Ministry of Finance, through Notification No. 102/2023- Income-Tax Dated: 5th December, 2023, has granted significant tax exemptions to the Godavari River Management Board, Hyderabad under section 10(46) of Income Tax Act, 1961.
Detailed Analysis:
1. Nature of Specified Income: The notification outlines three key sources of specified income for the Godavari River Management Board – grants/subsidies from the Central Government, grants/subsidies from the State Governments of Andhra Pradesh and Telangana, and interest from bank deposits.
2. Conditions for Tax Exemption: The tax exemption is subject to specific conditions, including the restriction that the Board should not engage in any commercial activity. Additionally, the nature of the specified income must remain unchanged throughout the financial years covered by the notification.
3. Filing Requirements: To maintain the tax exemption, the Board is obligated 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.
4. Effective Period: The notification, effective for assessment years 2020-21 to 2023-2024, applies retrospectively, covering financial years 2019-20 to 2022-2023.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 102/2023- Income-Tax Dated: 5th December, 2023
S.O. 5169(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, ‘Godavari River Management Board, Hyderabad’ (PAN AAAGG1473Q), a Board constituted by Central Government in pursuance of section 85 of the Andhra Pradesh Re-Organization Act, 2014, in respect of the following specified income arising to the said Authority, as follows:
(a) Grants/Subsidies received from Central Government;
(b) Grants/Subsidies received from State Governments of Andhra Pradesh and Telangana; and
(c) Interest from bank deposits, including savings
2. This notification shall be effective subject to the conditions that Godavari River Management Board, Hyderabad –
(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 2020-21 to 2023-2024 relevant for the financial years 2019-20 to 2022-2023 respectively.
[Notification No. 102/2023 F. No. 300196/45/2019-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.
