Standardizing the process of filling application under section 10(46) of the Income-Tax Act, 1961

Standardizing the process of filling application under section 10(46) of the Income-Tax Act, 1961

Central Government by way of clause (46) of Section 10 of Income Tax Act, 1961, exempt specified income which is arising to any body or authority or Board or Trust or Commission, established under a central or state act or by a central or state government. The main objective of such entity would be for the benefit of public and not for any commercial activity, then the only such exemption is eligible to such entity under section 10 (46) of Income Tax Act, 1961.

Entity which are eligible under section 10(46) of the Income Tax would be notified by the Central Government in the official Gazette.

Specified Income

Central Government will notify in the official Gazette by notification that which entity are eligible for such exemption and  for such entity which type of income would be exempt. It means the income which are exempt are notify in respective notification in which such entity are exempt under Section 10(46) of the Income Tax Act.

At present, there is no uniformity in the manner in which applications under Section 10(46) are being filed by applicants. In order to standardize the manner of filing application u/s 10(46) and to avoid procedural delay in processing the same applicants are advised to file the applications alongwith requisite enclosures to the Commissioner of Income Tax/ Director of Income Tax under whose jurisdiction their cases fall. The applicants are further advised to adopt the Format laid down blow while submitting the applications u/s 10(46) of the IT Act. The Applicant shall also send a copy of the said applicantion alongwith all its enclosures to the Under Secretary (ITA-1), Central Board of Direct Taxes, accompanied by the acknowledgement receipt forwards evidence of having furnished the applicantion in the office of jurisdicational CIT/DIT.

To Download:- Application FormateU/s 10(46) of the Income Tax Act, 1961 - Click Here

Sr. No.	Requirement	Details
1	Name of the Applicant
2	Address
3	PAN
4	Status
5	Returned Income of previous two years and taxes paid (if applicable). Pl. enclose copy of returns filed
6	Designation of Assessing Officer
7	Eligible Category I.                    Body II.                  Authority III.                Board IV.                Trust V.                  Commission VI.                Any other (PI. Specify)
8	Objects/Purpose for which set up/created. Pl. file supporting documents
9	Whether created with object of regulating or administering any activity for benefit of general public? If yes, details of activity so regulated or administered. Pl. file supporting documents.
10	Nature of Activity
11	Are any of the activities carried out commercial in nature? Pl. Furnish justification to the answer.
12 (A)	Whether established or constituted by a Central or State Act? Pl. Give Details.
(B)	Whether constituted by a State or Central Government? Pl. Specity
(C)	Copy of such Deedd/Notification/Act or other relevant document establishing or constituting the entity seeking exemption.
13	Nature of Revenue Streams
14	Nature of Income sought to be notified for purpose of section 10(46)
15	Basis of seeking notification u/s 10(46)
16 (A)       (B)       (C)	Whether already registered u/s 12A? If yes, Pl. Furnish Copy of order granting registration. If already registered u/s 12A, pl explain why notification u/s 10(46) is being sought.
17	Whether a)      Exemption U/s 11 & 12 has been denied by the assessing officer. If yes, when and on what grounds. b)      Registration U/s 12AA has been rejected earlier. If yes, when and on what grounds.
18	Whether approval U/s 10(23C)(iv) has been a)      Applied for (If yes, when), b)      Granted (if yes, pl furnish the copy of relevant order) c)       Such request has been rejected earlier. If yes, when and on what grounds. Pl. funish a copy of relevant order.
19	Pl. furnish copies of Balance Sheet, Profit & Loss Account or Inocme & Expenditure statement of last three years, along with schedules.
20	Whether the accounts are requied to be audited? If yes, whether complied with?
21	Whether any penalty imposed or prosecution launched for any violation of law in the past? If yes, pl inform when such order was passed and what was the violation. Copy of relevant order be enclosed.
22	Any other information or document/ information brochure/ Annual Report etc.

Section 10(46) of Income Tax Act, 1961.

“Any specified income arising to a body or authority or Board or Trust or Commission (by whatever name called) which—

(a)  has been established or constituted by or under a Central, State or Provincial Act, or constituted by the Central Government or a State Government, with the object of regulating or administering any activity for the benefit of the general public;

(b)  is not engaged in any commercial activity; and

(c)  is notified by the Central Government in the Official Gazette for the purposes of this clause.

Explanation.—For the purposes of this clause, "specified income" means the income, of the nature and to the extent arising to a body or authority or Board or Trust or Commission (by whatever name called) referred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf;”