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Date: 12-Oct-2024 Category: Extra Ordinary State: Union Government Country: India

Notification u/s 10(46) of the Income Tax Act, 1961 in the case of Gujarat Water Supply and Sewerage Board, Gandhinagar

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • This notification from the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, India, exempts certain income of the Gujarat Water Supply and Sewerage Board (GWS&SB) from income tax under Section 10(46) of the Income Tax Act, 1961.

Key Changes

  • The GWS&SB, Gandhinagar (PAN: AAALG5041P), is granted tax exemption on specified income. This income includes grants from government entities, charges for water supply (as per prescribed tariffs), pension and gratuity contributions, and other income like investigation charges, hire charges, sale of tender schedules, and rent.
  • The exemption is subject to conditions: the GWS&SB cannot engage in commercial activities; its activities and income nature must remain unchanged across financial years; and it must file income tax returns as per Section 139(4C)(g) of the Income Tax Act, 1961.
  • The notification is retroactive, applying to assessment years 2022-2023 and 2023-2024 (relevant to financial years 2021-2022 and 2022-2023), and prospectively to assessment years 2024-2025, 2025-2026, and 2026-2027 (relevant to financial years 2023-2024, 2024-2025, and 2025-2026 respectively).
  • An explanatory memorandum clarifies that no individual is adversely affected by the retroactive application.

Impact Analysis

Impact on Gujarat Water Supply and Sewerage Board (GWS&SB)

  • Requirement to adhere strictly to the conditions of exemption, particularly avoiding commercial activities and maintaining consistent activities and income nature.

Impact on the Government of Gujarat

  • Indirect impact on state finances due to the reduced tax burden on the GWS&SB.

Impact on Local Bodies and Industries

  • No direct impact, but potentially indirect benefits from improved water services provided by the GWS&SB.

Impact on the Central Government

  • Potential for improved public services in Gujarat due to the GWS&SB's enhanced financial capacity.

Suggested Action Items

  • The Government of Gujarat should support the GWS&SB in utilizing the additional financial resources effectively.

Key Entities Referenced

Ministry of Finance (Department of Revenue), Central Board of Direct Taxes: The issuing authority of the notification, responsible for the administration of income tax in India. Gujarat Water Supply and Sewerage Board (GWS&SB): A board constituted by the Government of Gujarat, which receives the tax exemption. Government of Gujarat: The entity that constituted the GWS&SB. Income Tax Act, 1961: The primary legislation under which the tax exemption is granted. Gujarat Water Supply and Sewerage Board Act, 1978: Relevant legislation concerning the GWS&SB's operations.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-12102024-257814 CG-DxLx-xEG-I1D2H1x0x2x0 24-257814 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 4036] नई दिल्ली, िजनिार, अक्त बू र 12, 2024/आज‍ि न 20, 1946 No. 4036] NEW DELHI, SATURDAY, OCTOBER 12, 2024/ASVINA 20, 1946 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल् ली, 11 अक् तूबर, 2024 का.आ. 4399(अ).— आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा प्रित्त िजियों का प्रयोग करत ेहुए, केन्द्रीय सरकार, एतद्द्वारा उि खंड के प्रयोिनों के जलए 'गुिरात िल आपूर्तड एि ंसीिरेि बोड'ड, गांधीनगर (पैन AAALG5041P), िो दक गुिरात सरकार द्वारा गठित एक बोडड है, को उि भ ूत होने िाली जनम्नजलजखत जिजनर्िडष्ट आय के संबंध में अजधसूजचत करती ह,ै आर्ाडत : (क) सरकार, स्ट्र्ानीय जनकायों और अन्द्य सरकारी एिेंजसयों से प्राप्त अनिु ान; (ख) गुिरात िल आपूर्तड और सीिरेि बोडड अजधजनयम, 1978/गुिरात सरकार द्वारा जनधाडठरत िरों पर सेंटेि; (ग) स्ट्र्ानीय जनकायों/ग्राम पंचायतों/उद्योगों से एकजत्रत िल िुल्क (गुिरात सरकार द्वारा जनधाडठरत टैठरफ); (घ) पेंिन और ग्रेच्युटी अंििान से प्राजप्तयां; (ङ) अन्द्य आय िैसे िांच िल्ु क, दकराया िुल्क, जनजििा अनुसूची की जबक्री और गुिरात िल आपूर्तड और सीिरेि बोडड अजधजनयम, 1978 के तहत प्राप्त दकराया; और (च) बैंक िमा पर अर्िडत ब्याि। 6548 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 2. यह अजधसूचना इन ितों के अधीन प्रभािी होगी दक 'गुिरात िल आपूर्तड एि ंसीिरेि बोडड', गांधीनगर– (क) दकसी भी व्यािसाजयक गजतजिजध में िाजमल नहीं होगा; (ख) गजतजिजधयााँ और जनर्िष्टड आय की प्रकृजत परू े जित्तीय िर्षों में अपठरिर्तडत रहगें ी; और (ग) आयकर अजधजनयम, 1961 की धारा 139 की उप-धारा (4 ग) के खडं (छ) के प्रािधान के अनुसार आय की जििरणी िाजखल करेगा। 3. यह अजधसूचना जित्तीय िर्षड 2021-2022 और 2022-2023 से संगत जनधारड ण िर्षड 2022-2023 और 2023-2024 के जलए लागू मानी िाएगी और यह जित्तीय िर्षों 2023-2024, 2024-2025 और 2025-2026 के जलए क्रमिः प्रासंजगक जनधाडरण िर्षों 2024-2025, 2025-2026 और 2026-2027 के जलए लागू होगी। [अजधसूचना स.ं 108 /2024/फा. स.ं 300196/15/2021-आईटीए-I] जिकास ससंह, जनिेिक (आईटीए-I) स्ट्पष्टीकरण ज्ञापन यह प्रमाजणत दकया िाता ह ै दक इस अजधसूचना को भूतलक्षी प्रभाि िेने से दकसी भी व्यजि पर प्रजतकूल प्रभाि नहीं पड़ रहा ह।ै MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 11th October, 2024 S.O. 4399(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, ‘Gujarat Water Supply and Sewerage Board’, Gandhinagar (PAN: AAALG5041P), a Board constituted by the Government of Gujarat in respect of the following specified income arising to that Board, namely: (a) Grant received from Government, Local Bodies and Other Government Agencies; (b) Centage at rates prescribed by the Gujarat Water Supply and Sewerage Board Act, 1978/Government of Gujarat; (c) Water charges (tariff fixed by the Government of Gujarat) collected from local bodies/village panchayats/ industries; (d) Receipts from Pension and gratuity contribution; (e) Other incomes such as investigation charges, Hire Charges, Sale of Tender Schedule and Rent received under the Gujarat Water Supply and Sewerage Board Act, 1978; and (f) Interest earned on bank deposits. 2. This notification shall be effective subject to the conditions that Water Supply and Sewerage Board, Gandhinagar- (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 2022-2023 and 2023-2024 relevant for the financial years 2021-2022 and 2022-2023 and shall be applicable for assessment years 2024-2025, 2025-2026 and 2026-2027 relevant for the financial years 2023-2024, 2024-2025 and 2025-2026 respectively. [Notification No. 108 /2024/ F. No. 300196/15/2021-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. 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.

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