The Ministry of Finance has taken a significant step by exempting the Unique Identification Authority of India (UIDAI) from paying income tax for five years, until the fiscal year 2027-28. This exemption covers various forms of income and grants received by UIDAI, ensuring more efficient financial management and allocation of resources towards its primary functions.
Details of the Tax Exemption
The Central Board of Direct Taxes (CBDT), functioning under the Ministry of Finance, issued a notification confirming this exemption. The specific types of income exempted from income tax include:
- Grants and subsidies received from the central government.
- Fees and subscriptions, including those from Right to Information (RTI) requests, tender fees, the sale of scrap materials, and PVC cards.
- Charges for authentication, enrolment, and updating services.
- Earnings from term/fixed deposits and interest accrued from bank deposits.
Applicability and Conditions
The notification specifies that this tax exemption will be applicable for the assessment years 2024-2025 through 2028-2029. It emphasizes that UIDAI must adhere to certain conditions, such as:
- Not engaging in any commercial activities.
- Maintaining the same nature and scope of the specified income throughout the financial years.
About UIDAI
UIDAI is a statutory authority created under the Aadhaar Act of 2016. Its primary role is to ensure compliance with the Aadhaar Act, including the formulation of regulations and rules consistent with the Act.
Conclusion
The exemption of UIDAI from income tax for the next five fiscal years underscores the government’s commitment to facilitating the organization’s mission and operations. This move is expected to support UIDAI in its mandate of providing unique identification numbers to residents of India, thereby enhancing governance and service delivery.
