The Central Board of Direct Taxes (CBDT) notified income tax exemption to ‘Manipur State Rural Road Development Agency’ under Section 10(46) of the Income Tax Act, 1961.
Manipur State Rural Road Development Agency (MSRRDA) was set up in the year 2004-05 to implement Pradhan Mantri Gram Sadak Yojana (PMGSY) which includes Bharat Nirman (BN) and Border Area Development Programme (BADP) in Manipur State. Presently 11 (eleven) dedicated working divisions (PIUs) from PWD, IFCD and Electricity Department, Manipur are under the administrative control of MSRRDA for implementation of PMGSY. Now MSRRDA is the Sole Agency to implement PMGSY works having Administrative Control over the PIUs.
As per section 10(46) of the Income Tax Act, exemption can be provided to income earned by a notified body, authority, board, trust or commission which is set up or constituted by a Central State or Provincial Act or constituted by the Central Government or State Government with the object of regulating or administering an activity for the benefit of the general public.
As per the present notification, the receipts by the MSRRDA by way of fund received for PMGSY from Ministry of Rural Development, Government of India and the interest received from Bank on above fund are exempted from income tax subject to conditions specified in the Act.
Subscribe Taxscan Premium to view the Judgment
