STANDARDIZING THE PROCESS OF FILLING APPLICATION UNDER SECTION 10(46) OF THE INCOME TAX ACT, 1961

Date: 24^th June 2013

Under section 10(46) of the income tax act, specified income arising to a body or authority or Board or Trust or Commission, established or constituted by or under a Central or State Act or by a Central or State Government with the object of carrying out any activity for the benefit of general public would be exempt from tax if the said entity is not engaged in any commercial activity. The entity eligible to claim tax exemption under section 10(46) is required to be notified by the Central Government in the official Gazette.

In order to standardize the manner of filling application under section 10(46) and to avoid procedural delay in processing the same applicants are advised to file the application along with requisite enclosures to the Commissioner of Income Tax / Director of Income Tax under whose jurisdiction their case falls. The applicants are further advised to adopt the format laid down in Para 3 below while submitting the application u/s 10(46) of the IT act. The applicants shall also send a copy of the aforesaid application along with all its enclosures to the Under Secretary (ITA – 1), Central Board of Direct Taxes, accompanied by the acknowledgement receipt forwards evidence of having furnished the application in the office of jurisdictional CIT/ DIT.

The format of Application Seeking Notification u/s 10(46) shall be as under :-

Sr. No.	Requirements	Details
1	Name of the Applicant
2	Address
3	PAN
4	Status
5	Returned income of previous two years and taxes Paid (if applicable). PI. Enclose copy of returns filled
6	Designation of Assessing Officer
7	Eligible Category           i.        Body          ii.        Authority         iii.        Board        iv.        Trust         v.        Commission        vi.        Any Other (PI. Specify)
8	Object/ Purpose for which set up / created. PI. File Supporting documents
9	Whether created with object of regulating or administering any activity for benefit of general public? If yes, details of activity so regulated or administered. PI. file supporting documents
10	Nature of Activity
11	Are any of the activities carried out commercial in nature? PI. furnish justification to answer.
12(A)	Whether established or constituted by a Central or State Act? PI. give details
(B)	Whether constituted by a Central or State Government? PI. specify
(C)	Copy of such Deed/Notification/Act or other relevant documents establishing or constituting the entity seeking exemption.
13	Nature of Revenue Streams
14	Nature of income sought to be notified for the purpose section 10(46)
15	Basis of seeking notification u/s 10(46)
16 (A) (B)	Whether already registered u/s 12A? If yes, PI. furnish copy of order granting registration. If already registered u/s 12A, Pl. explain why notification u/s 10(46) is being sought.
17	Whether a)   Exemption u/s 11 &12 has been denied by the assessing officer. If yes, when and on what grounds. b)   Registration u/s 12AA has been rejected earlier. If yes, when and on what grounds.
18	Whether Approval u/s 10(23C)(iv) has been a)   Applied for (If yes, when) b)   Granted (if yes, PI. furnish the copy of relevant order) c)   Such request has been rejected earlier. If yes, when and on what grounds. PI. furnish a copy of relevant order.
19	PI. furnish copy of Balance Sheet , Profit & loss Account or Income & Expenditure statement of last three years, along with schedules
20	Whether the accounts are required to be audited? If yes, whether complied with?
21	Whether any penalty imposed or prosecution launched for any violation of law in the past? If yes, PI. inform when such order was passed and what was the violation. Copy of relevant order is enclosed.
22	Any other information or document/ information brochure / Annual Report etc.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in