IBBI GET CBDT EXEMPTION UNDER CLAUSE 46 OF SECTION 10 OF INCOME TAX ACT-1961
The Central Board of Direct Taxes (CBDT) notified the Income Tax exemption to Insolvency and Bankruptcy Board of India (IBBI) under clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961).
The exemption has been extended to the IBBI, a board created by the central government, was notified for the purposes of the aforementioned clause in relation to the aforementioned specified revenue arising to that Board, namely: Grants-in-aid received from Central Government; Fees received under the Insolvency and Bankruptcy Code, 2016 (31 of 2016); Fines collected under the Insolvency and Bankruptcy Code, 2016 (31 of 2016); and Interest income accrued on (a), (b) and (c) above. Subject to the following requirements being met by the Insolvency and Bankruptcy Board of India, New Delhi:
(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.
According to section 10(46), any specified income accruing to any body/authority/Board/ Trust/Commission (or a class thereof) that has been established or created pursuant to a Central, State, or Provincial Act, or that has been created by the Government or a State Government with the purpose of regulating or administering any activity for the benefit of the general public and is not engaged in any commercial activity and is notified by the Central Government in the Official Gazette for the purposes of this clause is exempt from tax.
SOURCE: Notification No. 09/2023/F.No.300196/39/2021-ITA-I
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