Rajasthan Housing Board gets income tax exemption under Section 10(46A)
CBDT has notified income tax exemption to Rajasthan Housing Board under the newly inserted Section 10(46A) of the Income-tax Act, 1961. This exemption applies from Assessment Year (AY) 2024–25 onwards, subject to specific conditions.
Let’s break it down for Indian taxpayers, professionals, and consultants.
What is Section 10(46A) of the Income Tax Act?
- Inserted via Finance Act, 2023, Section 10(46A) allows tax exemption to certain bodies or authorities constituted under laws for housing, planning, or development.
- The exemption is granted through notification by CBDT in the Official Gazette.
🔗 Read Section 10(46A) on Income Tax Portal
CBDT Notification: What It Says
As per CBDT Notification No. 50/2025 dated 4 July 2025, Rajasthan Housing Board has been granted exemption under Section 10(46A). Here’s what’s covered:
Exempt Incomes Include:
- Amounts received from:
- State government grants
- Allotment/sale of houses/flats
- Rent or lease of residential/commercial units
- Interest income from deposits or advances
Conditions Apply:
- Must file return of income under Section 139(4C).
- Should not engage in commercial activity.
- Separate books of accounts for specified exempt income.
- Income should be used only for public purposes as per the governing Act.
Why This Matters: Legal & Compliance Insights
- The notification aligns with the policy goal of supporting affordable housing and urban development.
- The exemption is not automatic — it’s specific to the notified entity and based on fulfilment of conditions.
- Any violation of conditions may lead to withdrawal of exemption, making the income taxable.
🔖 Legal Source: Notification under clause (46A) of section 10, read with Rule 2RB of the Income-tax Rules, 1962.
Expert Tip: Use Section 10(46A) Strategically
If you’re advising or auditing public sector bodies, identify whether they are eligible for this exemption. Many housing boards, industrial development authorities, and infrastructure bodies can benefit — but only if they apply and maintain books correctly.
Summary
CBDT grants tax exemption under Section 10(46A) to Rajasthan Housing Board for AY 2024–25 onwards. Exempt incomes include rent, grants, and interest. Subject to filing and compliance conditions.
FAQs
Q1: Is this exemption available to private housing societies?
No. Section 10(46A) applies only to government-established and owned authorities notified by CBDT.
Q2: Can Rajasthan Housing Board earn commercial income now?
No. Commercial activities will violate the exemption conditions and lead to taxability.
Q3: Will the exemption apply retrospectively?
No. It applies prospectively from AY 2024–25 as per the notification.
Final Words
Rajasthan Housing Board’s exemption under Section 10(46A) is a reminder that compliance and purpose matter in claiming tax benefits. Boards working for public housing should maintain transparency, file returns on time, and track exempt incomes separately.
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