Central Govt exempts Four Government Entities from Income Tax Purview u/s 10(46)

The Central Government has notified exemption to four statutory bodies from Income Tax under Section 10(46) of the Income Tax Act, 1961. The notifications, issued by the Central Board of Direct Taxes (CBDT), extend relief to entities engaged in public welfare, infrastructure development, education, and professional regulation.

The Lucknow Development Authority (LDA), constituted under the Uttar Pradesh Urban Planning and Development Act, 1973, has been exempted under Section 10(46A). The exemption, effective from Assessment Year (AY) 2024-25, is conditional upon the authority continuing its statutory functions of urban planning and development.

The Commissioners for the Rabindra Setu, Kolkata, established under the Howrah Bridge (Amendment) Act, 1965, have also been brought under the exemption framework. Their notified income includes proceeds from municipal and railway taxes, rentals, maintenance charges, receipts from optical fiber cable laying, way leave rents, recoverable damages, and interest on deposits. The exemption will apply for AYs 2024-25 to 2028-29, corresponding to financial years 2023-24 to 2027-28.

The Maharashtra State Pharmacy Council, constituted by the State Government, has been granted exemption on its income from fees, subscriptions, and interest earnings. The notification applies retrospectively from AY 2019-20 to AY 2023-24, covering financial years 2018-19 to 2022-23. This retrospective effect was certified by CBDT as causing no adverse impact to taxpayers.

The Central Board of Secondary Education (CBSE), Delhi, a premier education board under the Union Government, has also been notified. The exemption covers its receipts from examination fees, affiliation and registration charges, sports and training fees, other academic income, project receipts, and interest from deposits, securities, loans, advances, and tax refunds. This benefit will apply for AYs 2026-27 to 2030-31, relevant to financial years 2025-26 to 2029-30.

In any case, the exemption is subject to conditions. The notified bodies must not engage in commercial activities, must maintain the same nature of income, and must file returns under Section 139(4C) of the Income Tax Act.