Tax Exemption for Assam Building and Construction Workers Welfare Board

Tax Exemption Notification for Assam Building and Other Construction Workers Welfare Board

On November 10, 2021, the Central Board of Direct Taxes (CBDT) issued Notification No. 131/2021 under the Income Tax Act, 1961, granting tax exemptions to the 'Assam Building and Other Construction Workers Welfare Board' for specified incomes as per section 10(46).

Notification Details

In accordance with clause (46) of section 10 of the Income Tax Act, 1961, the Central Government recognizes the 'Assam Building and Other Construction Workers Welfare Board', established by the Assam State Government, for the following types of specified income:

1. Labour cess received
2. Beneficiaries' registration fees
3. Membership contributions
4. Capital gain from sale/redemption of investments
5. Interest income derived from the above incomes (points 1-3)

Conditions for Exemption

This tax exemption is contingent upon the following conditions being met by the Assam Building and Other Construction Workers Welfare Board:

• No Commercial Activity: The Board must not engage in any commercial activities.
• Unchanged Activities: The nature of activities and specified income must remain consistent throughout the financial years.
• Filing Returns: The Board is required to submit an income tax return in accordance with clause (g) of subsection (4C) of section 139 of the Income Tax Act, 1961.

Duration of Applicability

This notification will be applicable for the following financial years:

• 2021-2022
• 2022-2023
• 2023-2024
• 2024-2025
• 2025-2026

This notification aims to support the welfare initiatives of the Assam Building and Other Construction Workers Welfare Board, aligning with the government's ongoing commitment to enhance worker welfare in the construction industry.