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Date: 23-Aug-2023 Category: Extra Ordinary State: Union Government Country: India

Notification under clause 46 of section 10 of Income tax Act 1961 in case of DMF

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 under Section 10(46) of the Income-tax Act, 1961 to specific District Mineral Foundation (DMF) Trusts in Odisha. These trusts are constituted by the government under Section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.
  • The exemption applies to specific income sources of the DMF Trusts.
  • The notification is effective retrospectively from the assessment year 2023-24 and applies until the assessment year 2027-28.

Key Changes

  • The notification lists 12 District Mineral Foundation Trusts in Odisha that will be considered as a ‘class of Authority’ for income tax exemption.
  • The exempted income includes: contributions from leaseholders as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015; interest received from leaseholders for late payments; penalties charged to leaseholders; interest income from funds available under DMF; interest received on saving bank accounts; and interest received on excess funds invested in term deposits.
  • The exemption is conditional upon the DMF Trusts not engaging in any commercial activity, maintaining consistent activities and income nature throughout the financial years, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.
  • The notification is applicable retrospectively from the financial year 2022-2023 (assessment year 2023-24) to the financial year 2026-2027 (assessment year 2027-28).

Impact Analysis

Impact on District Mineral Foundation Trusts

  • Compliance requirement: The trusts must ensure they do not engage in any commercial activity, maintain the nature of their income and activities, and file income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961 to maintain the exemption.

Impact on Mining Lease Holders

  • Potential indirect benefit: More efficient utilization of DMF funds due to tax exemption may lead to improved infrastructure and welfare in mining areas, indirectly benefiting leaseholders.

Impact on Government

  • Increased effectiveness of DMFs: The tax exemption should enhance the financial capacity of DMFs, potentially leading to more effective implementation of development and welfare projects in mining-affected areas, aligning with the objectives of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

Suggested Action Items for DMF Trusts

  • Update financial records: Update financial records to reflect the tax-exempt status of the specified income.

Key Entities Referenced

District Mineral Foundation (DMF) Trust: Trusts constituted by the government under Section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, for the benefit of areas affected by mining. Income-tax Act, 1961: The primary legislation governing income tax in India. Section 10(46) provides for exemption of income of certain authorities. Mines and Minerals (Development and Regulation) Amendment Act, 2015: An Act to amend the Mines and Minerals (Development and Regulation) Act, 1957, including provisions for the establishment of District Mineral Foundations. Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015: Rules governing the contributions to be made by lease holders to the District Mineral Foundation.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-23082023-248265 CG-DxLx-xEG-I2D3H0x8x2x0 23-248265 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.ं 3616] नई दिल्ली, बुधिार, अगस्ट्त 23, 2023/भाद्र 1, 1945 No. 3616] NEW DELHI, WEDNESDAY, AUGUST 23, 2023/BHADRA 1, 1945 जित्त मंत्रालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोड)ड अजधसचू ना नई दिल्ली, 23 अगस्ट्त, 2023 का.आ. 3776(अ).—केंद्रीय सरकार आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, खान तथा खजनि (जिकास और जिजनयमन), संिोधन अजधजनयम, 2015 (2015 का 10) की धारा 9(ख) में प्रित्त िजियों का प्रयोग करत े हुए सरकार द्वारा गठित एक ‘प्राजधकार की श्रेणी’ के रूप म ें‘जडजस्ट्रक्ट जमनरल फाउंडेिन रस्ट्ट’, िैसा दक इस अजधसूचना की अनुसूची में जिजनर्िष्टड दकया गया है, को, उस प्राजधकरण को उद्भूत होने िाली जनम्नजलजखत जिजनर्िष्टड आय के संबंध म,ें उि खंड के प्रयोिनाथ ड अजधसूजचत करती ह,ै अथाडतः- (क) खान तथा खजनि (जडजस्ट्रक्ट जमनरल फाउंडेिन को अिं िान) जनयमािली, 2015 के अनसु ार पट्टाधारकों द्वारा डीएमएफ को दिया गया अंििान; (ख) िेरी से भगु तान के जलए पट्टाधारकों से प्राप्त ब्याि; (ग) पट्टाधारक पर लगाया गया कोई भी अथडिडं ; (घ) डीएमएफ के अंतगडत उपलब्ध जनजध पर ब्याि से प्राप्त आय; (ङ) बचत बैंक खातों पर प्राप्त ब्याि; और (च) सािजध िमा में जनिेि दकए गए अजतठरि जनजध पर प्राप्त ब्याि 5438 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 2. यह अजधसूचना जनम्नजलजखत ितों के अध्यधीन रहगे ी दक प्रत्यके जडजस्ट्रक्ट जमनरल फाउंडेिन रस्ट्ट- (क) दकसी िाजणजययक कायडकलाप में िाजमल नहीं होगा; (ख) कायडकलाप और जिजिष्ट आय की प्रकृजत समस्ट्त जित्तीय िर्षों के िौरान अपठरिर्तडत रहगे ी; और (ग) आयकर अजधजनयम, 1961 की धारा 139 की उप-धारा (4ग) के खडं (छ) के प्रािधान के अनुसार आय की जििरणी फाइल करेगा। 3. जनम्न उजल्लजखत अनुसूची के स्ट्तंभ (2) में उजल्लजखत न्यासों के संबंध में यह अजधसूचना जित्तीय िर्षड 2022-2023 से 2026-27 से प्रासंजगक जनधाडरण िर्ष ड2023-24 से 2027-28 के जलए लागू हुई मानी िाएगी। अनसु चू ी क्र. सं. डीएमएफ न्यास का नाम रायय पैन (1) (2) (3) (4) 1. अंगलु जडजस्ट्रक्ट जमनरल फाउंडेिन ओजडिा एएएएलडी1844एम 2. जडजस्ट्रक्ट जमनरल फाउंडेिन, ियपुर ओजडिा एएडीटीडी2632ई 3. जडजस्ट्रक्ट जमनरल फाउंडेिन, झारसुगुडा ओजडिा एएडीटीडी1294क्यू 4. जडजस्ट्रक्ट जमनरल फाउंडेिन, क्योंझर ओजडिा एएएिीडी2339सी 5. जडजस्ट्रक्ट जमनरल फाउंडेिन, कोरापूत ओजडिा एएपीएफडी8437के 6. जडजस्ट्रक्ट जमनरल फाउंडेिन, सुंिरगढ़ ओजडिा एएडीटीडी0841पी 7. जडजस्ट्रक्ट जमनरल फाउंडेिन, संबलपुर ओजडिा एएडीटीडी5287एच 8. जडजस्ट्रक्ट जमनरल फाउंडेिन, धने कनाल ओजडिा एएडीटीडी5665आर 9. जडजस्ट्रक्ट जमनरल फाउंडेिन, मयूरभंि ओजडिा एएिीटीएम8219एच 10. जडजस्ट्रक्ट जमनरल फाउंडेिन, रायगड ओजडिा एएडीटीडी5522डी 11. जडजस्ट्रक्ट जमनरल फाउंडेिन, नौपाडा ओजडिा एएडीटीडी6189िे 12. जडजस्ट्रक्ट जमनरल फाउंडेिन, पुरी ओजडिा एएडीटीडी6294क्यू [अजधसूचना सं. 66/2023/फा. सं. 300196/36/2017-आईटीए-I(भाग-I)] जिकास ससंह, जनिेिक, आईटीए-I स्ट्पष्टीकरण ज्ञापन प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को भतू लक्षी प्रभाि िेन े से दकसी व्यजि पर प्रजतकूल प्रभाि नहीं पड़ रहा ह।ै MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 23rd August, 2023 S.O. 3776(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, ‘District Mineral Foundation Trust’ as specified in the schedule to this notification, constituted by Government in exercise of powers conferred under section 9(B) of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015) as a ‘class of Authority’ , in respect of the following specified income arising to that Authority, namely :-[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 (a) Contribution by lease Holder to DMF as per the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015; (b) Interest received from lease holders for late payment; (c) Any Penalty charged to lease holder; (d) Income from Interest on fund available under DMF; (e) Interest received on Saving Bank Accounts; and (f) Interest received on Excess Fund invested in Term Deposit. 2. This notification shall be effective subject to the conditions that each of the District Mineral Foundation Trust- (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 year 2023-2024 to 2027-2028 relevant to financial year 2022-2023 to 2026-2027 in respect of Trusts mentioned in column (2) of the below mentioned schedule. SCHEDULE S.No. Name of DMF Trust State PAN (1) (2) (3) (4) 1. Angul District Mineral Foundation Odisha AAALD1844M 2. District Mineral Foundation Trust, Jajpur Odisha AADTD2632E 3. District Mineral Foundation, Jharsuguda Odisha AADTD1294Q 4. District Mineral Foundation, Keonjhar Odisha AAAGD2339C 5. District Mineral Foundation, Koraput Odisha AAPFD8437K 6. District Mineral Foundation, Sundargarh Odisha AADTD0841P 7. District Mineral Foundation Trust, Sambalpur Odisha AADTD5287H 8. District Mineral Foundation Trust, Dhenkanal Odisha AADTD5665R 9. District Mineral Foundation Trust, Mayurbhanj Odisha AAGTM8219H 10. District Mineral Foundation Trust, Rayagada Odisha AADTD5522D 11. District Mineral Foundation Trust, Nuapada Odisha AADTD6189J 12. District Mineral Foundation Trust, Puri Odisha AADTD6294Q [Notification No. 66/2023 /F.No.300196/36/2017-ITA-I(Pt.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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