Tax Implications for Kerala Autorickshaw Workers Welfare Fund

Overview of Notification No. 41/2024-Income Tax

Notification No. 41/2024-Income Tax, dated April 24, 2024, issued by the Ministry of Finance under the Income Tax Act, 1961, is pivotal for the Kerala Autorickshaw Workers Welfare Fund Scheme in Kollam. This notification, aligned with sub-section 46 of section 10, identifies specific incomes pertinent to the scheme, such as grants, contributions, and registration fees.

This notification grants legal recognition and outlines the tax implications associated with the Kerala Autorickshaw Workers Welfare Fund Scheme. By specifying eligible incomes and conditions, it sets a regulatory framework for compliance and financial transparency. Stakeholders managing and operating the scheme are required to follow the outlined provisions to ensure adherence to income tax regulations.

Details of the Notification

Issuance by the Ministry of Finance

The Central Government has exercised its powers under clause (46) of section 10 of the Income Tax Act, 1961 (43 of 1961), to officially recognize the 'Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam', governed by a Board constituted by the Government of Kerala. The following specified incomes are recognized for this authority:

1. Grants received from the State Government of Kerala.
2. Contributions from workers registered in the scheme.
3. Contributions from self-employed persons and employers for workers registered in the scheme.
4. Registration fees.
5. Interest accruing on bank deposits.

Conditions for Effectiveness

This notification is effective under the following conditions:

• The Kerala Autorickshaw Workers Welfare Fund Scheme, Kollam, must not conduct any commercial activities.
• The nature of the specified income and activities must remain consistent during the financial years.
• The Fund must file an income return according to clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.