Executive Summary:
This notification, issued by the Central Board of Direct Taxes, notifies the Kerala Headload Workers Welfare Board under Section 10(46) of the Income-tax Act, 1961. It specifies the income of the board that is exempt from income tax. The notification is effective from the financial year 2014-15 and applies up to the financial year 2018-19.
Key Points / Main Content:
Tax Exemption:
* The notification grants income tax exemption to the Kerala Headload Workers Welfare Board on specified income.
* The exemption applies to income arising from:
* Levy collected under the Kerala Headload Workers Act, 1978.
* Registration fees from registered members.
* Grants-in-aid and loans from the Government.
* Interest income from investments.
* Deposits from employers as per the Kerala Headload Workers regulation of employment and welfare Scheme 1983.
* Contributions from members under the Kerala Headload Workers Act, 1978.
* Interest on loans and advances to staff and workers.
* Wages received from employers as per the Kerala Headload Workers regulation of employment and welfare Scheme 1983.
Conditions for Exemption:
* The Kerala Headload Workers Welfare Board must not engage in any commercial activity.
* The activities and the nature of the specified income must remain unchanged throughout the financial years.
* The Board must file income returns as per Section 139(4C)(g) of the Income-tax Act, 1961.
Effective Period:
* The notification is effective from the financial year 2014-15.
* It applies to the financial years 2015-16, 2016-17, 2017-18, and 2018-19.
Impact Analysis:
Kerala Headload Workers Welfare Board:
* Impact: Specified income of the Board is exempt from income tax, reducing its tax liabilities and potentially freeing up funds for welfare activities.
* Action Required: Ensure compliance with the conditions of the notification, including refraining from commercial activities, maintaining the nature of specified income, and filing income tax returns as required.
Central Board of Direct Taxes:
* Impact: The CBDT is responsible for administering and overseeing the implementation of the notification.
* Action Required: Monitor the Kerala Headload Workers Welfare Board's compliance with the conditions of the notification.
Government of Kerala:
* Impact: As the constituting body of the Kerala Headload Workers Welfare Board, the Government of Kerala may see a more financially stable Board capable of fulfilling its welfare objectives.
* Action Required: Ensure the Kerala Headload Workers Welfare Board is aware of the requirements for continued compliance and monitor its activities to ensure commercial activities are not undertaken.
Employers and Employees under the Kerala Headload Workers Welfare Scheme:
* Impact: Employers that deposit funds or pay wages according to the scheme are part of income that is tax exempt. Employees who receive wages or loans from the scheme also are under the umbrella of a now tax exempt fund.
* Action Required: Be aware of the change in tax status of the fund.
Key Entities Referenced
Income-tax Act, 1961: A central act of India which forms the backbone of the country's income tax laws.
Central Board of Direct Taxes: A body that is a part of the Department of Revenue in the Ministry of Finance, Government of India. It provides inputs for policy and planning related to direct taxes in India.
Ministry of Finance: A ministry in the Government of India responsible for the country's finances.
Department of Revenue: A department under the Ministry of Finance, Government of India.
Kerala Headload Workers Welfare Board: A body constituted by the Government of Kerala.
Kerala Headload Workers Act, 1978: A law enacted by the Kerala State Legislature related to headload workers.
Government of Kerala: The state government of Kerala, India.
New Delhi: The capital city of India where the notification was issued.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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No. 1870] NEW DELHI, TUESDAY, JULY 26, 2016/SRAVANA 4, 1938
ििििवववव(cid:3)(cid:3)(cid:3)(cid:3) मममम(cid:7)(cid:7)ंं(cid:7)(cid:7)ंं ााााललललयययय
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((((कककक(cid:12)(cid:12)(cid:12)(cid:12)(cid:13)(cid:13)(cid:13)(cid:13)ीीीीयययय (cid:16)(cid:16)(cid:16)(cid:16)(cid:17)(cid:17)(cid:17)(cid:17)यययय(cid:18)(cid:18)(cid:18)(cid:18) ककककरररर बबबबोोोोडडडड))(cid:22)(cid:22)))(cid:22)(cid:22)
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:4)द(cid:6)ली, 26 जुलाई, 2016
ककककाााा.... आआआआ.... 2222555522227777((((अअअअ)))).—आयकर अिधिनयम, 1961 (1961 का 43) क(cid:10) धारा 10 के खंड (46) (cid:14)ारा (cid:15)द(cid:16)
शि(cid:19)य(cid:21) का (cid:15)योग करत े (cid:26)ए क(cid:28)(cid:29) सरकार एतn~(cid:14)ारा उ(cid:19) खंड के उ#$े य क(cid:10) पू’त हते ू केरल हडै लोड व+स , वेलफेयर
बोड,, केरल सरकार (cid:14)ारा ग/ठत एक िनकाय को होन े वाली िन1िलिखत िविश2 आय के सबं ंध म(cid:28) अिधसूिचत करती
ह,ै आय का 7यौरा इस (cid:15)कार ह-ै
(क) केरल हडै लोड व+स, अिधिनयम, 1978 (1980 का 20) केरल हडै लोड व+स, िनयमावली, 1981 तथा
उनके अंतग,त :क(cid:10)म(cid:21) के अंतग,त वसूला गया कर;
(ख) लाभा’थय(cid:21) के =प म(cid:28) बोड, के साथ पंजीकृत सद:य(cid:21) स ेवसूला गया पंजीकरण शु(cid:6)क;
(ग) सरकार से सहायता अनुदान तथा ऋण के =प म(cid:28) (cid:15)ाC रािश;
(घ) िनवेश स े (cid:15)ाC आय का 7याज;
(ड़) केरल हडै लोड वक,स , अिधिनयम, 1978 (1980 का 20) क(cid:10) धारा 13 के अतं ग,त सDू बE केरल हडै लोड
वक,स , (रोजगार िविनयोजन एवं क(cid:6)याण), :क(cid:10)म 1983 के पैरा 27 के अनुसार िनयो(cid:19)ा से जमा के =प म(cid:28) (cid:15)ाC
रािश;
3735 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(च) केरल हडै लोड व+स , अिधिनयम, 1978 (1980 का 20) केरल हडै लोड व+स, िनयमावली 1981 तथा उसके
अंतग,त :क(cid:10)म(cid:21) म(cid:28) प/रभािषत (cid:4)कए अनुसार सद:य(cid:21) स े अंशदान;
(छ) बोड, के कम,चा/रय(cid:21) तथा कामगार(cid:21) को (cid:4)दए गए कजI तथा अिJम(cid:21) पर 7याज; और
(ज) केरल हडै लोड वक,स, अिधिनयम, 1978 (केरल अिधिनयम सं. 198 का 20) क(cid:10) धारा 13 के अंतगत,
सूDबE केरल हडै लोड वक,स, (रोजगार िविनयोजन एव ं क(cid:6)याण) :क(cid:10)म, 1983 के पैरा 24(क) तथा 24(ख) के
अनुसार िनयो(cid:19)ा से वेतन के =प म(cid:28) (cid:15)ाC रािश;
2. यह अिधसूचना िन1िलिखत शतI के अKयधीन (cid:15)भावी होगी (cid:4)क केरल हडै लोड व+स, वले फेयर बोड-,
(क) (cid:4)कसी भी Lावसाियक गितिविध म(cid:28) शािमल नहM होगा;
(ख) काय,कलाप और आय िवशेष क(cid:10) (cid:15)कृित िव(cid:16)ीय वषI के दौरान अप/रव’तत रहगे ी; और
(ग) आयकर अिधिनयम, 1961 क(cid:10) धारा 139 क(cid:10) उपधारा – 4(ग) के खंड (छ) के (cid:15)ावधान के अनुसार आय क(cid:10)
िववरणी दायर क(cid:10) जाएगी।
3. इस अिधसूचना को िव(cid:16) वष, 2014-15 म(cid:28) लागू माना जाएगा और िव(cid:16) वष , 2015-16, 2016-17,
2017-18 और 2018-19 के िलए लागू होगी।
[अिधसूचना सं. 63/2016/फा. सं.196/30/2015-आईटीए-I]
रोिहत गग,, उप सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(Central Board of Direct Taxes)
NOTIFICATION
New Delhi, the 26th July, 2016
S.O. 2527(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, Kerala Headload Workers
Welfare Board, a body constituted by Government of Kerala, in respect of the following specified income arising to that
Board, namely:-
(a) levy collected under the Kerala Headload Workers Act, 1978 (20 of 1980) Kerala Headload Workers rules 1981
and schemes there under;
(b) registration fees collected from members registered with the board as beneficiaries;
(c) amount received in the form of grants-in-aid and loan from Government;
(d) interest income received from investment;
(e) sums received as deposit from employers as per Para 27 of Kerala Headload Workers (regulation of
employment and welfare) Scheme 1983 formulated under section 13 of the Kerala Headload Workers Act, 1978
(20 of 1980);
(f) contribution from the members as defined in the Kerala Headload Workers Act, 1978 (20 of 1980) Kerala
Headload Workers rules 1981 and schemes there under;¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3
(g) interest on loans and advances given to staff of the board and workers; and
(h) sums received as wages from employers as per Para 24(a) and 24(b) of Kerala Headload Workers (regulation of
employment and welfare) Scheme 1983 formulated under section 13 of the Kerala Headload Workers Act, 1978
(Kerala Act No.20 of 1980).
2. This notification shall be effective subject to the conditions that Kerala Headload Workers Welfare Board-
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income 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) section
139 of the Income-tax Act, 1961.
3. This notification shall be deemed to have been apply for the Financial Year 2014-15 and shall apply with
respect to the Financial Years 2015-16, 2016-17, 2017-18 and 2018-19.
[Notification No. 63/2016/F. No. 196/30/2015-ITA-I]
ROHIT GARG, Dy. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.