NOTIFICATION
NO. 137/2007, DATED 30-3-2007
In exercise
of powers conferred by the sub-clause (iv)
of the clause (23C) of section 10 of
the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that any
income received by any person on behalf of 'Tamil Nadu Ex-Services
Personnel
Benevolent Fund, Directorate of Ex-Serviceman's Welfare, 22, Raja Muthiah Salai,
Chennai-600003' (hereinafter the 'Institution')
shall not be included in the total income
of such person subject to the following conditions, namely:-
(a) the
Institution will apply its income, or accumulate for application, wholly
and exclusively to the objects for which it is established and in a case
where more than fifteen per cent of its income is accumulated on or after
the 1st day of April,
2002, the period of the accumulation of the amount
exceeding fifteen per cent of its income shall in no case exceed five years;
(b) the
Institution will not invest or deposit its fund (other than voluntary
contributions received and maintained in the form of jewellery, furniture,
etc.) for any period during the previous years relevant to the assessment
years mentioned above otherwise than in any one or more of the forms or
modes specified in sub-section (5) of the section 11;
(c) this
notification will not apply in relation to any income being profits and
gains of business, unless the business is incidental to the attainment of the
objectives of the Institution and separate books of account are maintained
in respect of such business;
(d) the
Institution will regularly file its return of income before the Income tax
authority in accordance with the provisions of the Income-tax Act, 1961;
(e) that
in the event of dissolution of the Institution, its surplus and the assets
will be given to an organization with similar objectives.
(f) The
Institute will get its accounts audited by an accountant as defined in
Explanation below sub-section
(2) of section 288 and furnish along with
the return of Income. The report of such audit in the prescribed form duly
signed and verified by such accountant and setting forth such particulars
as may be prescribed.
2.
This notification is applicable only to the recipients of income on behalf of the
Institution and not to any other receipt or income of such recipients. Taxability or,
otherwise of the income of the Institution would be separately considered as per the
provisions of the Income-tax Act, 1961.
3. This notification is applicable
for Assessment Year 2002-03 and onwards.
4.
The above notification is liable to be rescinded by the Central Government, if it is
subsequently found that the activities of the Institution are not genuine or if they are not
carried out in accordance with all or any of the conditions subject to which it was
notified.
[F. No.197/144/2006-ITA-I]