This gazette notification from the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, grants income tax exemption to the ‘Karnataka State Horticulture Development Agency’ for specific income categories.
The notification specifies that certain incomes of the agency will be exempt from income tax under section 10(46) of the Income-tax Act, 1961.
Key Changes
The notification exempts the following income of the Karnataka State Horticulture Development Agency from income tax:
Grants-in-aid received from Central and Karnataka State Governments.
Revenue from horticulture activities as per the agency's objectives outlined in its Memorandum of Association (Karnataka Government Order No: AHD 88 HPP 2008, dated 14.11.2008).
Interest earned on bank deposits.
The exemption is subject to the condition that the agency does not engage in any commercial activity.
The agency's activities and the nature of its income must remain unchanged throughout the financial years.
The agency is required to file income tax returns as per section 139(4C)(g) of the Income-tax Act, 1961.
The notification is retrospectively applicable for the assessment years 2021-2022, 2022-2023, 2023-2024 and 2024-2025, which correspond to the financial years 2020-2021, 2021-2022, 2022-2023 and 2023-2024 respectively.
Impact Analysis
Karnataka State Horticulture Development Agency
Action Item: Ensure compliance with all conditions mentioned in the notification to avail the tax exemption.
Government of Karnataka
Action Item: Monitor the agency's activities to ensure compliance with the notification.
Central Government
Action Item: Ensure the agency complies with the conditions of the exemption.
General Public
Action Item: None.
Key Entities Referenced
Karnataka State Horticulture Development Agency: A society constituted by the Government of Karnataka, identified by PAN: AAALE0284C, that is the recipient of the tax exemption.
Income-tax Act, 1961: The primary legislation governing income tax in India. Section 10(46) provides the basis for the tax exemption, and section 139(4C)(g) outlines the return filing requirements.
Central Board of Direct Taxes: The body under the Ministry of Finance responsible for administering direct taxes in India, which issued this notification.
Government of Karnataka Order No: AHD 88 HPP 2008: The order dated 14.11.2008 that contains the Memorandum of Association of the Karnataka State Horticulture Development Agency.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-03012025-259898
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 47] नई दिल्ली, िुक्रिार, िनिरी 3, 2025/ पौष 13, 1946
No. 47] NEW DELHI, FRIDAY, JANUARY 3, 2025/ PAUSHA 13, 1946
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 3 िनिरी, 2025
का.आ.49(अ).—आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा प्रित्त िजियों का प्रयोग करते
हुए, केंद्र सरकार, एतद्द्वारा उि खंड के प्रयोिनों के जलए ‘कनाडटक राज्य बागिानी जिकास एिेंसी’, (पैन: AAALE0284C)
िो कनाडटक सरकार द्वारा गठित एक सोसायटी ह,ै को उद्भूत होने िाली जनम्नजलजखत जिजनर्िडष्ट आय के संबंध में अजधसूजचत करती है,
अर्ाडत्:
(क) केन्द्द्र सरकार एिं कनाडटक राज्य सरकार से प्राप्त सहायता अनुिान,
(ख) कनाडटक राज्य बागिानी जिकास एिेंसी के लक्ष्यों और उद्देश्यों के अनुसार की गई बागिानी गजतजिजधयों से प्राप्त
रािस्ट्ि िैसा दक कनाडटक सरकार के दिनांक 14.11.2008 के आिेि संखयााः एएचडी 88 एचपीपी 2008 द्वारा िारी
इसके संगम ज्ञापन में उजल्लजखत है; तर्ा
(ग) बैंक िमा पर अर्िडत ब्याि।
2. यह अजधसूचना इन ितों के अध्यधीन प्रभािी होगी दक ‘कनाडटक राज्य बागिानी जिकास एिेंसी’-
(क) दकसी भी व् यािसाजयक गजतजिजध में िाजमल नहीं होगी;
64 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ख) इसकी गजतजिजधयां और जनर्िडष्ट आय की प्रकृजत पूरे जित्तीय िषों में अपठरिर्तडत रहगें ी; और
(ग) आयकर अजधजनयम, 1961 की धारा 139 की उप-धारा (4 ग) के खंड (छ) के उपबंध के अनुसार आय की जििरणी
िाजखल करेगा।
3. यह अजधसूचना जित्तीय िषों क्रमिाः 2020-2021, 2021-2022, 2022-2023 एिं 2023-2024 के जलए प्रासंजगक जनधाडरण
िषों 2021-2022, 2022-2023, 2023-2024 एिं 2024-2025 के जलए लागू मानी िाएगी।
[अजधसूचना सं. 5 /2025 फा.सं. 300196/37/2019-आईटीए-I]
अश्वनी कुमार, अिर सजचि
स्ट्प ष्ट ीकरण 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 3rd January, 2025
S.O. 49(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
Horticulture Development Agency’ (PAN: AAALE0284C), a Society constituted by the Government of Karnataka, in
respect of the following specified income arising to that Society, namely:-
(a) Grants-in-aid received from Central Government and State Government of Karnataka;
(b) Revenue from horticulture activities undertaken as per the aims and objectives of Karnataka State
Horticulture Development Agency as mentioned in its Memorandum of Association issued vide
Karnataka Government Order No: AHD 88 HPP 2008, dated 14.11.2008; and
(c) Interest on bank deposits.
2. This notification shall be effective subject to the conditions that ‘Karnataka State Horticulture Development
Agency’ -
(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 the assessment years 2021-2022, 2022-2023, 2023-
2024 & 2024-2025 relevant for the financial years 2020-2021, 2021-2022, 2022-2023 & 2023-2024.
[Notification No. 5 /2025 F. No. 300196/37/2019-ITA-I]
ASHWANI KUMAR, Under Secy.
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.