CBDT Notifies Tax Exemption for Yamuna Expressway Industrial Development Authority u/s 10(46A) [Read Order]

The notification, issued via S.O. 2726(E) under sub-clause (b) of clause (46A) of Section 10, grants YEIDA an income tax exemption beginning Assessment Year 2024-25, subject to specified conditions. YEIDA, is a statutory authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (Act No. 6 of 1976).

Under the Income-tax Act, Section 10(46A) provides income-tax exemption to notified statutory authorities, bodies, or boards that are established under a state or central Act for carrying out functions such as urban development, infrastructure planning, and industrial area development.

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As per the notification, YEIDA must continue to remain an authority constituted under the said UP Act and engage in one or more activities listed in sub-clause (a) of Section 10(46A), which typically include the development, regulation, and promotion of industrial areas.

YEIDA is essential to the National Capital Region's (NCR) infrastructure development, especially in the Gautam Budh Nagar district. The Yamuna Expressway region, which includes the future Jewar International Airport, industrial corridors, logistics parks, and residential areas, is planned and developed by the authority.

The notification clarifies that the exemption shall remain in force only if the authority:

• Continues to function under the UP Industrial Area Development Act, 1976, and
• Carries out activities falling within the defined scope of public infrastructure or industrial area development under Section 10(46A)(a).