U/s. 35AC, IT ACT, 1961 - Eligible Projects or Schemes, Expenditure On - Sevalaya, Kasuva, Tamil Nadu - S.O.1509 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 26/2016 New Delhi, the 26th April, 2016 S.O.1509 (E). - Whereas by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 1145(E) dated the 16th July, 2007 , issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961) , the Central Government had notified at serial number 3, Sevalaya School expenses project to meet the running expenses of the school and to build corpus fund by Sevalaya, Kasuva Village, Pakkam PO near Thiruninravur, 602024, Tamil Nadu , as an eligible project or scheme for a period of three years beginning with financial year 2007-08;which was further extended vide notification S.O. No.638(E) dated 22.03.2010 for a period of three years ending with financial year 2012-13 and which was further extended vide notification S.O. No. 3847(E) dated 27.12.2013 for a period of three years ending with financial year 2015-16; And whereas the said project or scheme is likely to extend beyond nine years; And whereas the project cost is likely to enhance from ₹ 4.00 crore including a corpus fund of ₹ 3.00 crore to ₹ 10.00 crore including a corpus fund of ₹ 3.00 crore; And whereas the National Committee for Promotion of Social and Economic Welfare, being satisfied that the said project or scheme is being executed properly, made a further recommendation under sub-rule (5) of rule 11M of the Income-tax Rules, 1962 for extending the said project or scheme for a further period of three years.and for amending the project cost from ₹ 4.00 crore including a corpus fund of ₹ 3.00 crore to ₹ 10.00 crore including a corpus fund of ₹ 3.00 crore. However, the exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules 2014 ; Now, therefore, the Central Government, in exercise of the powers conferred by sub- section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), (a) hereby notifies the scheme or project Sevalaya School expenses project to meet the running expenses of the school and to build corpus fund by Sevalaya, Kasuva Village, Pakkam PO near Thiruninravur, 602024, Tamil Nadu , for a further period of three years beginning with the financial year 2016-17 i.e. 2016-17, 2017-18 and 2018-19 ; (b) further amends the said notification number S.O. 1145(E) dated the 16th July, 2007 , to the following effect, namely :- In the said notification, in the Table against serial number 3 in column (4), relating to maximum amount of cost to be allowed as deduction under section 35 AC of Income Tax Act, 1961 , for the letters, figures and words Rs.4.00 crore including a corpus fund of ₹ 3.00 crore , the letters, figures and words Rs. 10.00 crore including a corpus fund of ₹ 3.00 crore shall be substituted. (c). The exemption u/s 35AC will not apply to the funds received under Schedule VII of the Section 135 of the Companies Act and Companies (CSR) Rules 2014. [F.No.V. 27015/1/2016-SO (NAT.COM)] MAKKHAN LAL MEENA,Dy. Secy. (National Committee)