The Central Board of Direct Taxes (“CBDT”) vide Notification No. 09/2023 dated March 01, 2023 has notified Income Tax exemption to the Insolvency and Bankruptcy Board of India (“the IBBI”) under section 10(46) of the Income-tax Act, 1961 (“the IT Act”). The exemption shall be available in respect of Grants-in-aid, fees & fines collected under the Insolvency and Bankruptcy Code, 2016 (“the IBC”) and interest income accrues on them.
The Complete Notification can be accessed at: https://incometaxindia.gov.in/communications/notification/notification-9-2023.pdf