Official Clarity: Tax Exemption for Forum of Regulators Under Income Tax Act, 1961
The Central Board of Direct Taxes (CBDT) has exempted the Forum of Regulators (FOR), which oversees India's electricity sector, from income tax on specific income streams under Section 10(46) of the Income-tax Act. This retrospective exemption covers government grants, membership fees, and bank interest, providing financial relief and enabling FOR to more effectively align power regulations, promote best practices, and protect consumer interests
The Indian government, through the CBDT, has granted a significant income tax exemption to the Forum of Regulators (FOR), an important body that oversees India's electricity sector. This decision, under Section 10(46) of the Income-tax Act, makes FOR's main income sources tax-free.
What is FOR?
Established under the Electricity Act, 2003, FOR unites central and state electricity regulators. Its mission is to align power regulations, share best practices, and protect consumer interests across India.
The Exemption Details:
The notification specifically exempts three types of income for FOR:
- Grants from the government.
- Membership fees from electricity regulatory commissions.
- Interest earned on its bank deposits.
Key Highlights:
- Retrospective Effect: This exemption applies from 2011-12 to 2015-16, offering clarity and financial relief for those years.
- Conditions Apply: FOR must stay non-commercial, keep its activities, and continue filing income tax returns.
Why it Matters:
This tax break is a significant win because it:
- Frees up funds for FOR to invest in better regulation and research.
- Increases efficiency by lowering tax compliance burdens.
- Recognizes FOR's crucial role as a non-profit public service entity.
- Ultimately leads to a more stable and fair electricity sector for consumers.
In summary, the government is enabling FOR to perform its essential work more effectively, benefiting the entire power ecosystem in India.
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Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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