Limitation on taxation of royalties and technical fees under the India Belgium treaty: capped source taxation and narrowed royalty definition.
The Central Government amended Article 12 of the India-Belgium tax agreement to allow source taxation of royalties and fees for technical services while limiting the tax charged where the beneficial owner resides in the other Contracting State by imposing a fixed ceiling, effective in each State from the respective specified dates. It also replaced the definition of "royalties" to include payments for use of or rights to copyrights (including cinematograph films), patents, trademarks, designs, models, plants, secret formulas or processes, and information on industrial, commercial or scientific experience.

Tax-free non-convertible bonds confirmed, conditional on holder registration with the issuer and stated interest terms.
The Central Government designates specified non-convertible, unsecured and redeemable bonds issued by Power Corporation Limited during the 1999-2000 financial year as tax-free under item (h) of sub-clause (iv) of clause (15) of section 10, identifying the series by distinctive number ranges and interest/payment terms; the exemption is subject to the condition that holders register their name and holding with the issuing Corporation.

Tax-free bonds under Section 10(15)(iv)(h): specified non-convertible unsecured redeemable bonds exempt if holder registers holdings with issuer.
Specification under the Income-tax Act designating certain Power Corporation Limited bonds as tax-free non-convertible, unsecured and redeemable instruments carrying yearly interest for a ten-year period; the exemption applies only where the holder registers their name and holding with the issuer.

Charitable exemption under section 10(23C)(vi) granted to an educational society subject to specified operational and compliance conditions.
Notification under section 10(23C)(vi) notifies Liberty Educational Society, Mumbai for specified assessment years subject to conditions: apply income wholly to its objects; restrict investments to forms permitted by the statutory investment regime (excluding certain voluntary-contribution goods); exclude non-incidental business income unless separate books are maintained; regularly file income-tax returns; and on dissolution transfer surplus and assets to a charitable organisation with similar objectives.

Tax exemption under section 10(23C)(vi) granted to Mother India Educational Society, subject to specified compliance conditions.
Notification under section 10(23C)(vi) notifies Mother India Educational Society as eligible for the clause for assessment years 1999-2000 to 2001-2002, conditional on exclusive application of income to its objects, investment and deposit compliance with section 11(5) (with limited exception for in kind voluntary contributions), cessation of non complying investments after 31 3 2001, exclusion of business income unless incidental and separately accounted, regular filing of income tax returns, and transfer of surplus assets on dissolution to a similar charitable organisation.

Exemption under section 10(23C)(vi) subject to charitable application, permitted investment modes, and compliance obligations.
Notification grants tax-exempt status under section 10(23C)(vi) to South Point School for the specified assessment years, conditional on application of income exclusively to its objectives; restricting investments to modes specified in section 11(5) (with limited exceptions for voluntary contributions held as jewellery or furniture); excluding business income unless incidental with separate accounts; regular filing of returns; transfer of surplus on dissolution to a like charitable organisation; and conversion of investments into permitted modes by the undertaking date.

Charitable exemption recognition confirms institutional tax exemption for notified society subject to operational and recordkeeping conditions.
Central Government notifies Saint Lawrence Education Society, Mumbai, for charitable tax exemption for the specified assessment years subject to conditions: income must be applied or accumulated wholly and exclusively to its objects; investments limited to statutory forms (except voluntary contributions retained as jewellery or furniture); business income excluded unless incidental and kept in separate books; regular filing of income-tax returns; and on dissolution surplus and assets to be transferred to a similar charitable organisation.

Charitable notification under section 10(23C)(vi) grants tax recognition subject to application, investment and reporting conditions.
Notification recognises Mother India Educational Society, Mumbai under section 10(23C)(vi) for assessment years 1999-2000 to 2001-2002, subject to conditions: income must be applied or accumulated solely for its objects; investments and deposits limited to forms permitted by section 11(5) (except specified voluntary contributions); business profits excluded unless incidental with separate accounts; regular filing of returns required; on dissolution surplus and assets must go to a similar charitable organisation; nonconforming deposits and investments must be discontinued after 31 March 2001.

Exemption notification grants tax-exempt status to an educational institution subject to investment, accounting and dissolution conditions.
Notification grants tax-exempt recognition to South Point School under section 10(23C)(vi) for specified assessment years, conditional on applying or accumulating income exclusively for its objects, restricting investments to modes in section 11(5) (with limited exceptions), converting investments into specified modes by the stated deadline, maintaining separate accounts for incidental business income, regularly filing income-tax returns, and on dissolution transferring surplus and assets to a charitable organisation with similar objectives.

Tax exemption under section 10(23G) granted to specified infrastructure enterprises, subject to books, audit and reporting compliance.
Approval is granted to specified enterprises for tax exemption under section 10(23G), read with rule 2E, subject to conformity with those provisions and to conditions requiring maintenance of books of account, audit and furnishing of the audit report; the Central Government may withdraw approval if an enterprise ceases the infrastructure activity or fails to comply with the accounting or audit requirements.

Tax exemption approval for infrastructure project under conditions of compliance and audited accounts; withdrawal possible on noncompliance.
Approval is granted to the 165 MW Ernakulam power project of BSES Kerala Power Ltd. as an approved enterprise under section 10(23G) read with rule 2E for the assessment years 2001-2002 to 2003-2004, subject to compliance with section 10(23G) and rule 2E. The approval requires maintenance of books of account, auditing and furnishing of the audit report as per sub-rule (7) of rule 2E; the Central Government may withdraw approval if the undertaking ceases the infrastructure activity or fails to maintain audited accounts or to furnish the required audit report.

Tax exemption recognition under section 10(23C)(vi) granted subject to exclusive charitable application, investment limits, and compliance.
Recognition grants the foundation tax exemption for assessment years 1999-2000 to 2001-2002 provided it applies or accumulates income exclusively for its objects, confines investments and deposits to authorised forms (with voluntary contributions in jewellery or furniture excepted), treats business income as incidental only if separate books are kept, files returns regularly, and on dissolution transfers surplus and assets to a like charitable organisation.

Tax exemption approval for power project subject to compliance, audited books and withdrawal on cessation or audit noncompliance.
Approval under section 10(23G) read with rule 2E is granted to the 165 MW Ernakulam power project by M/s BSES Kerala Power Ltd. The approval is conditional on compliance with section 10(23G) and rule 2E, including maintenance of books, audit by an accountant and furnishing the audit report under sub-rule (7) of rule 2E; the Central Government may withdraw approval if the undertaking ceases to carry on the infrastructure facility or fails to maintain audited accounts or furnish the required audit report.

Approval under section 10(23G) grants tax-exempt status to listed infrastructure undertakings, conditional on compliance and audits.
Approval confers tax-exempt status on specified infrastructure enterprises for assessment years 2001-2002 to 2003-2004, subject to compliance with the Income-tax statutory provisions and rule 2E procedural requirements. The Central Government may withdraw approval if an undertaking ceases infrastructure operations, fails to maintain books of account and secure an accountant's audit, or fails to furnish the required audit report. The notification lists three approved projects: Lodhana hydroelectric (3 MW), a cellular mobile service in Chennai, and Larji and Ghanvi hydroelectric projects.

Tax exemption under section 10(23C)(iv): institute notified subject to application, investment, business and dissolution conditions.
Notification grants conditional tax-exempt status to the National Institute of Bank Management, Mumbai under section 10(23C)(iv), requiring that its income be applied or accumulated exclusively for its objects, invested only in modes specified by section 11(5) (excluding certain tangible voluntary contributions), and that business income be excluded unless incidental and separately accounted. It also requires regular filing of returns and transfer of surplus assets to a like charitable organization on dissolution.

Tax exemption under income tax rules: eligibility extended for a rural eye care and public health charitable programme.
The Central Government re-specifies the Gift of Vision, Phase II Rural Outreach Eye Care Programme carried out by Sri Kanchi Kamakoti Medical Trust as an eligible project or scheme under the Income tax framework for a further three year period commencing from the stated assessment year, following the National Committee's recommendation under the Income tax Rules. The specification lists project components including rural eye care, prevention of communicable diseases, maternal and child care, hospital additions and construction of quarters, and records an estimated project cost.

Exemption under section 35AC extended for Sankar Foundation hospital project, prolonging eligibility for further assessment years.
The Central Government, exercising powers under the Explanation to section 35AC, specifies that Sankar Foundation's purchase of equipment and operation of hospital projects at Visakhapatnam is an eligible project for a further two assessment years commencing from assessment year 2002-2003, extending the earlier three-year designation beginning with assessment year 1999-2000, following the National Committee's recommendation under rule 11M that the project is being properly executed.

Exemption for charitable hospital project extended; eligibility renewed for additional assessment years by central government after committee recommendation.
The Central Government, acting under the Explanation to the Income tax Act and following a recommendation by the National Committee, specifies the Karuna Setu Trust's scheme of running a hospital, purchasing equipment and providing welfare activities at Vadnagar, Mehsana District, Gujarat, as an eligible project for tax exemption for a further three assessment years commencing from assessment year 2002-2003, at the estimated project cost including a corpus fund.

Tax exemption notification requires charitable foundation to apply income exclusively and meet specified investment and compliance conditions.
Notification designates the Padmashri Dr. Vithalrao Vikhe Patil Foundation as notified under sub-clause (vi) of clause (23C) of section 10 for specified assessment years, conditioned on applying or accumulating income wholly and exclusively to its objects, restricting investments to permitted modes, treating business income as incidental only if separate books are maintained, filing returns regularly, and transferring surplus assets on dissolution to a charitable organisation with similar objects.

Exemption under section 35AC extended for specified special education centre; project cost revised upward by notification.
Section 35AC exemption for the Shishu Sarothi Spastics Society's Guwahati centre for special education is extended for a further three years from the assessment year 1999 2000 following a National Committee recommendation that execution is proper and the project will extend beyond six years; the notification concurrently amends the earlier specification by increasing the notified project cost.