As part of the move to gradually phase out exemptions and deductions, Clause 5 of the Finance Bill 2023 proposes to withdraw the income tax exemption u/s 10(22B) for notified ‘News Agencies’.
1. Section 10(22B) of the Income Tax Act exempts any income earned by a notified news agency established in India solely for the collection and distribution of ‘news’. This exemption is subject to the condition that the news agency uses or accumulates its income solely for the collection and distribution of news and does not distribute any of its income to its members.
2. In accordance with the Government’s stated policy of phasing out exemptions and deductions under the Income Tax Act, the exemption available to news agencies under Section 10(22B) of the Income Tax Act is proposed to be withdrawn beginning with the assessment year 2024-25.
3. In light of the foregoing, Finance Bill 2023 proposes to add a fourth proviso to clause (22B) of Section 10 of the Income Tax Act, stating that nothing in clause (22B) of Section 10 of the Act shall apply to any income of the news agency derived in the previous year relevant to the assessment year beginning on or after April 1, 2024.
4. This amendment will go into effect on April 1, 2024, and will apply to assessment years 2024-25 and onwards.
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