CBDT Grants Section 10(46) Tax Exemption to Kerala Headload Workers Welfare Board

25-Jul-2026 , 05:05:22 pm | By CASANSAAR print

CBDT Grants Section 10(46) Tax Exemption to Kerala Headload Workers Welfare Board

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 23rd July, 2026

S.O. 4047(E).— Whereas, section 10 (46) of the Income-tax Act, 1961 (43 of 1961) provided for exemption of specified income of certain bodies or authorities or Boards or Trusts or Commissions as may be notified by the Central Government in the Official Gazette for the purposes of that section;

And whereas, the Income-tax Act, 1961 (43 of 1961) was repealed by section 536 (1) of the Income-tax Act, 2025 (30 of 2025);

And whereas, section 536(2)(a) and (b) of the Income-tax Act, 2025 (30 of 2025), inter alia, provides that irrespective of the repeal of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Act of 1961) and subject to sub-section (4) thereof, nothing shall affect—

(i) the previous operation of the provisions of the Act of 1961 and any order or anything duly done or suffered thereunder; or

(ii) any right, privilege, obligation or liability acquired, accrued or incurred under the Act of 1961 or orders under that Act;

And whereas, section 536(2)(c) of the Income-tax Act, 2025 (30 of 2025) provides that the provisions of the Act of 1961 shall continue to apply to any proceeding pending on the date of commencement of the Income-tax Act, 2025 (30 of 2025) and to any proceedings initiated on or after the 1st April, 2026 (including notices, assessment, reassessment, recomputation, rectification, penalty, reference, revision and appeals) in respect of any tax year beginning before the 1st April, 2026 and such proceedings shall be carried out as per the procedure specified in the Act of 1961;

And whereas, section 536(2)(e) of the Income-tax Act, 2025 (30 of 2025) provides that any proceeding pending on the date of its commencement before any income-tax authority or any other authority constituted under the repealed Income-tax Act, Appellate Tribunal, or any court, by way of application, appeal, reference or revision or by any other means, shall be continued and disposed of as if this Act had not been enacted;

Now, therefore, in pursuance of the provisions of section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025 (30 of 2025), the Central Government hereby notifies, for the purposes of section 10(46) of the Act of 1961, "Kerala Headload Workers Welfare Board, Kochi (PAN AAAJK1176F)", a board constituted by the State Government of Kerala, in respect of the following specified income arising to that board, namely:—

(a) Amount received in the form of grants-in-aid and loan from Government;
(b) Levy collected under the Kerala Headload Workers Act, 1978 (20 of 1980), Kerala Headload Workers Rules, 1981 and schemes thereunder;
(c) Registration fees collected from members registered with the board as beneficiaries;
(d) Sums received as deposit from employers as per Para 27 of the Kerala Headload Workers (Regulation of Employment and Welfare) Scheme, 1983;
(e) Contribution from members as defined under the Kerala Headload Workers Act, 1978;
(f) Interest on loans and advances given to staff of the board and workers;
(g) Sums received as wages from employers as per Para 24(a) and 24(b) of the Kerala Headload Workers (Regulation of Employment and Welfare) Scheme, 1983; and
(h) Interest earned on (a) to (g) above.

2. This notification shall be effective subject to the conditions that Kerala Headload Workers Welfare Board, Kochi—

(a) shall not engage in any commercial activity;
(b) its 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 provisions of section 139(4C)(g) of the Income-tax Act, 1961.

3. Failure to comply with these conditions shall result in initiation of penal action under the provisions of the Income-tax Act, 1961 and withdrawal of exemption granted under section 10(46).

4. This notification shall be deemed to have been applied for the assessment years 2025-26 and 2026-27 relevant to the financial years 2024-25 and 2025-26.

[Notification No. 95/2026/F. No.300196/78/2024-ITA-I]

HARDEV SINGH
Under Secretary

Explanatory Memorandum

It is certified that the interests of no person are being adversely affected by giving retrospective effect (with effect from the year of its application filed before the Central Board of Direct Taxes or Income-tax Department) to this notification.