CBDT notifies income tax exemption to Greater Noida Industrial authority
This story was originally published at 16:56 IST on 11 June 2025
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NEW DELHI – The Central Board of Direct Taxes has notified income tax exemption to Greater Noida Industrial Development Authority under some sections of the Income Tax Act, which offer benefits for development authorities. The notification is in line with Finance Minister Nirmala Sitharaman's announcement in the Budget for 2023-24 (Apr-Mar) to extend exemptions to development authorities that are engaged in non-commercial public welfare activities.
The exemption – under Section 10(46A) of the Income Tax Act - has retrospective effect as it will be effective from assessment year 2024-25 (Apr-Mar), or FY24, the apex direct tax body said in a gazette notification Tuesday. "It is proposed to provide exemption to any income arising to a body or authority or board or trust or commission, (not being a company) which has been established or constituted by or under a Central or State Act with the purposes of satisfying the need for housing or for planning, development or improvement of cities, towns and villages or for regulating any activity or matter, irrespective of whether it is carrying out commercial activity," the Finance Bill, 2023, read.
Greater Noida Industrial Development Authority is a statutory authority under the U.P. Industrial Area Development Act, 1976. Exemptions under Section 10(46A) of the Income Tax Act are applicable for only authorities with non-commercial, public service functions with mandatory approval from the finance ministry.
According to the Act, Greater Noida Industrial Development Authority's income flows from monetary grants and subsidies received from the state government, receipts from land or building allotments, fees or charges collected for approvals, services, or licenses and interest income on such funds, including fixed deposits and savings will be exempt from tax under Section 10(46A).
In case exempted income is mixed with commercial income, the finance ministry can take away partial or full tax benefit granted to developmemnt authorities. End
Reported by Priyasmita Dutta
Edited by Vandana Hingorani
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