Exemption under Section 35AC extended for Swayamkrushi's training and housing project; corporate CSR Schedule VII funds excluded.
The Central Government notifies Swayamkrushi's "Training Centre and Housing Facilities" as an eligible project for the income-tax exemption under Section 35AC for three years starting 2015-16 at the approved cost of Rs. 6.22 crore, following the National Committee's recommendation, and clarifies that the 35AC exemption does not apply to funds received under Schedule VII of the Companies Act and the Companies (CSR) Rules, 2014.

Tax exemption extension for Aravali Medical and Research Centre; funds under Schedule VII CSR framework excluded.
The Central Government notified a further three-year extension of tax-exempt status for Aravali Medical and Research Centre works by Aravali Vikas Mandal, preserving the approved project cost, pursuant to a National Committee recommendation under the Income-tax Rules. The exemption expressly excludes funds received under Schedule VII of the Companies Act and the Companies (CSR) Rules.

Deduction under Section 35AC limited by CSR funds exclusion, with the notified project's cost increased and eligibility extended.
Notification designates the Prabhakar Patil Education Society's Education Development Project as eligible under Section 35AC, extends eligibility for three financial years beginning 2015-16, and substitutes the previously specified maximum allowable project cost with an increased amount. The notification also provides that the Section 35AC exemption does not apply to funds received under Schedule VII of Section 135 of the Companies Act and the Companies (CSR) Rules.

Corrigendum to notification corrects the registered address of a named trust in a Ministry of Finance notice.
Corrigendum rectifies the registered address of 'Blind Persons' Association' in the prior Gazette notification S.O. 3455(E), directing that the address published earlier be read as the updated address; the correction is effected by Notification No. 2/2016 issued by the Department of Revenue.

Notification correction: date of Income Tax notification for Ayodhya Charitable Trust amended to 7th December 2015.
The Ministry of Finance (Department of Revenue) issues Corrigendum Notification No. 1/2016 (S.O. 1229(E)) dated 29th March 2016, correcting Government Notification S.O. 3442(E) in the Gazette so that the date originally shown as "17th March 2013" for Ayodhya Charitable Trust, Pune, is to be read as "7th December, 2015."

National Savings Certificates now carry five-year maturity with specified annual interest accruals and graduated encashment payouts.
The amendment sets a five-year maturity for certificates purchased on or after 1 April 2016, with annual interest accrued and interest for the first four years deemed reinvested and aggregated with face value. It specifies interest amounts per Rs.100 for each year and provides a graduated encashment payout table for encashments after three years, applying proportionately to other denominations and subject to discount adjustment.

Post Office monthly income account: 7.8% p.a. interest for deposits effective on/after April 1, 2016.
Inserts clause (m) into rule 8(1) of the Post Office (Monthly Income Account) Rules, 1987 to prescribe an interest rate of 7.8 per cent per annum for deposits made on or after 1 April 2016; the Amendment Rules, 2016 are deemed to have come into force on that date under the powers of section 15 of the Government Savings Banks Act, 1873.

Tax exemption notification recognizes Maharashtra State Board of Technical Education's specified income subject to noncommercial and filing conditions.
Notification under Section 10(46) designates the Maharashtra State Board of Technical Education for specified-income treatment, listing covered income categories - fees, fines and penalties; printed educational material receipts; scrap or waste paper; receipts from other government bodies; interest on surplus funds; rent from let-out properties; royalty or license fees; dividend from a specified corporation; and capital gains from asset disposal. The notification conditions this recognition on non-engagement in commercial activity, unchanged nature of activities and income, and prescribed return filing, and applies retrospectively to the stated financial years.

Tax exemption under section 10(46) designates Andhra Pradesh Electricity Regulatory Commission for specified non-commercial income treatment
Notification under section 10(46) designates the Andhra Pradesh Electricity Regulatory Commission for specified income treatment comprising licence fees, grants-in-aid, and interest on investments; conditional on no commercial activity, unchanged activities and income nature, and prescribed income tax return filing; applicability is deemed for the 2014-2015 financial year and extends through 2018-2019.

Investment in Stock Certificate expands permissible tax-exempt investments under Income-tax Rules to cover Sovereign Gold Bonds.
Amendment adds investment in Stock Certificate, as defined in the Sovereign Gold Bonds Scheme, 2015, to the list of permissible investments under the Income-tax Rules by inserting a new clause into the existing rule governing eligible investments, thereby aligning the rules with the Sovereign Gold Bonds instrument definition.

National Savings Certificates now accrue interest at government notified rates calculated on an annual compounding basis for new purchases.
The Rules are amended to provide that for National Savings Certificates purchased on or after commencement, interest shall be payable at the rate notified by the Central Government and shall be calculated on an annual compounding basis.

Industrial park notification permits the specified undertaking to claim section 80-IA tax deduction subject to scheme compliance.
Notification under section 80-IA designates M/s. Ascendas IT Park (Chennai) Ltd.'s "Crest" and "Zenith" projects as an industrial park from commencement, subject to Annexure terms: specified minimum floor area, allocable area composition, minimum number of industrial units, single-undertaking ownership, limits on unit occupancy, activity restrictions per the Industrial Park Scheme, 2008, separate accounting and timely tax filing, annual Form IPS-II reporting, and conditions enabling withdrawal of approval for misinformation, plan amendments or non-compliance.

Statement of Financial Transactions inclusion expands reporting obligations to complement annual information returns for specified financial transactions.
The amendment adds Statement of Financial Transactions alongside Annual Information Return, substituting "return" with "return or statement" across specified sub rules and provisos, revising administrative designations to include the statement, and updating Form No.61A to the same effect; the rule is deemed effective from 1 April 2015 and applicable to the specified financial transactions for the stated financial period.

Period of holding for converted securities includes prior bond or debenture holding, affecting capital gains characterisation.
The rule prescribes that where a capital asset in the form of a share or debenture becomes the assessee's property by reason of the specified transfer, the period of holding of that capital asset shall include the period for which the bond, debenture, debenture stock or deposit certificate was held by the assessee prior to conversion.

Permanent establishment rules and tax allocation under India-Indonesia treaty define taxing rights and eliminate double taxation.
The Agreement allocates taxing rights between India and Indonesia to eliminate double taxation and prevent fiscal evasion by residents, defining residency tie breakers and a broad concept of permanent establishment with time thresholds and agency rules. Business profits attributable to a PE are taxable in the source State on an arm's length basis; dividends, interest, royalties and fees for technical services are subject to limited source taxation with specified exemptions and effective connection carve outs. Administrative provisions establish mutual agreement, exchange of information, confidentiality limits, and assistance in collection, together with anti avoidance and non discrimination safeguards.

Tax exemption for notified authority: specified incomes of National Biodiversity Authority exempt subject to non commerciality and compliance.
Notification under clause (46) of section 10 notifies the National Biodiversity Authority for specified incomes: grants in aid from the Government of India; interest; benefit sharing fees and royalties; and penalties and application fees. The notification is conditional on the Authority not engaging in commercial activity, maintaining unchanged activities and nature of specified income across financial years, and filing returns as required by clause (g) of sub section (4C) of section 139; it is effective for the period 01.06.2011-31.03.2012 and financial years 2012 13 to 2015 16.

Tax exemption under Section 10(46) covers specified Board income subject to non-commerciality and filing conditions.
The Karnataka Urban Water Supply and Drainage Board is notified as eligible for exemption under Section 10(46) for specified incomes: establishment and supervision charges prescribed by the Karnataka Public Works Department Accounts Code; water charges from local bodies and consumers; interest on investments and fixed deposits; rent from letting 'JAL BHAWAN'; and forfeited earnest money. The exemption is conditional on the Board not engaging in commercial activity, maintaining unchanged activities and income character, and filing income-tax returns as required by clause (g) of sub-section (4C) of section 139.

Section 35AC deduction: approval of specified charitable projects for deduction over a three year approval period; CSR funds excluded.
Central Government notification authorises specified non profit institutions, on the National Committee's recommendation, as eligible for income tax deduction treatment for donations to their listed projects; for each entry the Table specifies the eligible project or scheme, the project's estimated cost and the maximum amount of that cost that may be allowed as a deduction. Approvals are time limited to a consecutive three year approval period, and contributions governed by the corporate social responsibility statutory schedule are expressly excluded from the deduction.

Offshore fund manager regime clarified: eligibility, arm's length remuneration, documentation and approval under new rules determine tax benefits.
Rules for the offshore fund manager regime under section 9A prescribe look-through treatment for institutional investors meeting conditions, due diligence and declaration processes to ascertain Indian participation, and limited grace periods for temporary non-fulfilment of eligibility conditions. Remuneration to fund managers is treated as an international transaction between associated enterprises for arm's-length determination; fund managers must maintain transfer pricing documentation, obtain an accountant's report in Form 3CEJ and furnish annual statements electronically in Form 3CEK. A Board approval process and conditions for withdrawal of approval are provided.

Depreciation for oil wells amended to a specified written-down-value rate under Income-tax Rules, effective thereafter.
The Income-tax (4th Amendment) Rules, 2016 insert a new sub-item (c) in APPENDIX I, PART A (Tangible Assets), III. Machinery and Plant, item (8)(xii) for Mineral oil concerns, specifying a depreciation allowance as a percentage of written down value for oil wells not covered by existing clauses (a) and (b); the change is effected under section 295 read with section 32 of the Income-tax Act by Notification No. 13/2016.