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Core Purpose

The Central Government notifies the Karnataka State Rural Livelihood Promotion Society under clause (46) of section 10 of the Income-tax Act, 1961, for exemption of specified incomes.

Detailed Summary

Notification S.O. 332(E), issued by the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, on January 21, 2026, under Notification No. 11/2026/F. No. 300196/65/2024-ITA-I, designates the 'Karnataka State Rural Livelihood Promotion Society' (PAN AACAK0581H), a body constituted by the Government of Karnataka, for the purposes of clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961). This notification specifies that grants received from the Central Government, grants received from the State Government of Karnataka, and interest earned on bank deposits for this society are exempt. The exemption is subject to conditions: the society must not engage in commercial activity, its activities and income nature must remain unchanged throughout the financial years, and it must file income returns per clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961. Non-compliance may lead to penal actions and withdrawal of the exemption. This notification is deemed to have been applied for assessment years 2024-25 and 2025-26 (relevant to financial years 2023-24, 2024-25) and is applicable for assessment years 2026-27, 2027-28, and 2028-29 (relevant to financial years 2025-26, 2026-27, 2027-28). An Explanatory Memorandum certifies that no person is adversely affected by the retrospective effect.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-21012026-269494 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 304] NEW DELHI, WEDNESDAY, JANUARY 21, 2026/MAGHA 1, 1947 463 GI/2026 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 21st January, 2026 S.O. 332(E).- In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, 'Karnataka State Rural Livelihood Promotion Society' (PAN AACAK0581H), a body constituted by the Government of Karnataka, in respect of the following specified income arising to the said body namely, as follows: (a) Grants received from the Central Government; (b) Grants received from the State Government of Karnataka; and (c) Interest earned on bank deposits. 2. This notification shall be effective subject to the conditions that Karnataka State Rural Livelihood Promotion Society – (a) shall not engage in any commercial activity; (b) 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 provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961. 2.1 Failure to comply with these conditions may result in the initiation of penal actions under the provisions of the Income Tax Act, 1961, and withdrawal of the exemption granted u/s 10(46) of the Act. 3. This notification shall be deemed to have been applied for the assessment years 2024-25, 2025-26 relevant to the financial years 2023-24, 2024-25 and shall be applicable for assessment years 2026-27, 2027-28 & 2028-29 relevant to the financial years 2025-26, 2026-27 & 2027-28. [Notification No. 11/2026/F. No. 300196/65/2024-ITA-I] HARDEV SINGH, Under Secy. Explanatory Memorandum It is certified that no person is being adversely affected by giving retrospective effect [with effect from the year of application made before the Board/Department] to this notification. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR Digitally signed by SARVESH KUMAR SRIVASTAVA Date: 2006.01.21 20:09:31 +0530 SRIVASTAVA

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