Central Government Grants Income Tax Exemption for Core Settlement Gurantee Fund:

Central Government Grants Income Tax Exemption for Core Settlement Gurantee Fund The Central Board of Direct Taxes (Ministry of Finance) has recently released Notification S.O. 115(E) dated 8th January, 2026, notifying the income tax exemption to the Core Settlement Guarantee Fund, established by AMC Repo Clearing Limited for the income specified under Explanation (iii) of Section 10(23EE) of the Income Tax Act, 1961.

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The tax exemption has been given by the Central Government using its power given under clause (23EE) of section 10 of the Income-tax Act, 1961. This benefit is applicable for the assessment year 2024-25 and subsequent assessment years. However, the income tax exemption is subject to some conditions that must be followed. The exemption must only be provided if the Core Settlement Guarantee Fund files an income tax return as required under Section 139(4C) of the Income Tax Act, 1961. Additionally, the AMC Repo Clearing Limited must continue to remain a recognised clearing corporation by the Securities and Exchange Board of India (SEBI).