Section 10(30) of the Income Tax Act provides a tax exemption for subsidies received by tea growers and manufacturers in India under specific government-notified schemes.
Who Qualifies:
- Any assessee engaged in the business of growing and manufacturing tea in India.
What’s Exempt:
- Subsidies received from or through the Tea Board for:
- Replantation or replacement of tea bushes,
- Rejuvenation or consolidation of tea cultivation areas,
- Provided the scheme is notified by the Central Government in the Official Gazette.
Conditions:
- The assessee must furnish a certificate from the Tea Board specifying the amount of subsidy received.
- This certificate must be submitted along with the return of income or within a time allowed by the Assessing Officer.
Example:
Suppose Darjeeling Estates Ltd. receives ₹2 crore from the Tea Board under a government-notified replantation scheme. If they submit the required certificate with their return, the entire ₹2 crore is exempt under Section 10(30)
