Summary
CBDT has notified income tax exemption for Greater Noida Industrial Development Authority under Section 10(46A)(b) of the Income-tax Act. This aligns with government policy to exempt notified statutory bodies from income tax on specified incomes.
CBDT Notifies Income Tax Exemption for Greater Noida Authority
In a significant update for professionals and taxpayers dealing with public authorities, the CBDT has notified the Greater Noida Industrial Development Authority (GNIDA) as exempt from income tax under Section 10(46A)(b) of the Income-tax Act, 1961.
This move is part of the government’s effort to provide clarity and tax neutrality to statutory authorities performing public functions.
What is Section 10(46A) of the Income-tax Act?
Section 10(46A), inserted by the Finance Act, 2021, provides income tax exemption to certain statutory bodies or authorities established by Central or State laws.
Conditions for Exemption:
To qualify for exemption under this section, the following must be met:
- The entity is a body or authority established under a law.
- It is not engaged in commercial activities.
- It performs functions of public service or development.
Income Exempted for Greater Noida Authority
As per the latest CBDT notification:
The following income streams of Greater Noida Industrial Development Authority are exempt under Section 10(46A)(b):
- Monetary grants and subsidies received from the State Government
- Receipts from land or building allotments
- Fees or charges collected for approvals, services, or licenses
- Interest income on such funds, including fixed deposits and savings
📄 Source: CBDT Notification No. 43/2025 dated 07.06.2025 (F. No. 300196/35/2024-ITA-I)
Official link: incometaxindia.gov.in
Legal Reference: Why It Matters
- The exemption follows principles laid down by Supreme Court in ‘UP Industrial Development Authority v. CIT’, confirming that development authorities are eligible for such benefits if engaged in non-commercial public welfare activities.
Expert View: Compliance Tip
✅ “Entities like GNIDA must maintain separate books of accounts for exempt income and file ITR accordingly under the correct status, else the exemption could be withdrawn,”
– CA Manish Agarwal, Noida-based Tax Consultant
Key Compliance Takeaways
| Point | Details |
|---|---|
| Authority Name | Greater Noida Industrial Development Authority |
| Exemption Section | Section 10(46A)(b) of the Income-tax Act, 1961 |
| Eligible Income | Grants, fees, land allotment receipts, interest income |
| Period Covered | AY 2024–25 to AY 2026–27 |
| Notification Date | 7th June 2025 |
| Notification No. | 43/2025 |
| Filing Status | Exempt entity (must follow notification conditions) |
FAQs
Is Greater Noida Authority a government body?
Yes, it is a statutory authority under the UP Industrial Area Development Act, 1976.
Can any income-generating authority apply for 10(46A) exemption?
No. Only authorities with non-commercial, public service functions are eligible. CBDT approval is mandatory.
What happens if exempt income is mixed with commercial income?
Such mixing may lead to partial or full denial of exemption, unless properly disclosed and accounted.
Final Thoughts
This notification reinforces the government’s intent to streamline tax treatment for development authorities. For professionals and consultants, it’s a reminder to verify such exemptions before assessing the taxability of statutory bodies.