Introduction: The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has issued Notification No. 6/2024 -Income Tax on 5th January, 2024. This notification grants income tax exemptions to the ‘District Legal Service Authority Union Territory Chandigarh’ under clause (46) of section 10 of the Income-tax Act, 1961.
Detailed Analysis:
1. Specified Income Sources: The notification specifies various income sources eligible for exemption, including grants from the Punjab and Haryana High Court, Central Authority, grants or donations from the Central or State Governments, amounts received under court orders, fees from recruitment application, and interest on bank deposits.
2. Conditions for Exemption: To avail the exemption, the District Legal Service Authority must adhere to certain conditions. These include refraining from engaging in commercial activities, maintaining the nature of specified income, and filing income tax returns as per the provisions of the Income-tax Act, 1961.
3. Effective Period: The notification applies to assessment years 2021-2022, 2022-2023, and 2023-2024, corresponding to financial years 2020-2021, 2021-2022, and 2022-2023, respectively. The retrospective effect ensures continuity in tax benefits.
Conclusion: In conclusion, Notification No. 6/2024 by the Ministry of Finance brings significant relief to the District Legal Service Authority Union Territory Chandigarh, providing clarity on eligible income sources and ensuring compliance with specified conditions. This move is aimed at promoting the effective functioning of legal service authorities without imposing undue tax burdens.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 6/2024 -Income Tax |Dated: 5th January, 2024
S.O. 80(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, ‘District Legal Service Authority Union Territory Chandigarh’ (PAN: AAAGD1545A), an Authority constituted by the Administrator, Union Territory, Chandigarh under the Legal Services Authority Act, 1987 (Central Act 39 of 1987), in respect of the following specified income arising to the said Authority, as follows:
(a) Grants received from the Punjab and Haryana High Court, Central Authority e. National Legal Services Authority and State Authority constituted under Legal Services Authorities Act, 1987;
(b) Grants or donation received from the Central Government or the State Government of Punjab/Haryana for the purpose of the Legal Services Authorities Act, 1987;
(c) Amount received under the order of the court;
(d) Fees received as recruitment application fee; and
(e) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that District Legal Service Authority Union Territory Chandigarh –
(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 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.
[Notification No. 6/2024 F. No. 196/8/2021-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.
