CBDT Grants Tax Exemptions What Taxpayers Must Know
The CBDT grants tax exemptions under Section 10(46) regularly to certain bodies performing public functions. In its latest notifications, the Kerala Toddy Workers Welfare Fund Board and the Forum of Regulators have received this benefit — helping them manage welfare and regulatory activities free from income tax liability.
Who Got the New Exemptions?
Through Notification Nos. 76/2024 & 77/2024-Income Tax, the CBDT approved the following:
✅ Kerala Toddy Workers Welfare Fund Board (KTWWFB)
- Provides welfare benefits to toddy workers in Kerala
- Now exempt from income tax on specified income
✅ Forum of Regulators (FoR)
- A statutory body of power sector regulators
- Coordinates regulatory practices across India
- Granted tax exemption on income like grants, fees, and interest
These are notified under Section 10(46) of the Income Tax Act, 1961.
What is Section 10(46)?
- A special provision allowing exemption to notified bodies.
- Covers income specified in the notification, usually from government grants, fees, and statutory charges.
- Aims to support welfare boards, regulators, and other statutory bodies.
Key Conditions for Exemption
These exemptions come with conditions:
- The bodies must not engage in commercial activities beyond their statutory duties.
- Funds must be used solely for the stated objectives.
- Any income from non-specified sources will be taxable.
Non-compliance can lead to withdrawal of exemption.
Legal Reference
- Notification No. 76/2024-Income Tax (KTWWFB)
- Notification No. 77/2024-Income Tax (FoR)
- Both published by CBDT under Section 10(46)
- Refer incometaxindia.gov.in for official copies.
Expert View: Practical Takeaway
For similar statutory boards or associations:
✅ Ensure clear separation of exempt and non-exempt income.
✅ Maintain audited accounts and compliance with objectives.
✅ Consult a tax advisor to avoid issues in assessments.
Quick Comparison Table
| Body | Purpose | Exempted Income | Notification |
|---|---|---|---|
| Kerala Toddy Workers Welfare Fund Board | Workers’ welfare | Govt grants, interest | 76/2024 |
| Forum of Regulators | Regulatory coordination | Govt grants, fees, interest | 77/2024 |
FAQ
Q1: Can other boards apply for this exemption?
Yes, statutory boards can apply if they meet public welfare or regulatory criteria and follow the prescribed process.
Q2: Is all income exempt?
No. Only the specified income mentioned in the notification is exempt.
Summary (Google Snippet)
CBDT has granted tax exemptions under Section 10(46) to the Kerala Toddy Workers Welfare Fund Board and the Forum of Regulators. These bodies can now manage welfare and regulatory funds tax-free, provided they comply with conditions like non-commercial activities and exclusive use for public purposes.
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