CBDT Grants Income Tax Exemption to Rajasthan RERA on Govt. Grants, Loans, Fees, Penalties and Interest [Read Notification]
CBDT has granted the income tax exemptions to the Rajasthan RERA on specified incomes covered under Section 10(46) of the Income Tax Act, 1961.
The Central Board of Direct Taxes ( CBDT ) has granted income tax exemptions to the Rajasthan Real Estate Regulatory Authority (RERA), Jaipur as per specific conditions under the provisions of Section 10(46) of the Income Tax Act, 1961.
The Rajasthan Real Estate Regulatory Authority is a statutory body constituted by the state government under the Real Estate (Regulation and Development) Act, 2016 and is responsible for the regulation of the real estate sector in Rajasthan. The authority also oversees the accountability of developers in real estate projects and also undertakes steps to protect the interests of homebuyers, all while promoting fair practices within the real-estate market.
As per the Notification No. 148 /2025/F. No. 300196/41/2025-ITA-I], specific categories of income received by the Rajasthan RERA shall be exempt. These include amounts received as government grant-in-aid or as loans and advances from the State Government, fees and penalties collected under the provisions of the Real Estate (Regulation and Development) Act, 2016, and any interest earned on such grants, loans, fees and penalties.
However, the exemptions shall be receivable by the Authority subject to conditions. The Rajasthan RERA is required to refrain from engaging in any commercial activity outside the purview of its statutory mandate. Further, the nature of the specified incomes and the activities of the authority must remain unchanged throughout all the applicable financial years.
Additionally, the authority shall file its return of income in accordance with the provisions of Section 139(4C)(g) of the Income Tax Act, 1961.
The Notification, issued on September 22, 2025 has retrospective effect and has been applied for the income received by the Rajasthan Real Estate Regulatory Authority during the Assessment Years 2023-24 to 2025-26, corresponding to Financial Years 2022-23 to 2024-25, and further extends to Assessment Years 2026-27 and 2027-28, relevant to Financial Years 2025-26 and 2026-27.
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