CBDT Grants Income Tax Exemption to Karnataka Housing Board [Read Notification]
CBDT has granted income tax exemption to the Karnataka Housing Board effective from the Assessment Year 2024-25
![CBDT Grants Income Tax Exemption to Karnataka Housing Board [Read Notification]](https://images.taxscan.in/h-upload/2025/11/05/2102581-karnataka-housing-board.webp "CBDT Grants Income Tax Exemption to Karnataka Housing Board [Read Notification]")
The Ministry of Finance, Department of Revenue (Central Board of Direct Taxes - CBDT) issued Notification No. 156/2025 [S.O. 5006(E)] dated November 4, 2025, granting income tax exemption to the Karnataka Housing Board (KHB). The exemption has been provided under Section 10(46A) of the Income Tax Act, 1961, and will be effective from the Assessment Year 2024-25.
The notification was published in the Gazette of India (Extraordinary), Part II, Section 3(ii) and was signed by Meenakshi Singh, Deputy Secretary to the Government of India.
According to the notification, the Central Government has recognized the Karnataka Housing Board as a board constituted under the Karnataka Housing Board Act, 1962 (Act No. 10 of 1963).
This recognition allows the Board to enjoy certain tax exemptions on its income, provided it continues to serve the objectives laid out in the Act. The Board is engaged in developing and providing affordable housing in the state of Karnataka, which is considered a public welfare activity.
The exemption under Section 10(46A) is usually given to statutory authorities or bodies that perform functions of public importance and are not set up for profit-making purposes. By extending this benefit, the government aims to support the activities of such institutions that contribute to housing development and urban infrastructure.
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The notification further clarifies that the exemption will continue as long as the Board remains constituted under the Karnataka Housing Board Act and continues to pursue the purposes specified in the Income Tax Act.
An explanatory memorandum attached to the notification states that granting this exemption retrospectively will not adversely affect any individual or entity. This ensures that the decision is purely in the public interest and aims to strengthen the financial position of the Karnataka Housing Board.
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