CBDT Grants Income Tax Exemption to Baddi Barotiwala Nalagarh Development Authority [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has granted income tax exemption to the Baddi Barotiwala Nalagarh Development Authority, an authority constituted by the Himachal Pradesh State Government.

The exemption has been notified under clause (46) of Section 10 of the Income-taxAct, 1961, covering the following categories of income:

• Grants received from the Central and Himachal Pradesh State Governments,
• Revenue receipts under the Himachal Pradesh Town and Planning Act, 1977, and
• Interest earned on bank deposits.

This exemption is subject to strict conditions: the Authority must not engage in any commercial activities, its activities and income streams must remain unchanged during the relevant years, and it must file income tax returns under the applicable provisions of the Act.

The notification has retrospective effect. It applies for assessment years 2014-2015 to 2018-2019, covering financial years from 2013-2014 to 2017–2018. The government has clarified that this retrospective relief does not adversely impact any other taxpayer.

The notification, issued by the Ministry of Finance (Department of Revenue), was signed by Deputy Secretary Ms. Meenakshi Singh.

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