CBDT Grants S.10(46A) Income Tax Exemption to Punjab Urban Planning and Development Authority
The exemption will be retrospective applicable, effectively from the Assessment Year 2024-25.
The Central Board of Direct Taxes (CBDT), under the Ministry of Finance through a Gazette Notification issued on December 15, 2025, has granted income tax exemption to the Punjab Urban Planning and Development Authority (PUDA) under Section 10(46A) of the Income tax Act, 1961, effective from the Assessment Year (A.Y.) 2024-25.
Background
The notification has been issued in exercise of the powers conferred by sub-clause (b) of clause (46A) of Section 10 of the Income Tax Act, 1961. PUDA, bearing PAN AAALP0045J, is an authority constituted under the Punjab Regional and Town Planning and Development Act, 1995. The Central Government has notified PUDA as an eligible authority for the purposes of claiming exemption under the said provision.
Section 10(46A) provides income tax exemption to statutory bodies, authorities, boards, or trusts established under a Central or State Act, provided they are constituted for specific public purposes and satisfy the conditions prescribed under the Act.
Scope and Conditions of Exemption
As per the notification, the exemption shall apply from A.Y. 2024-25 onwards, subject to the condition that PUDA continues to function as an authority constituted under the Punjab Regional and Town Planning and Development Act, 1995. Additionally, the authority must continue to carry out one or more of the purposes specified under sub-clause (a) of clause (46A) of Section 10 of the Income-tax Act.
Explanatory Memorandum
The Explanatory Memorandum accompanying the notification clarifies that granting retrospective effect to the notification does not adversely affect any person.
The Central Government’s continued recognition of statutory authorities performing public functions as eligible for tax exemptions under the Income-tax Act, subject to compliance with prescribed conditions is visible in this notification.
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