The Union Government has exempted 165 District Mineral Foundation (DMF) Trusts from Income Tax Payment as well as interest incurred by these DMFs.
“The collections under DMF as well as interest accrued will be exempted from IT. A Gazette notification has been issued to this effect,” said Coal and Mines Minister Pralhad Joshi here on Saturday.
He further said that the decision would result in more fund availability with the trust and ensure better implementation and outcome-oriented activities for the welfare of mining affected people.
The DMF is a non-profit statutory trust for every Indian district affected by mining-related operations. It is an initiative of the Central government to ensure that funds collected under DMF should be utilized for welfare of those affected by mining-related operations. So far, DMFs have been set up in 600 districts in 22 States in the country which have framed DMF rules.
Centre has issued Gazette notification on Friday after the Ministry of Mines took up this issue with the Ministry of Finance seeking notification for Income-tax exemption u/s 10(46) of the Income-tax Act, 1961 in respect to the District Mineral Foundations.
With this notification, a total of 316 District Mineral Foundation Trust in have been notified as ‘class of Authority’ in respect of the income arising to DMF on account of contributions by lease holders to DMF as per the MMDR Act, interest on late payment of DMF contributions by miners and such other specified collections, said a senior officer of the Coal Ministry.