CBDT exempts Specified Income of Kerala Toddy Workers Welfare Fund from Taxation

The Central Board of Direct Taxes (CBDT) has granted a tax exemption to the Kerala Toddy Workers' Welfare Fund Board. The exemption has been notified under Section 10(46) of the Income Tax Act. This section provides an exemption for specified incomes of certain government-constituted bodies that are not engaged in any commercial activity. The notification specifies that the income earned by the welfare fund, which is used for the social security and welfare of toddy workers in Kerala, will not be subject to income tax. This is a significant move that will allow the board to utilize its entire income, including government grants and contributions, for the benefit of its members without any tax liability. It recognizes the board's role as a non-profit entity dedicated to the welfare of a specific segment of the labor force.