Introduction: Notification No. 67/2023, dated 23rd August, 2023, issued by the Central Board of Direct Taxes, addresses the classification of Punjab Building and Other Construction Welfare Board under clause (46) of section 10 of the Income-tax Act, 1961. This notification focuses on specified incomes and conditions for the board’s classification.
Detailed Subheading-Wise Analysis:
1. Specified Incomes: The notification designates the Punjab Building and Other Construction Welfare Board (PAN: AAALP0698P) as a body constituted by the State Government of Punjab, for the purpose of clause (46) of section 10. The following specified incomes arising to the Board are covered:
- Labour Cess collection.
- Contribution collection.
- Interest earned on Labour Cess and Contribution collection.
2. Conditions for Application: The provisions of this notification come with certain conditions for the application of the classification:
- Punjab Building and Other Construction Welfare Board shall not engage in any commercial activity.
- The activities and nature of the specified income must remain consistent throughout the financial years.
- The Board shall file returns of income as per the provisions of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
3. Effective Assessment Years: The notification’s effect extends to the assessment years 2022-2023 and 2023-2024, which are relevant for the financial years 2021-2022 and 2022-2023, respectively.
Conclusion: The Income Tax Notification No. 67/2023 outlines the classification of the Punjab Building and Other Construction Welfare Board under section 10(46) of the Income-tax Act, 1961. The notification aims to ensure that the board’s specified incomes are subject to appropriate tax treatment while maintaining the integrity of its operations. The specified conditions help establish the framework within which the board must function to avail the benefits provided by the notification.
Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)
Notification No. 67/2023-Income Tax| Dated: 23rd August, 2023
S.O. 3777(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, Punjab Building and Other Construction Welfare Board (PAN: AAALP0698P), a body constituted by the State Government of Punjab, in respect of the following specified income arising to that Board, namely:-
(a) Labour Cess collection;
(b) Contribution collection; and
(c) Interest earned on (a) and (b) above.
2. The provisions of this notification shall be effective subject to the conditions that Punjab Building and Other Construction Welfare Board,-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income remain unchanged throughout the financial years; and
(c) shall file returns of income in accordance with the provision of clause (g) of sub-section (4C) section 139 of the Income-tax Act, 1961.
3. This notification shall be deemed to have been applied for the for the A.Y 2022-2023 and A.Y 2023-2024 relevant for F.Y. 2021-2022 and 2022-2023 respectively.
[Notification No. 67/2023/F.No.300196/4/2022-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.
