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Date: 2025-03-28 Category: Extra Ordinary State: Union Government Country: India

Notification u/s 10(46) of the Income Tax Act, 1961 in the case of Karnataka Urban Water Supply and Drainage Board, Bangalore

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification grants income tax exemption to 'Karnataka Urban Water Supply & Drainage Board, Bangalore' on specific income sources, under Section 10(46) of the Income-tax Act, 1961. This exemption applies to assessment years 2024-2025 to 2028-2029, relevant to financial years 2023-2024 to 2027-2028.

Key Changes

  • Exemption from income tax is provided for the following income sources of the Karnataka Urban Water Supply & Drainage Board, Bangalore:
  • Establishment, administrative, supervision, water charges, and rent collected as per the Karnataka Urban Water Supply and Drainage Board Act, 1973.
  • Forfeiture of earnest money deposit as per the Karnataka Urban Water Supply and Drainage Board Act, 1973.
  • Penalty (with fine), Sale of Scrap, Storage charges, Issue of Tender Forms, and Survey charges as per the Karnataka Urban Water Supply and Drainage Board Act, 1973.
  • Interest earned on bank deposits.
  • The exemption is conditional upon the board not engaging in any commercial activity, maintaining the same nature of activities and specified income throughout the financial years, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.
  • The notification is effective for the assessment years 2024-2025 through 2028-2029, corresponding to the financial years 2023-2024 through 2027-2028.

Impact Analysis

Karnataka Urban Water Supply & Drainage Board, Bangalore

  • Action Item: The board should review its activities to ensure compliance with the conditions of the notification. It should also ensure timely filing of income tax returns.

State Government of Karnataka

  • No direct action needed but should ensure that the board is in compliance with laid down conditions.

Citizens of Karnataka

  • No direct action needed.

Central Government (CBDT)

  • Action Item: Ensure that the conditions mentioned in the notification are adhered to.

Key Entities Referenced

Karnataka Urban Water Supply & Drainage Board, Bangalore: A trust established by the State Government of Karnataka responsible for urban water supply and drainage services. PAN: AAATK5837F Income-tax Act, 1961: The principal legislation governing income tax in India. Section 10(46) provides for exemption of income of certain bodies or authorities. Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974): The state act that governs the establishment, functions, and powers of the Karnataka Urban Water Supply & Drainage Board. Central Board of Direct Taxes (CBDT): A part of the Department of Revenue in the Ministry of Finance, Government of India. It provides inputs for policy and planning of direct taxes in India and is also responsible for administration of direct tax laws through the Income Tax Department.
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रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-28032025-262069 CG-DxLx-xEG-I2D8H0x3x2x0 25-262069 xxxGIDExxx ऄसाधारण EXTRAORDINARY भाग II—खण् ड 3—ईप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 1492] नइ ददल्ली, िुरिार, माचड 28, 2025/चत्रै 7, 1947 No. 1492] NEW DELHI, FRIDAY, MARCH 28, 2025/CHAITRA 7, 1947 जित्त मत्रं ालय (राजस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) ऄजधसचू ना नइ ददल्ली, 28 माच,ड 2025 का.अ.1510(ऄ).—अयकर ऄजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए, केन्द्र सरकार ईि खडं के प्रयोजनों के जलए, 'कनाडटक िहरी जलापूर्तत और जल जनकासी बोडड, बैंगलोर’ (पैन AAATK5837F), राज्य सरकार द्वारा गठित एक रस्ट्ट को, ईस रस्ट्ट को ईत्पन्न होन े िाली जनम्नजलजखत जिजनर्ददष्ट अय के संबंध में ऄजधसूजचत करती ह,ै ऄथाडत:- (क) कनाडटक िहरी जलापूर्तत और जल जनकासी बोड ड ऄजधजनयम, 1973 (कनाडटक ऄजधजनयम संख्या, 1974 का 25) के ऄनुसार स्ट्थापना, प्रिासजनक, पयडिेक्षण, जल िल्ु क और सग्रं जहत दकराया; (ख) कनाडटक िहरी जलापूर्तत और जल जनकासी बोड ड ऄजधजनयम, 1973 (कनाडटक ऄजधजनयम संख्या, 1974 का 25) के ऄनुसार बयाना राजि की जब्ती; (ग) कनाडटक िहरी जलापूर्तत और जल जनकासी बोड ड ऄजधजनयम, 1973 (कनाडटक ऄजधजनयम संख्या, 1974 का 25) के ऄनुसार िाजस्ट्त (जमु ाडने सजहत), स्ट्रैप की जबरी, भंडारण िुल्क, जनजिदा प्रपत्र जारी करना और सिेक्षण िल्ु क; और (घ) बैंक जमा पर ब्याज; 2216 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 2. यह ऄजधसूचना आन ितों के ऄधीन प्रभािी होगी दक 'कनाडटक िहरी जलापूर्तत और जल जनकासी बोडड, बैंगलोर’– (क) दकसी भी व्यािसाजयक गजतजिजध में िाजमल नहीं होगा; (ख) गजतजिजधयााँ और जनर्ददष्ट अय की प्रकृजत परू े जित्तीय िर्षों में ऄपठरिर्ततत रहगे ी; और (ग) अयकर ऄजधजनयम, 1961 की धारा 139 की ईप-धारा (4 ग) के खंड (छ) के प्रािधान के ऄनुसार अय की जििरणी दाजखल करेगा। 3. यह ऄजधसूचना रमिः जित्तीय िर्षों 2023-24 से 2027-28 के जलए संगत जनधाडरण िर्षों 2024-25 से 2028-29 के जलए लाग ू होगी। [ऄजधसूचना स.ं 24/2025 फा./सं. 300196/61/2024-अइटीए-I] ऄश् िनी कुमार, ऄिर सजचि MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 28th March, 2025 S.O. 1510(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 Urban Water Supply & Drainage Board, Bangalore (PAN AAATK5837F), a trust established by the State Government, in respect of the following specified income arising to that trust, namely:- (a) Establishment, administrative, supervision, water charges and rent collected as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974); (b) Forfeiture of earnest money deposit as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974); (c) Penalty(with fine), Sale of Scrap, Storage charges, Issue of Tender Forms and Survey charges as per the Karnataka Urban Water Supply and Drainage Board Act, 1973 (Karnataka Act No. 25 of 1974) (d) Interest earned on bank deposits; 2. This notification shall be effective subject to the conditions that Karnataka Urban Water Supply & Drainage Board, Bangalore- (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 applicable with respect to the assessment years 2024-2025 to 2028-2029 relevant for financial years 2023-2024 to 2027-2028 respectively. [Notification No. 24 /2025/F. No. 300196/61/2024-ITA-I] ASHWANI KUMAR, Under 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.

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