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Date: 01-Mar-2023 Category: Extra Ordinary State: Union Government Country: India

Notification under section clause 46 of section 10 of Income tax Act 1961 in case of Insolvency and Bankruptcy Board of India.

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification grants an exemption under Section 10(46) of the Income-tax Act, 1961 to the 'Insolvency and Bankruptcy Board of India' (IBBI), New Delhi, for specific incomes. This exemption means that the specified incomes of IBBI will not be subject to income tax.
  • The notification specifies that the exemption is applicable for financial years 2022-2023, 2023-2024, 2024-2025, 2025-2026 and 2026-2027.

Key Changes

  • The notification exempts the following income sources of IBBI from income tax:
  • Grants-in-aid received from the Central Government.
  • Fees received under the Insolvency and Bankruptcy Code, 2016.
  • Fines collected under the Insolvency and Bankruptcy Code, 2016.
  • Interest income accrued on the above mentioned incomes (grants, fees and fines).
  • The exemption is conditional upon IBBI not engaging in any commercial activity, maintaining the nature of its activities and specified income, and filing income tax returns as per Section 139(4C)(g) of the Income-tax Act, 1961.

Impact Analysis

Positive Impact

  • Insolvency Professionals and other Stakeholders: Indirectly benefits from a better resourced and more effective IBBI.

Conditions and Compliance

  • IBBI must file income tax returns according to Section 139(4C)(g) of the Income-tax Act, 1961.

Action Items

  • The Ministry of Finance (Department of Revenue) should monitor IBBI's compliance with the conditions of the notification.

Key Entities Referenced

Insolvency and Bankruptcy Board of India (IBBI): A board established by the Central Government responsible for regulating and developing the insolvency and bankruptcy profession and processes in India. PAN: AAAGI0193K Central Board of Direct Taxes (CBDT): A part of the Department of Revenue in the Ministry of Finance, responsible for the administration of direct taxes in India. Income-tax Act, 1961: The primary legislation governing income tax in India. Section 10(46) provides for exemptions for specified bodies or authorities. Insolvency and Bankruptcy Code, 2016: The law that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner.
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.-01032023-243991 xxxGIDHxxx CG-DL-E-01032023-243991 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.ं 910] नई दिल्ली, बुधिार, माच ड1, 2023/फाल्ग नु 10, 1944 No. 910] NEW DELHI, WEDNESDAY, MARCH 1, 2023/PHALGUNA 10, 1944 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल्ली, 1 माचड, 2023 का.आ. 947(अ).—केन्द्द्रीय सरकार आयकर अजधजनयम, 1961 (1961 का 43) की धारा 10 के खण्ड (46) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, एततद्वारा ‘भारतीय दििाला और िोधन अक्षमता बोडड’, नई दिल्ली (पैन-एएएिीआई 0193के), केन्द्द्र सरकार द्वारा स्ट्थाजपत एक बोड,ड को इस बोडड को उद्भूत होने िाली जनम्नजलजखत जिजनर्िष्टड आय के संबंध म ें उि खण्ड के प्रयोिनाथ ड अजधसजू चत करती ह,ै अथातड :- (क) केन्द्द्र सरकार से प्राप्त सहायता अनुिान; (ख) दििाला और िोधन अक्षमता सजं हता, 2016 (2016 का 31) के अन्द्तगडत प्राप्त िुल्क; (ग) दििाला और िोधन अक्षमता संजहता, 2016 (2016 का 31) के अन्द्तगडत संग्रहीत दकया गया िुमाडना; तथा (घ) उपरोि (क), (ख) तथा (ग) पर अर्िडत ब्याि आय। 2. यह अजधसूचना इन ितों के अध्याधीन प्रभािी होगी दक भारतीय दििाला और िोधन अक्षमता बोडड, नई दिल्ली- (क) दकसी व्यािसाजयक गजतजिजध में िाजमल नहीं होगा; 1356 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] (ख) जित्तीय िर्षों के िौरान गजतजिजध तथा जनर्िष्टड आय की प्रकृजत अपररिर्तडत रहगे ी; और (ग) आयकर अजधजनयम, 1961 की धारा 139 की उपधारा (4ग) के खण्ड (छ) के प्रािधान के अनुसार आयकर जििरणी फाईल करेगा। 3. यह अजधसूचना जित्तीय िर्षों 2022-2023, 2023-2024, 2024-2025, 2025-2026 तथा 2026-2027 के संबंध में लागू होगी। [अजधसूचना सं. 09/2023/फा. सं. 300196/39/2021-आईटीए-I] सौरभ िैन, अिर सजचि MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 1st March, 2023 S.O. 947(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, ‘Insolvency and Bankruptcy Board of India’, New Delhi (PAN AAAGI0193K), a Board established by the Central Government, in respect of the following specified income arising to that Board, namely: (a) Grants-in-aid received from Central Government; (b) Fees received under the Insolvency and Bankruptcy Code, 2016 (31 of 2016); (c) Fines collected under the Insolvency and Bankruptcy Code, 2016 (31 of 2016); and (d) Interest income accrued on (a), (b) and (c) above. 2. This notification shall be effective subject to the conditions that Insolvency and Bankruptcy Board of India, New Delhi:- (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 financial years 2022-2023, 2023-2024, 2024-2025, 2025-2026 and 2026-2027. [Notification No. 09/2023/F.No.300196/39/2021-ITA-I] SOURABH JAIN, 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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