Central Board of Direct Taxes (CBDT) issued notification no. 11/2026 dated 21.01.2026 to provide exemption u/s 10(46) of the Income tax Act, 1961 (43 of 1961) to ‘Karnataka State Rural Livelihood Promotion Society’ (PAN AACAK0581H), a body constituted by the Government of Karnataka, in respect of the following specified income arising to the said body namely, as follows:
(a) Grants received from the Central Government;
(b) Grants received from the State Government of Karnataka; and
(c) Interest earned on bank deposits.
This notification shall be effective subject to the conditions that Karnataka State Rural Livelihood Promotion Society –
(a) shall not engage in any commercial activity;
(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.
Failure to comply with these conditions may result in the initiation of penal actions under the provisions of the Income Tax Act, 1961, and withdrawal of the exemption granted u/s 10(46) of the Act.
This notification shall be deemed to have been applied for the assessment years 2024-25, 2025-26 relevant to the financial years 2023-24, 2024-25 and shall be applicable for assessment years 2026-27, 2027-28 & 2028-29 relevant to the financial years 2025-26, 2026-27 & 2027-28.
Explanatory Memorandum
It is certified that no person is being adversely affected by giving retrospective effect [with effect from the year of application made before the Board/Department] to this notification
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