Home India Ministry of Finance Notification under section 10(46) of the Income tax Act 1961...
Date: 23-Jan-2024 Category: Extra Ordinary State: Union Government Country: India

Notification under section 10(46) of the Income tax Act 1961 in case of SLSA Chandigarh

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, exempts the 'State Legal Service Authority Union Territory Chandigarh' from income tax on specific income sources, under Section 10(46) of the Income-tax Act, 1961.

Key Changes

  • Exemption from income tax is granted to 'State Legal Service Authority Union Territory Chandigarh' (PAN: AAAGS1716A) on the following income:
  • Grants from Punjab and Haryana High Court and National Legal Services Authority.
  • Grants or donations from the Central Government or Punjab/Haryana State Government for the purpose of the Legal Services Authorities Act, 1987.
  • Amounts received under court orders.
  • Fees received as recruitment application fee.
  • Interest earned on bank deposits.
  • The exemption is subject to the conditions that the authority does not engage in any commercial activity, the nature of activities and specified income remains unchanged throughout the financial years, and it files income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.
  • The notification is applied retrospectively for assessment years 2021-2022, 2022-2023, and 2023-2024, relevant to financial years 2020-2021, 2021-2022, and 2022-2023 respectively.

Impact Analysis

State Legal Service Authority Union Territory Chandigarh

  • Action Item: Ensure compliance with the conditions stipulated in the notification, specifically refraining from commercial activities, maintaining consistency in the nature of activities and income, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.

Central Government/CBDT

  • Action Item: Monitor the compliance of the 'State Legal Service Authority Union Territory Chandigarh' with the conditions of the notification.

Punjab and Haryana State Governments

  • Action Item: No direct action required, but should be aware of the tax-exempt status of their contributions to the authority.

Key Entities Referenced

State Legal Service Authority Union Territory Chandigarh: An authority constituted by the Administrator, Union Territory, Chandigarh under the Legal Services Authority Act, 1987 (Central Act 39 of 1987). Income-tax Act, 1961: The principal act governing income tax in India. Section 10(46) provides for the exemption of specified income of certain bodies or authorities. Legal Services Authority Act, 1987: Central Act 39 of 1987, under which the State Legal Service Authority Union Territory Chandigarh is constituted. Central Board of Direct Taxes (CBDT): A part of the Department of Revenue in the Ministry of Finance, responsible for the administration of direct tax laws through the Income Tax Department. Punjab and Haryana High Court: A source of grants to the State Legal Service Authority Union Territory Chandigarh. National Legal Services Authority: Central Authority constituted under Legal Services Authorities Act, 1987
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.-23012024-251563 CG-DxLx-xEG-I2D3H0x1x2x0 24-251563 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.ं 312] नई दिल्ली, मगं लिार, िनिरी 23, 2024/माघ 3, 1945 No. 312] NEW DELHI, TUESDAY, JANUARY 23, 2024/MAGHA 3, 1945 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल्ली, 23 िनिरी, 2024 का.आ. 328(अ).— आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खंड (46) द्वारा प्रित्त िजियों का प्रयोग करते हुए, केंद्रीय सरकार उि खंड के प्रयोिनार्ड, ‘राज्य जिजधक सेिा प्राजधकरण संघ राज्य क्षेत्र चण्डीगढ’, (पैन: AAAGS1716A), जिजधक सेिा प्राजधकरण अजधजनयम,1987(केन्द्द्रीय अजधजनयम 1987 का 39) के अन्द्तगडत प्रिासक , केन्द्द्र िाजसत प्रििे , चण्डीगढ द्वारा गठित एक प्राजधकरण,को उि प्राजधकरण को उद्भूत होने िाली जनम्नजलजखत जिजनर्िष्टड आय के संबंध म ें अजधसूजचत करती है, अर्ाडतः (क) पंिाब एिं हठरयाणा उच् च न्द्यायालय, केन्द्द्रीय प्राजधकरण अर्ाडत जिजधक सेिा प्राजधकरण अजधजनयम, 1987 के अन्द्तगडत राष्ट्रीय जिजधक सेिा प्राजधकरण से प्राप्त अनुिान; (ख) जिजधक सेिा प्राजधकरण अजधजनयम, 1987 के प्रयोिन के जलए केन्द्द्रीय सरकार अर्िा पंिाब/हठरयाणा राज्य सरकार से प्राप्त अनुिान या िान; (ग) न्द्यायालय के आििे के अन्द्तगडत प्राप्त राजि; (घ) भती आिेिन िुल्क के रुप में प्राप्त राजि; और (ङ) बैंक िमाओं पर अर्िडत ब्याि। 511 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 2. यह अजधसूचना इन ितों के अध्यधीन प्रभािी होगी दक ‘राज्य जिजधक सेिा प्राजधकरण संघ राज्य क्षेत्र चण्डीगढ – (क) दकसी िाजणजज्यक कायडकलाप में िाजमल नहीं होगी; (ख) कायडकलापों 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 खंड (छ) के प्रािधान के अनुसार आय की जििरणी फाइल करेगा। 3. यह अजधसूचना जनधाडरण िर्षों 2021-2022, 2022-2023 और 2023-2024 के जलए लागू मानी िाएगी तर्ा क्रमिः जित्तीय िर्षों 2020-2021, 2021-2022 और 2022-2023 के जलए संगत होगी। [अजधसूचना सं. 15/2024 फा. सं. 196/18/2020-आईटीए-I(भाग -1] जिकास ससंह, जनििे क (आईटीए-I) स्ट्पष्टीकरण ज्ञापन प्रमाजणत दकया िाता ह ैदक इस अजधसूचना को भूतलक्षी प्रभाि िने े से दकसी व्यजि पर प्रजतकूल प्रभाि नहीं पड़ रहा है। MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 23rd January, 2024 S.O. 328(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, ‘State Legal Service Authority Union Territory Chandigarh’ (PAN: AAAGS1716A), an Authority constituted by the Administrator, Union Territory, Chandigarh under the Legal Services Authority Act, 1987 (Central Act 39 of 1987), in respect of the following specified income arising to the said Authority, as follows: (a) Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority constituted under Legal Services Authorities Act, 1987; (b) Grants or donation received from the Central Government or the State Government of Punjab/Haryana for the purpose of the Legal Services Authorities Act, 1987; (c) Amount received under the order of the court; (d) Fees received as recruitment application fee; and (e) Interest earned on bank deposits. 2. This notification shall be effective subject to the conditions that State Legal Service Authority Union Territory Chandigarh – (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 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively. [Notification No. 15/2024 F. No. 196/18/2020-ITA-I(Part-1)] 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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