CBDT Grants Income Tax Exemption to Moradabad Development Authority under Section 10(46A) [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has notified income tax exemption for the Moradabad Development Authority ( MDA ) under Section 10(46A)(b) of the Income-tax Act, 1961, effective from the assessment year 2024-25.

The 22 July 2025 notification officially recognizes MDA as a statutory body that is exempt from taxes due to its non-commercial and developmental functions.

The Moradabad Development Authority, established under the Uttar Pradesh Urban Planning and Development Act, 1973 , plays a pivotal role in regional urban development and town planning within its jurisdiction.

The notification confirms that MDA qualifies as an “assessee” under Section 10(46A) and shall be exempt from income tax on its eligible receipts, provided it continues to operate strictly under the legislative framework of the 1973 Act.

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The exemption is granted subject to the condition that the Authority remains engaged in non-commercial statutory functions, aligned with the purposes listed in sub-clause (a) of Section 10(46A) of the Income-tax Act.

These purposes typically include planning, regulation, and development of urban infrastructure, civic amenities, and residential or commercial layouts that serve public interest without the primary motive of profit.

Through an accompanying explanatory memorandum, the government has clarified that the retrospective application of this notification will not have any adverse impact on any taxpayer. This provision allows the MDA to avail exemption for the relevant financial year 2023-24.

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