The Central Board of Direct Taxes (CBDT) has notified the Real Estate Regulatory Authority (RERA) eligible for Income Tax Exemption under Section 10(46) of the Income Tax Act, 1961.
The exemption is granted for the specified income arising to the Council namelyAmount received as Grants-in-aid or loan/advance from Government; Fee/penalty received from builders/developers, agents, or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016; and interest earned.
The CBDT has further imposed several conditions on RERA to be eligible for exemptions.
Firstly, the assessee shall not engage in any commercial activity.
Secondly, activities and the nature of the specified income shall remain unchanged throughout the financial years.
Thirdly, 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.
Fourthly, shall file the Audit report along with the Return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.
This notification shall apply to the Real Estate Regulatory Authority with respect to the assessment years 2020-2021, 2021-2022, 2022-2023, 2023-2024, and 2024-2025.
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