CBDT Notifies Income Tax Exemption for AICTE, HPCB, and WB Municipal Debt Fund Trust u/s 10(46) [Read Notification]
All the three public entities were granted income tax exemptions conditionally.
![CBDT Notifies Income Tax Exemption for AICTE, HPCB, and WB Municipal Debt Fund Trust u/s 10(46) [Read Notification]](https://images.taxscan.in/h-upload/2025/08/03/2072600-cbdt-income-tax-exemption-aicte-hpcb-wb-debt-fund-trust-taxscan.webp "CBDT Notifies Income Tax Exemption for AICTE, HPCB, and WB Municipal Debt Fund Trust u/s 10(46) [Read Notification]")
The Central Board of Direct Taxes ( CBDT ) has notified income tax exemptions for the All India Council for Technical Education ([Notification No. 128 /2025), the Haryana State Pollution Control Board (HSPCB), and the West Bengal Municipal Development Fund Trust (WB MDFT) under Section 10(46) of the Income-tax Act, 1961. All India Council for Technical Education [AICTE] As...
The Central Board of Direct Taxes ( CBDT ) has notified income tax exemptions for the All India Council for Technical Education ([Notification No. 128 /2025), the Haryana State Pollution Control Board (HSPCB), and the West Bengal Municipal Development Fund Trust (WB MDFT) under Section 10(46) of the Income-tax Act, 1961.
All India Council for Technical Education [AICTE]
As per Notification No. 128/2025 dated 1st August 2025, AICTE, a council established by the Central Government, has been granted exemption on the following specified incomes:
- Grants/subsidies from Government bodies
- Regulatory charges
- RTI and examination fees
- CMAT and GPAT fees
- Interest from bank deposits
- Miscellaneous charges and receipts
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The exemption is applicable for the assessment years 2024-25 to 2028-29 and is subject to conditions including non-involvement in commercial activity, consistency in income type, and timely filing of returns under Section 139(4C)(g).
Haryana State Pollution Control Board
The CBDT, through Notification No. 127/2025, also granted exemption to the Haryana State Pollution Control Board, constituted under the Water (Prevention and Control of Pollution) Act, 1974. The Board’s exempt incomes include:
- Government grants
- Consent fees under Water and Air Acts
- Laboratory analysis and survey fees
- Authorization and NOC fees
- RTI fees
- Interest on staff loans and deposits
- Public hearing, recognition, and miscellaneous charges (including scrap sales and forfeitures)
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This exemption is applicable retrospectively from FY 2024-25 and will continue through FY 2028-29, subject to standard conditions like non-engagement in commercial activity and consistent income structure.
West Bengal Municipal Development Fund Trust
The Notification No. 129/2025 further exempts the West Bengal Municipal Development Fund Trust, constituted by the Government of West Bengal. The exempt income includes:
- Interest from bank deposits
- Interest on term loans to Urban Local Bodies
- Upfront processing fees
The exemption applies retrospectively from FY 2021–22 and continues up to FY 2025–26. The trust is also bound by the standard compliance conditions laid down under Section 10(46), including non-commercial operations and proper filing of tax returns.
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