Income Tax Notification No. 108/2024 Dated: 11th October, 2024 under section 10(46) of the Income Tax Act, 1961 in the case of Gujarat Water Supply and Sewerage Board, Gandhinagar
The Central Board of Direct Taxes (CBDT) issued Notification No. 108/2024 on October 11, 2024, granting tax exemptions to the Gujarat Water Supply and Sewerage Board (GWSSB), Gandhinagar under Section 10(46) of the Income Tax Act, 1961. The exemption applies to specified income, including government grants, water charges, centage, pension contributions, and other related incomes under the Gujarat Water Supply and Sewerage Board Act, 1978. Additionally, interest earned on bank deposits is exempt.
The tax exemption is subject to certain conditions: GWSSB must not engage in commercial activities, its income sources must remain unchanged, and it must file income returns per Section 139(4C)(g) of the Income Tax Act. The notification applies retrospectively for assessment years 2022-2023 and 2023-2024 and prospectively for 2024-2025 to 2026-2027, covering financial years from 2021-2026. The explanatory memorandum clarifies that no individual or entity is negatively impacted by the retrospective application of this notification.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 108/2024- Income Tax | Dated: 11th October, 2024
S.O. 4399(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, ‘Gujarat Water Supply and Sewerage Board’, Gandhinagar (PAN: AAALG5041P), a Board constituted by the Government of Gujarat in respect of the following specified income arising to that Board, namely:
a. Grant received from Government, Local Bodies and Other Government Agencies;
b. Centage at rates prescribed by the Gujarat Water Supply and Sewerage Board Act, 1978/Government of Gujarat;
c. Water charges (tariff fixed by the Government of Gujarat) collected from local bodies/village panchayats/ industries;
d. Receipts from Pension and gratuity contribution;
e. Other incomes such as investigation charges, Hire Charges, Sale of Tender Schedule and Rent received under the Gujarat Water Supply and Sewerage Board Act, 1978; and
f. Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Water Supply and Sewerage Board, Gandhinagar-
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 and 2023-2024 relevant for the financial years 2021-2022 and 2022-2023 and shall be applicable for assessment years 2024-2025, 2025-2026 and 2026-2027 relevant for the financial years 2023-2024, 2024-2025 and 2025-2026 respectively.
[Notification No. 108 /2024/ F. No. 300196/15/2021-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.
