Centre Notifies NOIDA’s Income as Exempt u/s 10(46) of IT Act With Retrospective Effect, Relief Issued in Compliance With Delhi HC Order [Read Order]
The notification was issued in compliance with a Delhi High Court judgment, the notification ensures that NOIDA’s statutory revenues remain tax‑exempt without causing adverse impact to any taxpayer.
![Centre Notifies NOIDA’s Income as Exempt u/s 10(46) of IT Act With Retrospective Effect, Relief Issued in Compliance With Delhi HC Order [Read Order]](https://images.taxscan.in/h-upload/2025/12/19/2113280-centre-notifies-noida-income-exempt-of-it-act-with-retrospective-effect-relief-issued-compliance-with-delhi-hc-order-taxscan.webp "Centre Notifies NOIDA’s Income as Exempt u/s 10(46) of IT Act With Retrospective Effect, Relief Issued in Compliance With Delhi HC Order [Read Order]")
The Central Board of Direct Taxes (CBDT) issued Notification No. 171/2025, granting income tax exemption to the New Okhla Industrial Development Authority (NOIDA) under Section 10(46) of the Income‑tax Act and also granted exemption to its specified income streams for the four past financial years.
The notification, issued on 15 December 2025, brings NOIDA’s income within the ambit of statutory exemption for the assessment years 2012‑13 to 2015‑16, corresponding to financial years 2011‑12 to 2014‑15.
The exemption covers five categories of income:
- Grants received from the Uttar Pradesh Government,
- Money from the disposal of land, buildings, and other movable/immovable properties,
- Rental income from buildings and other properties,
- Interest and dividend earnings, and
- All fees, tolls, and charges collected under the Uttar Pradesh Industrial Area Development Act, 1976.
The notification is subject to three conditions: NOIDA must not engage in commercial activities, its activities and income profile must remain unchanged, and it must file income‑tax returns in accordance with Section 139(4C)(g).
Importantly, the CBDT has clarified through an explanatory memorandum that the retrospective application of the notification will not adversely affect any taxpayer.
The move is explicitly stated to comply with the Delhi High Court’s judgment dated 11 July 2024 in W.P.(C) 4711/2021, which had directed the Union Government to reconsider NOIDA’s exemption claim for the relevant years.
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