Taxability of Income of News Agency

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Taxability of Income of News Agency

To understand the taxability of News Agency have a look at section 10(22B). Section 10(22B) reads as under:

(22B) any income of such news agency set up in India solely for collection and distribution of news as the Central Government may, by notification in the Official Gazette, specify in this behalf:

Provided 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:

Provided further that any notification issued by the Central Government under this clause shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification:

Provided also that where the news agency has been specified, by notification, by the Central Government and subsequently that Government is satisfied that such news agency has not applied or accumulated or distributed its income in accordance with the provisions contained in the first proviso, it may, at any time after giving a reasonable opportunity of showing cause, rescind the notification and forward a copy of the order rescinding the notification to such agency and to the Assessing Officer;

As per section 10(22B), any income of such news agency set-up in India solely for collection and distribution of the news is totally exempt.

The exemption is available, provided the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income any manner to its member.

The notification issued by the Central Government shall, at any tine time, have effect for such assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification.

After giving the notification if Government is satisfied that such news agency has not applied or accumulated or distributed its income in accordance with the provisions of this section it may rescind the notification any time after giving a reasonable opportunity of showing cause.

The income is exempt, not the return filing!

As per Section 139(4C)(b), the news agency is required to file the return of income if the total income in respect of such news agency without giving effect of exemption exceeds the maximum amount which is not chargeable to income-tax in the previous year.

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