The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has granted income tax exemption to the Food Safety and Standards Authority of India (FSSAI) under Section 10(46A)(b) of the Income-tax Act, 1961.
The official notification, dated June 24, 2025 (S.O. 2829(E)), states that FSSAI, constituted under the Food Safety and Standards Act, 2006, has been notified as an eligible entity for exemption for the purpose of Section 10(46A). The notification recognizes FSSAI (PAN: AAAGF0023K) as an authority performing functions of public importance and eligible for tax exemption from the assessment year 2026-27 onwards.
However, this exemption is subject to a key condition - that FSSAI must continue to operate as an authority under the Food Safety and Standards Act, 2006, and must serve one or more of the objectives mentioned under sub-clause (a) of clause (46A) of Section 10 of the Act. These typically include objectives such as regulating or administering activities for the benefit of the public.
What Does This Mean?
This tax exemption will allow FSSAI to retain its earnings without being subject to income tax, enabling it to utilize more of its resources towards improving food safety, setting regulatory standards, and promoting public health across India.
Background
FSSAI is the apex body responsible for ensuring food safety and hygiene in India. It formulates science-based standards and regulates the manufacture, storage, distribution, sale, and import of food products.
With this notification, the government continues its policy of supporting regulatory and developmental authorities that serve broader public interest, particularly in critical sectors like health and safety.
Official copy of the notification is as follows
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