CBDT Notification: Tax Exemption for Asset Transfer Between NLCIL and NIRL
The Central Board of Direct Taxes (CBDT), via Notification No. 122/2024 dated November 27, 2024, has officially notified the tax exemption under Section 47(viiaf) of the Income-tax Act, 1961, for the transfer of capital assets from NLC India Limited (NLCIL) to NLC India Renewables Ltd (NIRL).
Key Details
Entities Involved:
Transferor: NLC India Limited (NLCIL) (PAN: AAACN1121C)
Transferee: NLC India Renewables Ltd (NIRL) (PAN: AAICN9440Q)
Approval:
The transfer plan was approved by the Central Government on August 1, 2024.
Tax Exemption:
The transfer is exempt from tax under Section 47(viiaf), which provides tax relief for asset transfers between public sector entities under a government-approved scheme.
Effective Date:
The notification is effective from the date of its publication in the Official Gazette.
Significance
This exemption facilitates smoother operational and strategic restructuring within the public sector, specifically promoting renewable energy initiatives through the establishment of NLC India Renewables Ltd (NIRL). It aligns with the government’s focus on supporting renewable energy ventures while ensuring compliance with tax provisions.
Conclusion
The notification underscores the government’s commitment to fostering renewable energy growth while enabling efficient restructuring within public sector enterprises. By offering tax exemptions for such asset transfers, the government continues to promote sustainability and operational efficiency.
