Notification under section 10(46) in case of Chandigarh Building and Other Construction Workers Welfare Board, Chandigarh
Introduction: Discover the details of Notification No. 59/2023 issued by the Ministry of Finance, providing insights into tax exemption for the Chandigarh Building and Other Construction Workers Welfare Board. This notification, dated 10th August 2023, highlights the specifics of the exemption, its scope, and relevant conditions.
Analysis: The Central Board of Direct Taxes, under the powers granted by clause (46) of section 10 of the Income-tax Act, 1961, has announced the tax exemption for the ‘Chandigarh Building and Other Construction Workers Welfare Board.’ This Board, established by the Administrator of Union territory, Chandigarh, is entitled to specific income exemptions as outlined in the notification. Notably, the exemption encompasses proceeds of Cess collected under the Building & Other Construction Workers Welfare Cess Act, 1996, contributions, registration fees, and interest earned. However, certain conditions apply to maintain the eligibility for exemption, such as refraining from commercial activities, keeping the nature of specified income unchanged, and adhering to income tax return filing requirements.
Conclusion: In conclusion, Notification No. 59/2023 offers valuable insights into the tax exemption status of the Chandigarh Building and Other Construction Workers Welfare Board. This notification aims to promote the welfare of construction workers by providing financial relief to the Board responsible for their well-being. Adherence to the outlined conditions ensures the continuation of the tax benefits. Understanding these details is crucial for both the Board and beneficiaries seeking to make the most of this exemption while staying compliant with relevant regulations.
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Ministry Of Finance
(Department Of Revenue)
(Central Board of Direct Taxes)
New Delhi
Notification No. 59/2023-Income-tax | Dated: 10th August, 2023
S.O. 3580(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, ‘Chandigarh Building and Other Construction Workers Welfare Board, Chandigarh’(PAN AALC0595J), a Board constituted by the Administrator, Union territory, Chandigarh, in respect of the following specified income arising to the said Board, as follows:
(a) Proceeds of the Cess collected under the Building & Other Construction Workers Welfare Cess Act, 1996 (28 of 1996) and rules made thereunder;
(b) Contribution and registration fees paid by the Beneficiaries under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and rules made thereunder; and
(c) Interest earned on (a) & (b) above.
2. This notification shall be effective subject to the conditions that Chandigarh Building and Other Construction Workers Welfare Board, Chandigarh –
(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 2021-2022 to 2023-2024 relevant for the financial years 2020-2021 to 2022-2023 respectively.
[Notification No. 59 /2023 F. No. 300196/17/2020-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.
