 2022-2023 respectively.
[Notification No. 8 /2024 F. No. 300196/37/2021-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.
