CBDT Grants Income-Tax Exemption to NCCL’s Core Settlement Guarantee Fund for AYs 2019–20 to 2026–27...
CBDT granted income-tax exemption to NCCL's Core Settlement Guarantee Fund for assessment years 2019‑20 to 2026‑27.Summary
The Central Board of Direct Taxes (CBDT) issued Notification No. 78/2026 on 7 July 2026 granting income-tax exemption to the Core Settlement Guarantee Fund (CSGF) set up by National Commodity Clearing Limited (NCCL). The exemption, under Section 10(23EE) of the repealed Income-tax Act, 1961, applies retrospectively for Assessment Years 2019‑20 to 2026‑27. To retain the exemption, NCCL must continue to hold SEBI recognition as a clearing corporation and the fund must file its return of income under Section 139(4C) of the 1961 Act; failure to comply will result in withdrawal of the exemption and possible proceedings under the old Act. The CBDT confirmed that granting retrospective effect does not adversely affect any person's interests. NCCL, the clearing and settlement arm of National Commodity & Derivatives Exchange Ltd. (NCDEX), manages the CSGF, which acts as a financial safety net to ensure settlement of commodity trades even if a member defaults.
(Source：Taxscan)