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FinMin exempts 165 District Mineral Foundation trusts from paying income tax

FinMin exempts 165 District Mineral Foundation trusts from paying income tax

Coal and Mines Minister Pralhad Joshi took to Twitter to thank PM Modi and Finance Minister Nirmala Sitharaman for exempting 165 additional DMFs from income tax.

DMF is a trust set up as a non-profit body in districts affected by mining-related operations to work for the interest and benefit of persons and areas affected by such operations. DMF is a trust set up as a non-profit body in districts affected by mining-related operations to work for the interest and benefit of persons and areas affected by such operations.

The Finance Ministry has exempted an additional 165 District Mineral Foundation (DMF) trusts from paying income tax, taking the total number of DMF trusts with such exemption to 316.

DMF is a trust set up as a non-profit body in districts affected by mining-related operations to work for the interest and benefit of persons and areas affected by such operations. It is funded through the contributions from the holder of major or minor mineral concession in the district as may be prescribed by the Central or state government.

Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act in 2015, the government had made provisions for establishment of DMF in all the districts affected by mining.

"Ministry of Finance has taken measures to get the DMF trust exempted from Income Tax. Section 10(46) of the Act was amended by Finance Act 2018 so that all the DMF trusts could be notified as 'Class of Authority'," the Mines Ministry said in a release.

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Accordingly, the Department of Revenue notified 151 DMF trusts in September last year and 165 DMF trusts on September 10, 2021 as 'Class of Authority' in respect of the income arising to DMF, it said.

With this, a total of 316 DMF trusts have been notified as 'Class of Authority' in respect of the income arising to DMF.

The Mines Ministry said it had taken up with Finance Ministry the issue of issuance of notification for I-T exemption for DMFs. Coal and Mines Minister Pralhad Joshi took to Twitter to thank Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for exempting 165 additional DMFs from income tax.

Joshi said the decision will result in availability of more funds for DMF Trusts, ensuring better implementation and outcome-oriented activities for welfare of people affected by mining.

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