The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 16/2025 on February 12, 2025, granting tax exemption to the Real Estate Regulatory Authority (RERA), Punjab under Section 10(46A) of the Income-tax Act, 1961.
As per the notification, RERA Punjab (PAN: AAAJR1281N) has been recognized as an exempt entity for the assessment year 2024-25 onwards, provided it continues to function as an authority under The Real Estate (Regulation and Development) Act, 2016 with the specified purposes outlined in sub-clause (a) of Section 10(46A) of the Income-tax Act.
Significance of the Notification
- Tax Relief for RERA Punjab: The exemption ensures that the authority's income remains tax-free, allowing it to focus on its regulatory functions without financial constraints.
- Boost to Real Estate Regulation: Strengthens Punjab's real estate governance by enabling RERA to operate efficiently in protecting homebuyers and ensuring project transparency.
- Conditional Exemption: The benefit will continue as long as RERA Punjab meets the conditions prescribed under the Income-tax Act.
This move reinforces the government's commitment to strengthening real estate regulation and consumer protection while providing financial autonomy to regulatory bodies.
Official copy of the notification is as follows
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 12th February, 2025
S.O. 731(E).- In exercise of the powers conferred by sub-clause (b) of clause (46A) of section 10 of the Income-tax
Act, 1961 (43 of 1961), (hereinafter referred to as "the Income-tax Act"), the Central Government hereby notifies the Real Estate Regulatory Authority, Punjab (PAN: AAAJR1281N) (hereinafter referred to as “the assessee”), an authority constituted under The Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016), for the purposes of the said clause.
2. This notification shall be effective from the assessment year 2024-25, subject to the condition that the assessee
continues to be an authority constituted under The Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016) with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.
[Notification No. 16/2025/F. No. 300195/31/2024-ITA-I]
ASHWANI KUMAR, Under Secy.
CAclubindia
