CBDT notifies Income Tax Exemption to Kanpur Development Authority [Read Notification]
Exempting such statutory bodies ensures that funds generated by them are redeployed into infrastructure growth, affordable housing, and sustainable urbanization.
![CBDT notifies Income Tax Exemption to Kanpur Development Authority [Read Notification]](https://images.taxscan.in/h-upload/2025/08/22/2079658-cbdt-income-tax-exemption-kanpur-development-authority-taxscan.webp "CBDT notifies Income Tax Exemption to Kanpur Development Authority [Read Notification]")
The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, notified an income tax exemption to the Kanpur Development Authority (KDA) by invoking provisions of Section 10(46A) ofthe Income Tax Act, 1961.
The notification, issued on August 21, 2025, by the Department of Revenue, provides relief to the authority with retrospective effect from the Assessment Year 2024-25.
The Kanpur Development Authority, which was constituted under the Uttar Pradesh Urban Planning and Development Act, 1973, qualifies as a statutory body eligible for exemption.
The notification signed by Deputy Secretary Meenakshi Singh, states that the Central Government has exercised its powers under sub-clause (b) of clause (46A) of section 10 of the Income Tax Act to extend this benefit.
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Conditions of Exemption
The exemption, however, is conditional. It will apply only as long as KDA continues to operate as an authority formed under the U.P. Urban Planning and Development Act, 1973 with one or more of the specific objectives laid down in sub-clause (a) of section 10(46A). This includes activities related to urban planning, infrastructure creation, housing projects, and development of civic amenities, which are considered essential public functions.
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Notably, the notification has been given retrospective effect from AY 2024-25. The government clarified through its explanatory memorandum that the retrospective application of this exemption will not cause any adverse impact on any individual or taxpayer. This provides KDA significant relief as it will not be required to pay income tax on its earnings generated through statutory activities falling within the ambit of the notified purposes.
The government supports urban development authorities, which operate on a public utility model rather than a profit-making objective through such taxation exemption measures.
Kanpur Development Authority plays a critical role in shaping the urban landscape of Kanpur, one of Uttar Pradesh’s major industrial and commercial hubs. With this exemption, KDA is expected to channel more resources into housing schemes, road projects, green belts, and city planning initiatives without the burden of direct tax obligations.
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