District Mineral Foundation Trust: Income Tax Exemption Notification 2023

Introduction: The Central Board of Direct Taxes has issued Notification No. 66/2023, dated 23rd August, 2023, under section 10(46) of the Income-tax Act, 1961. This notification pertains to the classification of ‘District Mineral Foundation Trust’ as a class of Authority for specified incomes arising to the Authority. Let’s delve into the details of this notification.

Detailed Subheading-Wise Analysis:

1. Specified Incomes: The notification designates ‘District Mineral Foundation Trust,’ constituted by the Government under section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, as a ‘class of Authority.’ The following specified incomes arising to the Authority are covered:

• Contribution by lease holders to DMF as per Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015.
• Interest received from lease holders for late payment.
• Penalty charged to lease holders.
• Income from interest on fund available under DMF.
• Interest received on Savings Bank Accounts.
• Interest received on Excess Fund invested in Term Deposit.

2. Conditions for Application: The notification comes with certain conditions for the application of the classification:

• District Mineral Foundation Trust shall not engage in any commercial activity.
• The activities and nature of the specified income must remain consistent throughout the financial years.
• The Trust shall file an income tax return as per the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. Effective Assessment Years: This notification’s effect extends to the assessment year 2023-2024 to 2027-2028, which is relevant to the financial year 2022-2023 to 2026-2027. This applies to the Trusts listed in the provided schedule.

Schedule: The notification provides a schedule listing the District Mineral Foundation Trusts along with their respective names, states, and PAN (Permanent Account Number).

Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)

Notification No. 66/2023-Income Tax | Dated: 23rd August, 2023

S.O. 3776(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, ‘District Mineral Foundation Trust’ as specified in the schedule to this notification, constituted by Government in exercise of powers conferred under section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015) as a ‘class of Authority’ , in respect of the following specified income arising to that Authority, namely :-

(a) Contribution by lease Holder to DMF as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015;

(b) Interest received from lease holders for late payment;

(c) Any Penalty charged to lease holder;

(d) Income from Interest on fund available under DMF;

(e) Interest received on Saving Bank Accounts; and

(f) Interest received on Excess Fund invested in Term Deposit.

2. This notification shall be effective subject to the conditions that each of the District Mineral Foundation Trust-

(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 the assessment year 2023-2024 to 2027-2028 relevant to financial year 2022-2023 to 2026-2027 in respect of Trusts mentioned in column (2) of the below mentioned schedule.

SCHEDULE

[Notification No. 66/2023 /F.No.300196/36/2017-ITA-I(Pt.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.