Centre Grants Income Tax Exemptions to Credit Guarantee Fund Trust for Animal Husbandry and Karnataka Construction Workers’ Welfare Board

The Centre has granted "income tax exemptions" to the "Credit Guarantee Fund Trust for Animal Husbandry" and the "Karnataka Construction Workers' Welfare Board." The exemptions, which are a significant victory for the state bodies, were made on the grounds that their income is derived from activities that are for the public good. The ruling clarifies that a government body cannot be taxed on its income if it is not a commercial enterprise. The decision is a crucial reminder to all that such a body cannot be treated as a commercial enterprise.