Income Tax Exemption for DCI & YEIDA Latest CBDT Notification
The Income Tax Exemption for DCI & YEIDA is now official. The CBDT, via Notifications No. 41 & 42/2025 dated 29th April 2025, has granted tax exemptions under the newly inserted Section 10(46A) to:
- Dental Council of India (DCI)
- Yamuna Expressway Industrial Development Authority (YEIDA)
Let’s decode what this means for stakeholders.
What is Section 10(46A)?
Section 10(46A), introduced in Budget 2024, provides income tax exemption to specified statutory bodies performing public functions.
Key conditions:
- Entity must be notified by CBDT.
- Exemption applies only to income earned for public purposes as specified.
- Profit-making activities are not covered.
This section strengthens the older Section 10(46) regime with clearer conditions.
Entities Now Exempted: DCI & YEIDA
🏥 Dental Council of India (DCI)
Role: Apex body for regulating dental education and profession in India.
Exempt Incomes:
- Fees collected for registration
- Income from inspections and affiliation
- Grants and donations received for statutory functions
🏗️ Yamuna Expressway Industrial Development Authority (YEIDA)
Role: Develops infrastructure, industrial clusters, and townships along the Yamuna Expressway in Uttar Pradesh.
Exempt Incomes:
- Charges for land allotment
- Development fees
- Interest earned on statutory funds
- Other notified receipts linked to planned development
(Source: CBDT Notifications 41 & 42/2025)
How Does This Benefit These Bodies?
✅ Reduced tax burden means more funds for public projects.
✅ Legal clarity for auditors and finance departments.
✅ Boosts transparency, as misuse of funds could risk exemption withdrawal.
Expert View: Practical Tip for Compliance
Entities notified under Section 10(46A) must file a return and maintain separate books for exempt income. Failure may lead to scrutiny or cancellation of exemption status.
Tip: Always check the specific notification for conditions to avoid tax disputes.
Related Case Law Insight
Courts have upheld that statutory bodies performing sovereign functions should not be taxed on funds meant for public welfare. For example: Gujarat Industrial Development Corporation v. CIT reinforced this principle under Section 10(46).
Quick Comparison: 10(46) vs 10(46A)
| Aspect | Section 10(46) | Section 10(46A) |
|---|---|---|
| Introduced | Earlier | Budget 2024 |
| Applies to | Specified bodies | Wider list, incl. new authorities |
| Nature of activities | Non-commercial only | Non-commercial only |
| Notification required | Yes | Yes |
| Revocation | On misuse | On misuse |
FAQs
Q1. Is YEIDA’s land sale income fully tax-free?
Only if it relates to statutory functions and as per CBDT notification. Profit-driven ventures remain taxable.
Q2. Do these bodies need to file ITR?
Yes. Filing is mandatory even for exempt entities to maintain compliance.
Q3. Where to find official notifications?
Visit incometaxindia.gov.in for the latest orders.
Summary
CBDT grants income tax exemption under Section 10(46A) to the Dental Council of India and Yamuna Expressway Industrial Development Authority, easing tax burden for statutory public welfare functions.
Conclusion
The Income Tax Exemption for DCI & YEIDA under Section 10(46A) is a welcome move for better fund utilization and smoother governance.