Union Budget 2023-24 + FINANCE Bill, 2023

Removal of exemption of news agency under clause (22B) of section 10

Clause (22B) of section 10 of the Act, inter-alia, provides exemption to any income of a notified news agency which is set up in India solely for collection and distribution of news. This is subject to condition that the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members.

2. In accordance with the stated policy of the Government of phasing out of exemptions and deductions under the Act, the exemption available to news agencies under clause (22B) of section 10 of the Act is proposed to be withdrawn from the assessment year 2024-25.

3. In view of the above, it is proposed to insert fourth proviso to clause (22B) of section 10 of the Act so as to provide that nothing contained in clause (22B) of section 10 of the Act shall apply to any income of the news agency, of the previous year relevant to the assessment year beginning on or after the 1st day of April, 2024.

4. This amendment will take effect from 1st April, 2024 and will accordingly apply to assessment year 2024-25 and subsequent assessment years.

[Clause 5]

 

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Full Text:

Union Budget 2023-24 + FINANCE Bill, 2023

Tax exemption for notified news agencies withdrawn, ending clause-based relief and effective from the assessment year starting April 2024. The finance bill withdraws the tax exemption available to notified news agencies under clause (22B) of section 10 by inserting a proviso excluding any income of such agencies for the previous year relevant to the assessment year beginning on or after 1 April 2024; the amendment takes effect from 1 April 2024 and applies to assessment year 2024-25 and subsequent years.