PSU Watch logo

| IRCON emerges as the lowest bidder in NHAI & Chennai Metro projects |   | Govt aiming for 10% reduction in India’s crude oil import by next year: PNGRB Secretary |   | Mahanagar Gas Ltd hikes gas prices for 3rd time in six weeks |   | India to allow international flight operations from Dec 15 |   | RBI accepts 21 recommendations on ownership of private banks |  

Govt exempts 316 District Mineral Foundation Trusts from Income Tax

The Ministry of Finance has exempted 14 more District Mineral Foundation (DMF) Trusts from payment of Income Tax (I-T)
Govt exempts 316 District Mineral Foundation Trusts from Income Tax
Govt exempts 316 District Mineral Foundation Trusts from Income Tax
  • The exemption will result in more fund availability with the Trust, thereby ensuring better implementation and outcome-oriented activities, said Pralhad Joshi
  • On September 10, 2021, the Finance Ministry notified 165 DMFs as ‘class of Authority’ in respect of the income arising to DMF

New Delhi: With the Ministry of Finance exempting 14 more District Mineral Foundation (DMF) Trusts from payment of Income Tax (I-T), the total number of DMFs that have been given an exemption has increased to 316. In a tweet on Saturday, Union Minister for Mines Pralhad Joshi said, “Collections under DMF, as well as interest accrued, will be exempt from Income Tax.” “I thank @FinMinIndia for exempting 165 Trusts. Adding to earlier exemption of 151, now a total of 316 Trusts stand exempted from IT,” the minister said on Twitter.

‘I-T exemption will result in more fund availability for DMFs’

The minister said that the exemption will result in more fund availability with the Trust, thereby ensuring better implementation and outcome-oriented activities for the welfare of the people affected by mining. “The DMF is a non-profit statutory ‘Trust’ for every Indian district affected by mining-related operations. It is an initiative of the PM @narendramodi ji led Govt to ensure that funds be collected under DMF and utilised for welfare of those affected by mining-related operations,” said Joshi on Twitter.

ALSO READ

The fund comprises of contribution by lease holders, interest received from lease holders for late payment, any penalty charged to lease holder, income from interest on fund, interest received on saving bank accounts and interest received on excess fund invested in term deposit. Exemption will be available provided the trust will not engage in any commercial activity. Its activities and the nature of the specified income will remain unchanged throughout the financial years and it will file income tax return along with audit report.

DMF

District Mineral Foundation (DMF) is a non-profit statutory trust that exists in every district affected by mining-related operations. It is an initiative of the government to ensure that funds are collected under DMF and utilised for the welfare of people affected by mining activities. So far, DMFs have been set up in 600 districts in 22 states in the country which have framed DMF rules.

The Ministry of Finance has taken measures to get the DMF trust exempted from Income Tax. The Section 10(46) of the Act was amended by Finance Act 2018 so that all the DMF Trusts could be notified as ‘Class of Authority.’ Accordingly, the Ministry of Finance, Department of Revenue on September 10, 2020 notified 151 ‘District Mineral Foundation Trusts’ and on September 10, 2021, notified 165 DMFs as ‘class of Authority’ in respect of the income arising to DMF.  Hence a total of 316 District Mineral Foundation Trusts have been notified as ‘class of Authority’ in respect of the income arising to DMF on account of contributions by lease holders to DMF as per the MMDR Act, interest on late payment of DMF contributions by miners and such other specified collections.

(PSU Watch- India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)