Karnataka State Rural Livelihood Promotion Society granted tax exemption on grants and bank interest, subject to compliance conditions. Notification grants tax exemption under section 10(46) to Karnataka State Rural Livelihood Promotion Society for grants from the Central Government, grants from the State Government of Karnataka, and interest on bank deposits, subject to conditions: no commercial activity, unchanged activities and specified income across financial years, and filing returns under clause (g) of sub-section (4C) of section 139; non-compliance may lead to penal action and withdrawal of exemption, and the notification has retrospective and specified prospective application to listed assessment years.