Greater Ludhiana Area Development Authority Receives Tax Exemption from CBDT [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has granted income tax exemption to the Greater Ludhiana Area Development Authority ( GLADA ) under Section 10(46A)(b) of the Income-tax Act, 1961.

The exemption was officially notified via Gazette Notification No. 120/2025, dated 22nd July 2025, and is effective from the assessment year 2024-2025 onwards.

As a proper body established under the Punjab Regional and Town Planning and Development Act, 1995, GLADA is mentioned in the notification. Due to its statutory role in town planning and public infrastructure development, GLADA is currently one of the few regional development organizations in India to be awarded special tax-exempt status.

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According to the CBDT notification, the exemption is contingent on GLADA continuing to function strictly under the purposes defined in sub-clause (a) of Section 10(46A). These include core objectives such as town planning, development of housing and infrastructure, and provision of civic amenities within its jurisdiction.

The exemption will cease to apply if GLADA deviates from its legislated mandate or undertakes activities outside the scope of the Punjab Act of 1995, said the board through the notification.

The CBDT has further clarified through an explanatory memorandum that no adverse impact will result from granting the exemption retrospective effect from FY 2023-24 (AY 2024-25).