FinMin exempts 165 District Mineral Foundation trusts from income tax
The Department of Finance exempted 165 other District Mineral Foundation (DMF) trusts from paying income tax, bringing the total number of DMF trusts with such exemption to 316.
DMF is a trust established as a non-profit organization in districts affected by mining-related operations to work for the benefit and benefit of the people and areas affected by such operations. It is financed by contributions from the holder of a major or minor mining concession in the district, as prescribed by the central or state government.
Through the Amendment to the Mines and Minerals (Development and Regulation) Act (MMDR) in 2015, the government had made arrangements for the establishment of DMFs in all districts affected by mining.
“The Ministry of Finance has taken steps to make the DMF trust exempt from income tax. Article 10 (46) of the law has been amended by the 2018 finance law so that all DMF trusts can be notified as an “authority class”, “said Mines. the ministry said in a statement.
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As a result, the Department of Revenue notified 151 DMF trusts in September of last year and 165 DMF trusts on September 10, 2021 as a “class of authority” with respect to income from DMF, he said. he declares.
With this, a total of 316 DMF Trusts have been notified as “Class of Authority” with respect to income from DMF.
The Ministry of Mines said it had discussed with the Ministry of Finance the issue of issuing an IT exemption notification for DMFs. Coal and Mines Minister Pralhad Joshi took to Twitter to thank Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for exempting an additional DMF 165 from income tax.
Joshi said the decision would result in the availability of more funds for DMF trusts, ensuring better implementation and results-oriented activities for the well-being of those affected by mining.
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