The Ministry of Finance, via the Central Board of Direct Taxes, issued Notification No. 122/2025-Income Tax on July 22, 2025. This notification, under Section 10(46) of the Income-tax Act, 1961, grants income tax exemption to the Andhra Pradesh Building and Other Construction Workers Welfare Board (PAN: AAALT1405A). The exemption applies to specific income sources: cess received, registration and renewal fees from workers, and interest earned on bank deposits. This exemption is conditional on the Board not engaging in commercial activities, maintaining unchanged activities and income nature, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961. The notification is effective retrospectively for assessment years 2019-2020 through 2023-2024, covering financial years 2018-2019 to 2022-2023. An explanatory memorandum clarifies that no adverse effects arise from this retrospective application.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 122/2025 – Income Tax | Dated : 22nd July, 2025
S.O. 3363(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, “Andhra Pradesh Building and Other Construction Workers Welfare Board” (PAN: AAALT1405A), a Board constituted by Government of Andhra Pradesh, in respect of the following specified income arising to the said Board, as follows:
(a) Cess received;
(b) Registration & Renewal fee received/collected from the building and other Construction Workers; and
(c) Interest received on bank deposits.
2. This notification shall be effective subject to the conditions that Andhra Pradesh Building and Other Construction Workers Welfare Board –
(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 2019-2020, to 2023-2024 relevant for the financial years 2018-2019 to 2022-2023.
[Notification No. 122/2025/F. No. 300196/18/2019-ITA-I]
MEENAKSHI SINGH, Dy. Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect to this notification.
