The Central Board of Direct Taxes, through Notification No. 95/2026–Income Tax dated 23rd July, 2026 [S.O. 4047(E)], issued under section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025, has notified the Kerala Headload Workers Welfare Board, Kochi (PAN AAAJK1176F) for the purposes of section 10(46) of the Income-tax Act, 1961. The notification specifies exempt income comprising grants-in-aid and loans from Government, levy collected under the Kerala Headload Workers Act, 1978 and related rules and schemes, registration fees from beneficiaries, employer deposits under the 1983 Scheme, members’ contributions, interest on loans and advances to staff and workers, wages received from employers under paragraphs 24(a) and 24(b) of the 1983 Scheme, and interest earned on these receipts. The exemption is subject to the conditions that the Board does not engage in commercial activity, its activities and specified income remain unchanged throughout the financial years, and it files its return of income under section 139(4C)(g) of the Income-tax Act, 1961. The notification is deemed applicable for Assessment Years 2025-26 and 2026-27, and non-compliance may result in penal action and withdrawal of the exemption.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 95/2026-Income Tax | Dated: 23rd July, 2026
S.O. 4047(E).— Whereas, section 10 (46) of the Income-tax Act, 1961 (43 of 1961) provided for exemption of specified income of certain bodies or authorities or Boards or Trusts or Commissions as may be notified by the Central Government in the Official Gazette for the purposes of that section;
And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536 (1) of the Income-tax Act, 2025 (30 of 2025);
And whereas, section 536(2)(a) and (b) of the Income-tax Act, 2025 (30 of 2025), inter alia, provides that irrespective of the repeal of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act of 1961) and subject to sub-section (4) thereof, nothing shall affect-
(i) the previous operation of the provisions of the Act of 1961 and any order or anything duly done or suffered
thereunder; or
(ii) any right, privilege, obligation or liability acquired, accrued or incurred under the Act of 1961 or orders under that Act;
And whereas, section 536(2)(c) of the Income-tax Act, 2025 (30 of 2025) provides that the provisions of the Act of 1961 shall continue to apply to any proceeding pending on the date of commencement of the Income-tax Act, 2025 (30 of 2025) and to any proceedings initiated on or after the 1st April, 2026 (including notices, assessment, reassessment, recomputation, rectification, penalty, reference, revision and appeals) in respect of any tax year beginning before the 1st April, 2026 and such proceedings shall be carried out as per the procedure specified in the Act of 1961;
And whereas, section 536(2)(e) of the Income-tax Act, 2025 (30 of 2025) provides that any proceeding pending on the date of its commencement before any income-tax authority or any other authority constituted under the repealed Income-tax Act, Appellate Tribunal, or any court, by way of application, appeal, reference or revision or by any other means, shall be continued and disposed of as if this Act had not been enacted;
Now, therefore, in pursuance of the provisions of section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025 (30 of 2025), the Central Government hereby notifies, for the purposes of section 10 (46) of the Act of 1961, “Kerala Headload Workers Welfare Board, Kochi (PAN AAAJK1176F)”, a board constituted by the State Government of Kerala, in respect of the following specified income arising to that board, namely:-
(a) Amount received in the form of grants-in-aid and loan from Government;
(b) Levy collected under the Kerala Headload Workers Act, 1978 (20 of 1980), Kerala Headload Workers rules 1981 and schemes there under;
(c) Registration fees collected from members registered with the board as beneficiaries;
(d) Sums received as deposit from employers as per Para 27 of Kerala Headload Workers (regulation of employment and welfare) Scheme 1983 formulated under section 13 of the Kerala Headload Workers Act, 1978 (20 of 1980);
(e) Contribution from the members as defined in the Kerala Headload Workers Act, 1978 (20 of 1980), Kerala Headload Workers Rules 1981 and Scheme there under;
(f) Interest on loans and advances given to staff of the board and workers;
(g) Sums received as wages from employers as per Para 24(a) and 24(b) of Kerala Headload Workers (Regulation of employment and welfare) Scheme 1983 formulated under section 13 of the Kerala Headload Workers Act, 1978 (20 of 1980); and
(h) Interest earned on (a) to (g) above.
2. This notification shall be effective subject to the conditions that Kerala Headload Workers Welfare Board, Kochi–
(a) shall not engage in any commercial activity;
(b) its 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 provisions of 139(4C)(g) of the Act of 1961.
3. Failure to comply with these conditions shall result in the initiation of penal actions under the provisions of the Act of 1961, and withdrawal of exemption granted u/s 10(46) of the Act of 1961.
4. This notification shall be deemed to have been applied for the assessment years 2025-26 and 2026-27 relevant to the financial years 2024-25 and 2025-26.
[Notification No. 95/2026/F. No.300196/78/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that the interests of no person are being adversely affected by giving retrospective effect [with effect from the year of its application filed before the Central Board of Direct Tax or Income-tax Department] to this notification.
