In a significant development, the Central Board of Direct Taxes (CBDT) has issued Notification No. 43/2024, dated May 22, 2024, under Section 10(46) of the Income-tax Act, 1961. This notification grants tax exemptions to the Tamil Nadu Water Supply and Drainage Board (TNWSDB) for specified income sources. The move aims to support the board’s non-commercial activities and its role in managing water supply and drainage in Tamil Nadu.
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
Notification No. 43/2024-Income Tax | dated: 22nd May, 2024
S.O. 2076(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, ‘Tamil Nadu Water Supply and Drainage Board, Chennai’ (PAN: AAALT0834F), a Board constituted under the Tamil Nadu Water Supply and Drainage Board Act, 1970 (Tamil Nadu Act of 1971), in respect of the following specified income arising to the said Board, namely:-
(a) Water charges for supply of water to recover the maintenance cost;
(b) Centage charges received from local bodies work like water supply scheme and sewerage scheme to compensate for establishment charges;
(c) Investigation and Detailed Project Report preparation charges for water supply and drainage scheme for establishment charges;
(d) Interest earned on Bank Deposits.
2. This notification shall be effective subject to the conditions that Tamil Nadu Water Supply and Drainage Board, Chennai-
(a) shall not engage in any commercial activity;
(b) its activities and the nature of the specified income shall remain unchanged throughout the financial year(s); 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 applicable for assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029 relevant for the financial years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028 respectively.
[Notification No. 43/2024, F. No.300196/32/2024-ITA-I]
CASTRO JAYAPRAKASH T., Under Secy.
