Introduction: The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has issued Notification No. 3/2024-Income Tax on January 2, 2024. This notification pertains to the exemption granted to the Madhya Pradesh Professional Examination Board, Bhopal, under clause (46) of section 10 of the Income-tax Act, 1961.
Detailed Analysis: The notification specifies two categories of income for which the exemption is granted to the Madhya Pradesh Professional Examination Board, Bhopal. Firstly, the fees collected for examinations and the sale of application forms are included. Secondly, the interest earned on bank deposits is also considered as part of the specified income.
To ensure the continued eligibility for this exemption, the notification imposes certain conditions on the Board. The Madhya Pradesh Professional Examination Board must refrain from engaging in any commercial activity. Furthermore, the nature of its activities and the specified income must remain consistent throughout the financial years.
Additionally, the Board is required 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, 1961. This ensures transparency and compliance with the tax regulations.
The effective application of this notification is specified for the assessment year 2023-2024 relevant to the financial year 2022-2023, providing clarity on the retrospective effect.
Conclusion: In conclusion, Notification No. 3/2024 serves to elucidate the income tax implications for the Madhya Pradesh Professional Examination Board. By granting specific exemptions and outlining conditions, the notification aims to ensure fair and transparent taxation. Stakeholders and taxpayers should be aware of these provisions to navigate the evolving landscape of income tax regulations. The explanatory memorandum certifies that the retrospective effect of this notification does not adversely affect any individual, adding a layer of assurance to its implementation.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 3/2024- Income Tax | Dated: 2nd January, 2024
S.O. 42(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, Madhya Pradesh Professional Examination Board, Bhopal (PAN- AAAGP1792B), a Board constituted by the Madhya Pradesh Government, in respect of the following specified income arising to that body, namely:
a) Fees of Examination & Sale of Application Form; and
b) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Madhya Pradesh Professional Examination Board, Bhopal:-
(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 year 2023-2024 relevant to the financial year 2022-2023.
[Notification No. 3/2024/ F. No. 300196/29/2022-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.
