CBDT Grants Income Tax Exemption to Chennai Metropolitan Water Supply Board and Rajasthan State Seed [Read Notifcation]
CBDT granted income tax exemptions to the Chennai Metropolitan Water Supply and Sewerage Board and the Rajasthan State Seed and Organic Certification Agency effective from AY 2024-25.
Chennai-metropolitan-water-Taxscan
Chennai-metropolitan-water-Taxscan
The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), issued two separate notifications Notification No. 151/2025 and Notification No. 152/2025, both dated October 15, 2025 granting income tax exemptions to two government bodies, the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and the Rajasthan State Seed and Organic Certification Agency (RSSOCA). These notifications were published in the Gazette of India (Extraordinary) and will apply from the Assessment Year 2024–2025.
The CBDT exercised its powers under Section 10(46A) of the Income-tax Act, 1961, which allows the Central Government to notify certain statutory authorities, boards, or bodies for exemption from income tax on their income derived from government-mandated public functions.
The exemption is subject to the condition that the organization continues to operate under the specific Act under which it was established and continues to perform the functions mentioned in the law.
Want a deeper insight into the Income Tax Bill, 2025? Click here
The Chennai Metropolitan Water Supply and Sewerage Board was constituted under the Chennai Metropolitan Water Supply and Sewerage Act, 1978 enacted by the Government of Tamil Nadu. The Board is responsible for planning, developing, operating, and maintaining the water supply and sewerage system within the Chennai Metropolitan Area.
It provides clean drinking water and ensures proper sanitation and wastewater management for millions of residents. The income of the Board generated through such statutory activities will now be exempt from income tax, enabling it to reinvest its revenue in improving infrastructure and service delivery.
The Rajasthan State Seed and Organic Certification Agency functions under the Seeds Act, 1966, a Central legislation. The agency is responsible for certifying seeds and promoting organic farming practices in Rajasthan.
It ensures that farmers receive high-quality and certified seeds, which helps improve crop yield and maintain agricultural standards. By granting income tax exemption, the government recognizes its role in supporting sustainable agriculture and ensuring seed quality for farmers across the state.
According to the notifications, both exemptions are effective from the assessment year 2024-2025, and it has been clarified that no person will be adversely affected by giving retrospective effect to these notifications.
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
