Income Tax

CBDT exempts income of the National Skill Development Corporation u/s 10(46)

CBDT exempts income of the National Skill Development Corporation u/s 10(46) of the Income Tax Act 1961

CBDT vide Notification No. 10 /2022 has exempted the following income of the National Skill Development Corporation

(a) Amount received in the form of Government grants.

(b) Amount received in the form of grants for skill development other Government grants;

(c) Long-term or short-term capital gain out of investment in an organisation for skill development;

(d) Dividend and royalty from skill development venture supported or funded by National Skill Development Corporation;

(e) Income from Accreditation Fees, Registration fees, fees from training partners and other cost recovery from its skill development activities;

(f) Administrative & Mobilization fees from the scheme management;

(g) Income from institutions outside India for skilling, Training & Employability;

(h) Interest on loans to Institutions for skill development;

(i) Miscellaneous income, like sale of scrap, Profit on sale of assets, RTI application fees, forfeiture of Bank Guarantee, interest on income tax refund, excess provision written back; and

(j) Interest earned on (a) to (i) above.

The exemption is subject to the condition that National Skill Development Corporation,-

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income remain unchanged throughout the financial years; and

(c) shall file returns of income in accordance with the provision of clause (g) of sub-section (4C) section 139 of the Income-tax Act, 1961.

The exemption is applicable with respect to the financial years 2021-2022, 2022-2023, 2023-2024, 2024-2025 and 2025-2026.

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