The Ministry of Finance, through the Central Board of Direct Taxes, has issued Notification No.10/2024 on 8th January, 2024, under the powers of section 10(46) of the Income-tax Act, 1961. This notification pertains to the income tax exemption granted to the Chennai Metropolitan Water Supply and Sewerage Board (PANA AALM0037B), a Board constituted by the Government of Tamil Nadu.
The notification outlines the specified incomes for which the exemption is applicable. These include grants, subsidies from the government, centage receipts from municipalities and local authorities, receipts from taxes, charges, fees, fines, forfeitures, penalties, income from the sale of farm produce, rent from properties, and various other miscellaneous incomes such as interest on deposits, staff welfare investments, and more.
Conditions for the exemption are also specified, emphasizing that the Chennai Metropolitan Water Supply and Sewerage Board should refrain from engaging in any commercial activities. Additionally, the nature of the specified income and the Board’s activities must remain unchanged throughout the financial years. The Board is required to file a return of income in accordance with the provisions of section 139(4C)(g) of the Income-tax Act, 1961.
The effective period of this notification is deemed to be applied for assessment years 2020-2021, 2021-2022, 2022-2023, and 2023-2024, relevant to the financial years 2019-2020, 2020-2021, 2021-2022, and 2022-23. The explanatory memorandum assures that no individual is adversely affected by the retrospective effect of this notification.
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Ministry of Finance
(Department of Revenue)
(Central Board of Direct Taxes)
Notification No. 10/2024 – Income Tax | Dated : 8th January, 2024
S.O. 90(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, ‘Chennai Metropolitan Water Supply and Sewerage Board’ (PANA AALM0037B), a Board constituted by the Government of Tamil Nadu, in respect of the following specified income arising to that Board, namely:
(a) Grant and subsidies received from Government;
(b) Centage receipts received from Municipalities, Local authority and Government;
(c) Receipts of taxes, charges, fees, fines, forfeitures, penalties, etc. by whatever name called;
(d) Income from sale of farm produce, rent from properties;
(e) Other miscellaneous income such as interest on deposits with TNEB, GPF/CPS investments, staff welfare investments, Debt Reserve Fund, Fixed Asset renewal fund, advance to staff and contractors, sale of assets/scrap; and
(f) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Chennai Metropolitan Water Supply and Sewerage Board:-
(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 2020-2021, 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2019-2020, 2020-2021, 2021-2022 and 2022-23.
[Notification No.10/2024 /F.No. 300196/34/201 9-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.
