CBDT Grants Income Tax Exemption for Commissioners of Rabindra Setu, Kolkata u/s 10(46) [Read Notification]

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance issued Notification No. 4/2025, dated January 3, 2025, granting a tax exemption to “The Commissioners for the Rabindra Setu, Kolkata.”

This notification enacted under clause (46) of section 10 of the Income Tax Act, 1961, exempts specific categories of income earned by the body responsible for the management and upkeep of the iconic Howrah Bridge.

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The specified exempt incomes include proceeds from municipal and railway taxes, rental and maintenance charges, earnings from laying optical fiber cables, way-leave rents, recoverable damage costs, and interest accrued on bank deposits.

The exemption is applicable retrospectively covering assessment years 2019-2020 to 2023-2024, which correspond to financial years 2018-2019 to 2022-2023.

For the exemption to remain valid, the Commissioners for Rabindra Setu must adhere to specific conditions:

1. They must not engage in any commercial activities.
2. The nature of their activities and incomes must remain unchanged during the specified period.
3. They are required to file income returns under section 139(4C)(g) of the Income Tax Act.

The accompanying explanatory memorandum assures that the retrospective effect of the notification does not impose any adverse impact on taxpayers.

The Rabindra Setu Commissioners is an official organization created by the Howrah Bridge (Amendment) Act of 1965, passed by the Government of West Bengal. It is responsible for managing, maintaining, and overseeing the operations of the Rabindra Setu, also known as the Howrah Bridge. This bridge is one of India’s most famous landmarks and an important link between Kolkata and Howrah.

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Background

The Howrah Bridge, renamed Rabindra Setu in 1965 to honor Nobel Prize winner Rabindranath Tagore, is a cantilever bridge built over the Hooghly River. Completed in 1943, it is an important part of West Bengal’s transport system, serving millions of daily commuters and supporting the movement of goods and people across the region.

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