Introduction: The Ministry of Finance, Department of Revenue, through the Central Board of Direct Taxes, has issued Notification No. 1/2024- Income Tax on 2nd January 2024. This notification pertains to the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961, notifying ‘Bellary Urban Development Authority’ for specified income. This article delves into the key aspects and implications of the notification.
Detailed Analysis:
1. Specified Income Categories: The notification outlines specific income categories for Bellary Urban Development Authority, including revenue from layout development, private layout betterment charges, civil supervision charges, lease from civic amenities sites, and interest earned on banks.
2. Conditions for Applicability: The effectiveness of this notification is subject to conditions, ensuring that Bellary Urban Development Authority refrains from engaging in commercial activities. Additionally, the nature and activities related to the specified income must remain unchanged throughout the relevant financial years.
3. Return of Income Filing: The authority is mandated to file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act.
4. Deemed Application Period: The notification is deemed to have been applied for assessment years 2021-2022, 2022-2023, and 2023-2024, relevant to the financial years 2020-2021, 2021-2022, and 2022-2023, respectively.
Conclusion: In conclusion, Notification No. 1/2024 by the Ministry of Finance establishes Bellary Urban Development Authority’s eligibility for specific income categories under the Income-tax Act, 1961. The conditions and deemed application period emphasize compliance and stability in the specified income nature. Stakeholders and taxpayers should remain informed about these developments for effective financial planning and adherence to regulatory requirements.
Explanatory Memorandum: The explanatory memorandum certifies that no adverse effects are imposed by giving retrospective effect to this notification, providing reassurance regarding its implementation.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 1/2024- Income Tax | Dated: 2nd January, 2024
S.O. 40(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, ‘Bellary Urban Development Authority’ (PAN AAALB0037A), an Authority constituted by the State Government of Karnataka, in respect of the following specified income arising to that Authority, namely:
(a) Revenue from own layout development;
(b) Collections on account of private layout betterment charges;
(c) Civil supervision charges;
(d) Lease from civic amenities sites; and
(e) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Bellary Urban Development Authority-
(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, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.
[Notification No. 1/2024 F. No. 300196/26/2021-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.
