CBDT: Insolvency and Bankruptcy Board of India is Eligible for Tax Exemption on Grant-in-Aid, Fines, Fees, Interest Income Accrued

CBDT: Insolvency and Bankruptcy Board of India is Eligible for Tax Exemption on Grant-in-Aid, Fines, Fees, Interest Income Accrued

The Ministry of Finance by its Department of Revenue- Central Board of Direct Taxes (CBDT) issued a notification which notified that the Insolvency and Bankruptcy Board of India shall be eligible for the income tax exemption under clause (46) of section 10 of the Income Tax Act, 1961.

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961, the Central Government hereby notified or the purposes of the said clause, ‘Insolvency and Bankruptcy Board of India’, 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;

(c) Fines collected under the Insolvency and Bankruptcy Code, 2016; and

(d) Interest income accrued on (a), (b) and (c) above.

The aforesaid 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.

The said notification is applicable with respect to the financial years 2022-2023, 2023-2024, 2024-2025, 2025-2026 and 2026-2027.