**Executive Summary**
This notification, issued by the Ministry of Finance (Central Board of Direct Taxes) on January 21, 2026, grants exemption under section 10 of the Income-tax Act, 1961 to the specified income of the 'Karnataka State Rural Livelihood Promotion Society.' This notification applies retroactively and prospectively to the assessment years 2024-25 through 2028-29. Non-compliance may lead to penal action and withdrawal of exemption.
**Key Points / Main Content**
* **Exemption Notification**
* 'Karnataka State Rural Livelihood Promotion Society' is granted exemption under section 10 of the Income-tax Act, 1961.
* The exemption applies to the following income:
* Grants received from the Central Government.
* Grants received from the State Government of Karnataka.
* Interest earned on bank deposits.
* **Conditions for Exemption**
* The Society shall not engage in any commercial activity.
* The activities and nature of the specified income shall remain unchanged throughout the financial years.
* The Society shall file income tax returns as per the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
* **Validity Period**
* The notification applies to assessment years 2024-25, 2025-26 relevant to the financial years 2023-24, 2024-25 and shall be applicable for assessment years 2026-27, 2027-28 & 2028-29 relevant to the financial years 2025-26, 2026-27 & 2027-28.
* **Non-Compliance**
* Failure to comply with the conditions may result in penal actions and withdrawal of the exemption.
**Impact Analysis**
**Karnataka State Rural Livelihood Promotion Society**
* **Impact**
The Society's income, as specified, is exempt from Income Tax, which reduces their tax burden.
* **Action Required**
The society must adhere to all stipulated conditions, including refraining from commercial activities, maintaining the nature of specified income, and filing income tax returns.
**Central Board of Direct Taxes (CBDT)**
* **Impact**
The CBDT is responsible for administering and monitoring compliance with the notification.
* **Action Required**
Ensure the provisions are implemented, monitored, and enforced.
**Government of Karnataka**
* **Impact**
The Government is affected to the extent that its entity, the Karnataka State Rural Livelihood Promotion Society receives tax exemptions, and by extension impacts the exchequer.
* **Action Required**
Monitor the Society's operations to ensure adherence to the conditions specified in the notification.
Key Entities Referenced
Income-tax Act, 1961: The primary law governing income tax, referenced for clauses and sections.
Karnataka State Rural Livelihood Promotion Society: A body constituted by the Government of Karnataka, the recipient of the income specified in the notification.
MINISTRY OF FINANCE: The issuing ministry responsible for the notification.
2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ग) आयकर अजधजनयम, 1961 की धारा 139 की उपधारा (4सी) के खंड (िी) के प्रािधान के अनुसार आयकर
जििरणी िाजखल करेगा।
2.1 इन ितों का अनपु ालन न करन े पर आयकर अजधजनयम, 1961 के प्रािधानों के अंतगडत िंडात्मक कारडिाई िुरू की
िा सकती ह ैऔर अजधजनयम की धारा 10(46) के तहत िी गई छूट िापस ली िा सकती ह।ै
3. यह अजधसूचना जित्तीय िर्ड 2023-24, 2024-25 स े संबंजधत कर जनधाडरण िर्ड क्रमिः 2024-25, 2025-26
के जलए लागू मानी िाएगी और जित्तीय िर्ड 2025-26, 2026-27 और 2027-28 से संबजं धत कर जनधाडरण िर्ड क्रमिः
2026-27, 2027-28 और 2028-29 के जलए लाग ू होगी।
[अजधसूचना स.ं 11 /2026/फा. सं. 300196/65/2024-आईटीए-I]
हरिेि ससंह, अिर सजचि
स्ट्पष्टीकरण-ज्ञापन
यह प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को पूिडव्यापी प्रभाि िेने स े(बोड/ड जिभाग के समक्ष आिेिन दकए िान ेके िर् ड
स े प्रभािी) दकसी भी व्यजि पर प्रजतकूल प्रभाि नहीं पडगे ा।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st January, 2026
S.O. 332(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, ‘Karnataka State Rural
Livelihood Promotion Society’ (PAN AACAK0581H), a body constituted by the Government of Karnataka, in respect
of the following specified income arising to the said body namely, as follows:
(a) Grants received from the Central Government;
(b) Grants received from the State Government of Karnataka; and
(c) Interest earned on bank deposits.
2. This notification shall be effective subject to the conditions that Karnataka State Rural Livelihood Promotion
Society –
(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.[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
2.1 Failure to comply with these conditions may result in the initiation of penal actions under the provisions of the
Income Tax Act, 1961, and withdrawal of the exemption granted u/s 10(46) of the Act.
3. This notification shall be deemed to have been applied for the assessment years 2024-25, 2025-26 relevant to
the financial years 2023-24, 2024-25 and shall be applicable for assessment years 2026-27, 2027-28 & 2028-29 relevant
to the financial years 2025-26, 2026-27 & 2027-28.
[Notification No. 11 /2026/F. No. 300196/65/2024-ITA-I]
HARDEV SINGH, Under Secy.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect [with effect from the year of
application made before the Board/Department] to this notification.
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.