Income Tax Exemption for FSSAI under Section 10(46A) CBDT Notifies New Order
The Central Board of Direct Taxes (CBDT) has granted income tax exemption to the Food Safety and Standards Authority of India (FSSAI) under the newly inserted Section 10(46A) of the Income-tax Act, 1961. This development aligns with the government’s broader objective to provide fiscal clarity to statutory authorities.
Let’s break it down for taxpayers, consultants, and small business owners who deal with or rely on FSSAI services.
What is Section 10(46A) of the Income-tax Act?
Section 10(46A) was introduced via the Finance Act, 2021, to provide tax exemption to specified bodies, authorities, boards, commissions, or trusts that are established under Central or State Acts.
Key conditions:
- Entity must be not-for-profit and set up for public welfare
- Must be specified by CBDT through a notification
- Exemption applies only to income specified in the notification
CBDT Notification for FSSAI – Key Highlights
🗓️ Notification No.: 51/2025-Income Tax
📅 Date of Notification: 21st June 2025
📘 Authority: Food Safety and Standards Authority of India (FSSAI)
📍 Exemption Validity: FY 2024–25 to FY 2028–29
Exempted Incomes of FSSAI under this notification:
- License and registration fees collected under FSSAI regulations
- Income from sale of publications and manuals
- Interest earned from government grants or funds
- Fees received for training and capacity building programs
⚠️ Condition:
FSSAI must not engage in commercial activity and must file returns of income regularly to continue enjoying the exemption.
🔗 Read the full notification on incometaxindia.gov.in
How This Impacts Taxpayers and Consultants
- No TDS required on payments to FSSAI for exempted services
- FSSAI income stays out of the tax net, reducing paperwork for government audits
- Consultants advising statutory bodies can use this notification as a model for exemption planning
- Reinforces the government’s trust in public welfare statutory authorities
Expert Insight 💡
“Section 10(46A) is a legal safeguard for autonomous bodies like FSSAI. But remember: only notified incomes are exempt. Any commercial surplus or unrelated income may still attract tax liability.”
— Efiletax Tax Advisory Team
Quick Comparison: Section 10(46) vs 10(46A)
| Feature | Section 10(46) | Section 10(46A) |
|---|---|---|
| Applicable To | Bodies notified before 2021 | Bodies notified post Finance Act 2021 |
| Notification by CBDT | Required | Required |
| Covers | Statutory boards, commissions, etc. | Statutory bodies under any law |
| Commercial Activity Allowed | No | No |
Frequently Asked Questions (FAQs)
Q1: Is GST applicable on FSSAI services despite income tax exemption?
A: Yes. Income tax exemption under Section 10(46A) does not affect GST liability unless separately exempted under GST law.
Q2: Can private companies claim similar exemption under 10(46A)?
A: No. This exemption is available only to statutory bodies notified by CBDT.
Q3: Will FSSAI need to reapply after 2028–29?
A: Yes, unless CBDT issues a fresh notification extending the exemption period.
Summary
CBDT has granted income tax exemption to FSSAI under Section 10(46A) for FY 2024–25 to 2028–29. Exemption applies to fees, training income, and interest from grants, provided FSSAI stays non-commercial and files returns. Consultants must verify exemption scope before advising clients.
Final Thoughts: A Step Towards Better Tax Governance
This notification marks another move towards simplifying compliance for public authorities like FSSAI. If you are a statutory body or consultant managing such entities, understanding Section 10(46A) can help structure your income in a tax-efficient manner.