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Section 10(23AAA)  – Exemptions – Income received by any person on behalf of fund established for welfare of employees or their dependents- Notified purposes/conditions for establishment of fund

As per Section 10(23AAA) of the Income-Tax Act, the income received by any person on behalf of a Fund established for the welfare of employees or their dependents, is exempted for the purposes notified by the Board.

CBDT vide [S.O.672(E) (F. No. 142/16/95-TPL)], DATED 27-7-1995 had notified the following purposes.

(1) cash benefits to a member of the fund,–

(a) on superannuation, or

(b) in the event of his illness or illness of his spouse or dependent children, or

(c) to meet the cost of education of his dependent children ; or

(2) cash benefits to the dependants of a member of the fund in the event of the death of such member.

Now, a new clause (d) is added vide Notification No.33/2011 dated- 03.06.2011 to para 1 above to include, “ to meet the cost of annual medical tests or medical check-ups of the member, his spouse and dependent children ”

Section 10(23AAA) Of The Income-Tax Act, 1961 – Exemptions – Income Received By Any Person On Behalf Of Fund Established For Welfare Of Employees Or Their Dependents – Notified Purposes/Conditions For Establishment Of Fund – Amendment In Notification No.S.O.672(E), Dated 27-7-1995

Notification No.33/2011[F.No.197/12/2010-ITA-I]/S.O. 1295(E), Dated 3-6-2011

In exercise of the powers conferred by clause (23AAA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendments in the notification of Government of India, Ministry of Finance, number S.O. 672(E) dated the 27th July, 1995, namely :—

In the said notification, in paragraph (1), after clause (c), the following clause shall be inserted, namely:—

(d)  to meet the cost of annual medical tests or medical checkups of the member, his spouse and dependent children.


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