Introduction: The Ministry of Finance, under the purview of the Central Board of Direct Taxes, has issued an important notification, Notification No. 93/2023-Income Tax, dated 26th October, 2023. This notification holds significance for ‘Telangana Building and Other Construction Workers Welfare Board’ and its tax-related aspects.
Detailed Analysis:
The Ministry of Finance’s notification, as per the authority vested in clause (46) of section 10 of the Income-tax Act, 1961, brings ‘Telangana Building and Other Construction Workers Welfare Board’ into the spotlight. This board, established by the Government of Telangana, is recognized for specific income arising to the board, which includes:
- Cess received.
- Registration and renewal fee collection from building and other construction workers.
- Interest received on bank deposits.
However, this recognition comes with certain conditions:
- The board shall not engage in any commercial activity.
- The nature of its activities and the specified income shall remain unchanged throughout the financial year.
- The board is required 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.
This notification is effective for the assessment year 2023-2024, relevant to the financial year 2022-2023, and is thus deemed to be applied retrospectively.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 93/2023-Income Tax | Dated : 26th October, 2023
S.O. 4700(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, ‘Telangana Building and Other Construction Workers Welfare Board (PAN AAEAT9368D), a board established by the Government of Telangana, in respect of the following specified income arising to that board, namely:
(a) Cess received;
(b) Registration and renewal fee collection from the Building and other construction workers; and
(c) Interest received on bank deposits.
2. This notification shall be effective subject to the conditions that Telangana Building and Other Construction Workers Welfare Board, –
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial year; 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 year 2023-2024 relevant to the financial year 2022-2023.
[Notification No. 93/2023 F. No. 196/26/2 022-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.
