Central Board of Direct Taxes (CBDT), through Notification No. 65/2025 dated June 19, 2025, has granted income tax exemption under clause (46) of section 10 of the Income-tax Act, 1961 to the Kerala Toddy Workers’ Welfare Fund Board (PAN: AACFK9819K). This exemption applies to specific incomes, including: (a) sums received under the Kerala Toddy Workers’ Welfare Fund Act, 1969; (b) member contributions as defined in section 2(b) of the Act; and (c) interest earned on bank deposits. The exemption is contingent upon the Board not undertaking any commercial activities, maintaining the same nature of income and operations during the financial years, and filing income tax returns under section 139(4C)(g) of the Act. The notification has retrospective effect from the assessment years 2022–23 to 2025–26 (financial years 2021–22 to 2024–25), and will also apply to the assessment year 2026–27 (financial year 2025–26). The accompanying explanatory memorandum states that no person will be adversely affected by the retrospective application of this notification.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 65/2025-Income Tax |Dated: 19th June, 2025
S.O. 2739(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, ‘Kerala Toddy Workers’ Welfare Fund Board’ (PAN: AACFK9819K), a Board established under the Kerala Toddy Workers’ Welfare Fund Act, 1969 (Kerala Act No. 22 of 1969), in respect of the following specified income arising to the said Board, namely:
(a) all sums received under Kerala Toddy Workers’ Welfare Fund Act, 1969 (Kerala Act No. 22 of 1969);
(b) contribution from the members as defined in clause (b) of section 2 of the Kerala Toddy Workers’ Welfare Fund Act, 1969 (Kerala Act No. 22 of 1969);
(c) interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that ‘Kerala Toddy Workers’ Welfare Fund 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 2022-2023 to 2025-2026 relevant for the financial years 2021-2022 to 2024-2025 and shall be applicable for assessment year 2026-2027 relevant for the financial year 2025-2026.
[Notification No. 65/2025/F. No. 300196/4/2019-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.
