Income of Kerala Toddy Workers Exempt u/s 10(46): CBDT

The Central Government has announced that the “Kerala Toddy Workers’ Welfare Fund Board” will not have to pay income tax on some specified types of income. This Board was set up under the Kerala Toddy Workers’ Welfare Fund Act, 1969. The following income is exempt from taxation:

• All sums the Board receives under the Kerala Toddy Workers’ Welfare Fund Act, 1969.
• Contributions made by the members of Kerala Toddy Workers’ Welfare Fund Act, 1969
• Interest earned from its bank deposits.

This exemption is applicable for the assessment years 2022-23 to 2025-26 (Financial year 2021-22 to 2024-25. However, there are certain conditions that must be met by the board to qualify for the exemption on the above income types. These are as follows:

• The board must not be involved in any commercial activities.
• The activities and the nature of income must remain the same throughout the financial year.
• The board must file its income tax return as required under the Income Tax Act, 1961.

Refer to the official notification for more information.