Exemption of income of Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund.

By | February 20, 2018
(Last Updated On: February 20, 2018)

CIRCULAR No. 2/2018 Dated 15.02.2018

Exemption of income of Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund.

9.1 Section 10(23C) of the Income-tax Act provide exemption in respect of income of certain funds which include inter alia the Prime Minister’s National Relief Fund.

9.2 The Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund, referred to in sub-clause (iiihf) of clause (a) of sub-section (2) of section 80G of the Income-tax Act, which is of the same nature at the level of state or the Union Territory as is the Prime Minister’s National Relief Fund at the national level, is not exempted under section 10(23C). In the absence of such exemption, these funds are required to obtain registration under section 12A of the Income-tax Act in order to avail exemption of its income under section 11 and 12 of the said Act and are also required to fulfil certain conditions.

9.3 Therefore, clause (23C) of section 10 of the Income-tax Act has been amended to provide the benefit of exemption to the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund also.

9.4 Applicability: This amendment takes effect retrospectively from the 1st April, 1998, the date on which sub-clause (iihf) of clause (a) of sub-section (2) of section 80G relating to deduction in any sum paid to the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund came into force, and will, accordingly, apply from assessment year 1998-99 and subsequent assessment years.

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