CBDT Notifies Income Tax Exemption To Karnataka State Building and Other Construction Workers Welfare Board

The Central Board of Direct Taxes (CBDT) has notified the income tax exemption under section 10(46) of the Income Tax Act to the Karnataka State Building and Other Construction Workers Welfare Board.

The state government framed rules in the interest of the construction laborers in 2007 in order to take up many welfare and development schemes. Keeping in mind the interest of the construction laborers, the National Construction Labour Welfare Act of 1996 has been brought into force. In tune with this National Construction Labour Welfare Act of 1996, The state government has formulated certain guidelines and has been striving to take care of the laborers' health issues, social security, education, and other basic facilities.

The Karnataka State Building and Other Construction Workers Welfare Board shall have the income tax exemption in respect of cess collected on construction cost levied under section 3(1) of the Building and Other Construction Workers Cess Act, 1996; registration fee & annual subscriptions received from the establishments; and interest earned.

The CBDT has imposed various conditions on the Karnataka State Building and Other Construction Workers Welfare Board.

Firstly, it shall not engage in any commercial activity.

Secondly, the activities and the nature of the specified income shall remain unchanged throughout the financial years.

Lastly, it shall file a return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

This notification shall be deemed to have been applied for the financial year 2020-2021 (for the period from 01- 06-2020 to 31-03-2021) and for the financial year 2021-2022 and shall be applicable with respect to the financial years 2022-2023, 2023-2024 and 2024-2025.

Notification No. 12/2023/F.No.300196/61/2018-ITA-I

Date: 03.03.2023

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