CBDT notifies Income Tax Exemption u/s 10(46) for Certain Incomes of Pune Metropolitan Region Development Authority [Read Notification]

The Central Board of Direct Taxes (CBDT) has extended the income tax exemption under Section 10(46) of the Income Tax Act, 1961 to ‘Pune Metropolitan Region Development  Authority’, an Authority constituted by the State Government of Maharashtra.

Pune Metropolitan Region Development Authority (PMRDA) is responsible for planning and developing the Pune Metropolitan Region, which covers an area of 7,256.46 km² and has a population of 7.276 million, making it the second-largest urban unit in Maharashtra. Established in 2015, PMRDA has been entrusted with the task of promoting sustainable growth and development of the region.

Categories of Income Exempted from Tax:

(a) grants received from the State Government, the Union Government or any other authority or agency.

(b) income such as fees, user charges or fines received in the capacity of Local Town Planning Authority.

(c) income such as land lease – rental received from monetization of Government Lands;

(d) stamp duty grant;

(e) other miscellaneous income such as penalty charges, sale of tender forms, RTI fees, registration charges from contractors, penalty levied on contractors for defective work; and

(f) interest earned on (a) to (e) above.

Conditions for Exemption:

Pune Metropolitan Region Development Authority –

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file a return of income in accordance with the provision of clause (g) of sub-section (4C) of Section 139 of the Income Tax Act, 1961.

Retrospective Application of Notification:

The Notification shall be deemed to have been applied for the financial years 2017-2018, 2018-2019, 2019-2020, 2020-2021 and 2021-2022.

Tax exemption is available to certain public organizations in India under Section 10(46) of the Income Tax Act. This provision applies to notified bodies, authorities, boards, trusts, and commissions established by the Central, State, or Provincial Government for regulating or administering public activities, and not engaged in commercial activities. Such authorities must also be notified in the Gazette by the Central Government in order to claim exemption.

To Read the full text of the Notification CLICK HERE

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Notification No: 25/2023 , 10th May, 2023