Ministry of Finance Grants Tax Exemptions to Godavari River Management Board, Hyderabad

Case Name:

Notification No. 102/2023- Income-Tax - Godavari River Management Board, Hyderabad

Key Takeaways:

1. Nature of specified income includes grants/subsidies from the Central Government, grants/subsidies from the State Governments of Andhra Pradesh and Telangana, and interest from bank deposits.
2. Tax exemption is subject to conditions, including the restriction that the Board should not engage in any commercial activity, and the specified income’s nature must remain unchanged throughout the covered financial years.
3. The Board is obligated to file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 (of Income Tax Act, 1961) to maintain the tax exemption.
4. The notification is effective for assessment years 2020-21 to 2023-2024, applying retrospectively to cover financial years 2019-20 to 2022-2023.

Synopsis:

The Notification No. 102/2023-Income Tax dated 5th December, 2023, issued by the Ministry of Finance. This notification grants significant tax exemptions to the Godavari River Management Board, Hyderabad, under section 10(46) (of Income Tax Act, 1961). Let’s break down the key points based on your input:

Detailed Analysis

1. Nature of Specified Income:

The specified income for the Godavari River Management Board includes grants/subsidies from the Central Government, grants/subsidies from the State Governments of Andhra Pradesh and Telangana, and interest from bank deposits.

2. Conditions for Tax Exemption:

The tax exemption is subject to specific conditions, including the restriction that the Board should not engage in any commercial activity. Additionally, the nature of the specified income must remain unchanged throughout the financial years covered by the notification.

3. Filing Requirements:

The Board is obligated to file a return of income in accordance with the provisions of clause (g) of sub-section (4C) of section 139 (of Income Tax Act, 1961) to maintain the tax exemption.

4. Effective Period:

The notification is effective for assessment years 2020-21 to 2023-2024 and applies retrospectively, covering financial years 2019-20 to 2022-2023.

Notification Details

• Issuing Authority: Ministry of Finance, Government of India
• Notification No.: 102/2023- Income-Tax
• Date of Issue: 5th December, 2023
• Effective From: Assessment years 2020-21 to 2023-2024
• Specified Entity: Godavari River Management Board, Hyderabad
• PAN (Permanent Account Number): AAAGG1473Q

Explanatory Memorandum

The explanatory memorandum certifies that no person is being adversely affected by giving retrospective effect to this notification.

This notification is significant as it provides tax exemptions to the specified entity and outlines the nature of specified income, conditions for tax exemption, filing requirements, and the effective period.

FAQ

Q1: What is the nature of specified income for the Godavari River Management Board?

A1: The specified income includes grants/subsidies from the Central Government, grants/subsidies from the State Governments of Andhra Pradesh and Telangana, and interest from bank deposits.

Q2: What are the conditions for tax exemption?

A2: The tax exemption is subject to specific conditions, including the restriction that the Board should not engage in any commercial activity, and the nature of the specified income must remain unchanged throughout the financial years covered by the notification.

Q3: What is the effective period of the notification?

A3: The notification is effective for assessment years 2020-21 to 2023-2024, applying retrospectively to cover financial years 2019-20 to 2022-2023.