CBDT notifies income tax exemption to Noida authority
This story was originally published at 21:29 IST on 17 July 2025
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NEW DELHI – The Central Board of Direct Taxes has notified the income tax exemption to New Okhla Industrial Development Authority, or Noida, under the Income Tax Act, which offers 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), the apex direct tax body said in a gazette notification Thursday. Exemptions under Section 10(46A) of the Income Tax Act apply only to authorities with non-commercial, public service functions with mandatory approval from the finance ministry.
"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.
Under Section 10(46A), the government has already given exemption to the Yamuna Expressway Industrial Development Authority, Greater Noida Industrial Development Authority, Karnataka Electricity Regulatory Commission, Haryana Real Estate Regulatory Authority, Dental Council of India, Himachal Pradesh Board of School Education, Treasurer of Charitable Endowments, Puducherry Planning Authority, and Rajasthan Housing Board.
In case exempted income is mixed with commercial income, the finance ministry can take away the partial or full tax benefit granted to development authorities. End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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