UIDAI Granted Five-Year Income Tax Exemption by Finance Ministry

UIDAI Granted Five-Year Income Tax Exemption by Finance Ministry

The Ministry of Finance has announced a five-year exemption from income tax for the Unique Identification Authority of India (UIDAI). This exemption applies to various sources of income, including government grants and service fees.

Key Details

  • Exemption Duration: The exemption covers the fiscal years 2023-24 to 2027-28.
  • Covered Income Sources: The exemption includes income from central government grants, various service fees, and interest on deposits.
  • Conditions: UIDAI must not engage in commercial activities, and the nature of its income sources must remain unchanged.

Official Notification

The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, issued a notification detailing the exemption.

About UIDAI

UIDAI is a statutory authority established under the Aadhaar Act, 2016. Its mandate is to ensure compliance with the Aadhaar Act and establish consistent regulations.


Multiple-Choice Questions (MCQs):

  1. What is the duration of the income tax exemption for UIDAI?
    a) Three years
    b) Four years
    c) Five years
    d) Six years
    Answer: c) Five years
  2. Which of the following is not a condition for UIDAI’s income tax exemption?
    a) UIDAI must not engage in commercial activity
    b) Income sources can change during the exemption period
    c) UIDAI’s nature of specified income must remain unchanged
    d) UIDAI is a statutory authority under the Aadhaar Act
    Answer: b) Income sources can change during the exemption period
  3. Who issued the notification for UIDAI’s income tax exemption?
    a) Ministry of Finance
    b) Central Board of Direct Taxes (CBDT)
    c) Reserve Bank of India (RBI)
    d) Securities and Exchange Board of India (SEBI)
    Answer: b) Central Board of Direct Taxes (CBDT)