Notification u/s 10(46) of the Income Tax Act, 1961 in the case of Treasurer Charitable Endowments, Haryana

## Policy Analysis Report: Notification Regarding Treasurer Charitable Endowments, Haryana **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India, effective June 16, 2025. The notification concerns Treasurer Charitable Endowments, Haryana, and grants them an exemption under clause 46 of section 10 of the Income-tax Act, 1961, for specific income sources. This exemption is conditional and subject to specific compliance requirements. The report details the key provisions, target audience, implementation aspects, and expected outcomes based solely on the provided notification text. **2. Introduction:** This report aims to provide a comprehensive analysis of the notification S.O. 2688(E), issued on June 16, 2025, regarding the tax exemption granted to Treasurer Charitable Endowments, Haryana. The analysis is based solely on the information provided within the text of the notification. **3. Policy Overview:** This is a *new* policy specifically granting tax exemption to the Treasurer Charitable Endowments, Haryana. * **Core Objective(s):** Based on the text, the primary objective is to notify the tax exemption granted to Treasurer Charitable Endowments, Haryana, under specific clauses of the Income-tax Act, 1961, for identified income sources (Grants and Interest). This appears intended to financially support the National Workers Relief Fund managed by the Endowment. **4. Background and Rationale:** This is a *new* policy granting an exemption. The notification suggests that Treasurer Charitable Endowments, Haryana, requires tax exemption on specific income sources to effectively manage the National Workers Relief Fund. This exemption likely aims to encourage and facilitate the fund's operations by reducing the tax burden on incoming grants and interest earned. **5. Key Provisions:** This policy establishes the following key provisions: * **Tax Exemption:** Treasurer Charitable Endowments, Haryana, is granted exemption under clause 46 of section 10 of the Income-tax Act, 1961. * **Specified Income:** The exemption applies to the following income sources: * Grants received from the Central Government or State Government of Haryana for the National Workers Relief Fund only. * Interest on bank deposits. * **Conditions:** The exemption is subject to the following conditions: * The Endowment shall not engage in any commercial activity. * The activities and the nature of the specified income shall remain unchanged throughout the financial years. * The Endowment shall file return of income in accordance with the provision of clause g of subsection 4C of section 139 of the Income-tax Act, 1961. * **Retrospective Application:** The notification is deemed to have been applied for the assessment years 2015-2016, 2016-2017, 2017-2018, 2018-2019, and 2019-2020 relevant for the Financial Years 2014-2015, 2015-2016, 2016-2017, 2017-2018 and 2018-2019. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders are: * Treasurer Charitable Endowments, Haryana (PAN: AAALT1027E) * Central Government and State Government of Haryana (as grant providers) * Central Board of Direct Taxes (CBDT) * Income Tax Department * National Workers Relief Fund and its beneficiaries **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT) and the Income Tax Department are responsible for implementing and monitoring the notification. Treasurer Charitable Endowments, Haryana is responsible for compliance. * **Timelines/Procedures:** The notification is effective from June 16, 2025, and applies retrospectively. The Endowment must file income tax returns according to specified provisions. * The Endowment must ensure that activities and income sources remain unchanged to maintain the exemption. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this notification are: * Reduced tax liability for Treasurer Charitable Endowments, Haryana, allowing them to allocate more funds to the National Workers Relief Fund. * Increased financial resources available for the National Workers Relief Fund, potentially leading to greater support for workers. * Streamlined financial management for the Endowment concerning income from grants and bank deposits. * Promotion of charitable activities by the Government of Haryana. **9. Conclusion:** The notification issued by the Ministry of Finance grants a conditional tax exemption to Treasurer Charitable Endowments, Haryana, for specified income sources. This exemption is intended to support the National Workers Relief Fund and is subject to specific conditions related to commercial activities, income nature, and compliance with income tax regulations. The notification signifies the government's support for charitable organizations and their efforts to provide relief to workers. The retrospective application highlights the importance and need for this notification.

Key Entities Referenced