The Central Board of Direct Taxes (CBDT) has issued new guidelines for filing applications under Section 10(46A) of the Income-tax Act, 1961. This section, added by the Finance Act, 2023, provides tax exemptions for certain bodies, authorities, boards, trusts, or commissions established under Central or State Acts, specifically those involved in public housing, city planning, or public benefit activities. To streamline and standardize the application process, the CBDT has mandated that applications must be submitted to the Principal Commissioner/Commissioner of Income-tax or Principal Director/Director of Income-tax, as applicable. Applicants are required to use the prescribed format (Annexure-A) and provide all necessary documents along with an acknowledgment receipt confirming submission to the jurisdictional office. This move aims to reduce procedural delays and ensure consistent processing of applications.
F.No.196/82/2024-ITA-I
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(ITA-I division)
North Block, New Delhi
Dated, the 20th August, 2024
Subject:- Standardizing the process of filing application under section 10(46A) of the Income-tax Act, 1961- regarding:-
The Finance Act, 2023 inserted clause (46A) in section 10 of the Income-tax Act, 1961 (the Act’) to exempt any income arising to a body or authority or Board or Trust or Commission, not being a company, which has been established or constituted by or under a Central or State Act with one or more of the following purposes, namely:-
(i) dealing with and satisfying the need for housing accommodation;
(ii) planning, development or improvement of cities, towns and villages;
(iii) regulating, or regulating and developing, any activity for the benefit of the general public, or
(iv) regulating any matter, for the benefit of the general public, arising out of the object for which it has been created; and
It has also been provided that such body or authority or Board or Trust or Commission, referred above is required to be notified by the Central Government in the official Gazette for the purposes of this Clause.
2. In order to standardize the manner of filing application u/s 10(46A) of the Act and to avoid procedural delays in processing the same, applicants are advised to file the applications alongwith requisite enclosures to the Pr. Commissioner/ Commissioner of Income-tax/Pr. Director/ Director of Income-tax under whose jurisdiction their cases fall. The applicants are further advised to adopt the Format laid down as per Annexure-A enclosed herewith while submitting the application alongwith all its enclosures to the Under Secretary (ITA-I), Central Board of Direct Taxes, accompanied by the acknowledgement receipt forwarding evidence of having furnished the application in the office of jurisdictional Pr.CIT/CIT/Pr.DIT/DIT.
Encl: as above.
Yours faithfully,
(Ashwani Kumar)
DCIT (OSD), ITA-I, CBDT
Email id:- usital-cbdtAgov.in
