U/s. 35AC, IT ACT, 1961 - Eligible Projects or Schemes, Expenditure On - Bellur Krishnamachar & Seshamma Smaraka Nidhi Trust, Bangalore - S.O.1524 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 41/2016 New Delhi, the 26th April, 2016 S.O.1524 (E). - Whereas by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O.466(E) dated 29th March, 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, Setting up and running of a school and a medical centre cum hospital, especially for SC/ST and other economically weaker sections of the rural society by Bellur Krishnamachar Seshamma Smaraka Nidhi Trust, No. 864, 25th Cross, 51st Main, I stage, Kumaraswamy layout, Bangalore 560078 , as an eligible project at the estimated cost of ₹ 22.46 crore including a corpus fund of ₹ 15.00 crore for a period of three years ending with financial year 2009-10; which was further extended vide notification number S.O. 659 (E) dated 22nd March, 2010 for a period of three years ending with Financial year 2012-13 and the project was further extended vide notification number S.O. 3162(E) dated 17.10.2013 for a period of three years ending with financial year 2015-16; And whereas the said project or scheme is likely to extend beyond 6 years; And whereas the project cost is likely to enhance from ₹ 22.46 crore including a corpus fund of ₹ 15.00 crore to ₹ 41.46 crore including a corpus fund of ₹ 26.00 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 specifying the said project or scheme for a further period of three years and for amending the project cost from ₹ 22.46 crore including a corpus fund of ₹ 15.00 crore to ₹ 41.46 crore including a corpus fund of ₹ 26.00 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 Setting up and running of a school and a medical centre cum hospital, especially for SC/ST and other economically weaker sections of the rural society which is being carried out by Bellur Krishnamachar Seshamma Smaraka Nidhi Trust, No. 864, 25th Cross, 51st Main, I stage, Kumaraswamy layout, Bangalore 560078 , as an eligible project or scheme, for a further period of three years commencing with financial year 2016-17 i.e. 2016-17, 2017-18 and 2018-19; (b) further amends the said notification number S.O. 466(E) dated 29th March, 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 of 35AC of Income Tax Act, 1961 for the letters, figures and word Rs.22.46 crore including a corpus fund of ₹ 15.00 crore the letters, figures and word Rs. 41.46 crore including a corpus fund of ₹ 26.00 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)