Question : Tax Benefits to Safai Karamcharies

Will the Minister of Finance be pleased to state:-
a) the basic criteria of applicant to get Income Tax benefit from Gujarat Safai Karamchari Vikas Nigam (GSKVN);
b) whether any other corporation is working for Safai Karamchari in India as
a State Channelizing Agency (SCA) of National Safai Karamchari Finance Development Corporation (NSKFDC) which pays income tax and if so, the details thereof;
c) whether NSKFDC is exempted under section 10(26B) of the IT Act, if so, the details thereof and the reasons for not giving the same facility to GSKVN; and
d) the reaction of the Government in this matter?

(a): Income-tax benefit can be availed by a person or an entity only under the provisions of Income-tax Act 1961.GSKVN by itself is not entitled to grant any Income-tax benefit.

(b): At present, National Safai Karamchari Finance Development Corporation (NSKFDC) is implementing its schemes through 27 active SCAs. The details regarding payment of Income-tax by these 27 SCAs is not maintained in a centralized manner.

(c) & (d): NSKFDC is claiming exemption u/s 10(26B) of the Income-tax Act 1961. As per Department‘s view, GSKVN is not entitled for exemption u/s 10(26B) of the Act because the said exemption is available only when a body/institution/ association is established for promoting the interests of the members of Scheduled Castes or The Scheduled Tribes or backward classes whereas GSKVN has been established for promoting the interests of the Safai Kamdars. GSKVN is, however, registered u/s 12AA of the Act and is enjoying exemption u/s 11 of the Act.


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