The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 156/2025 [S.O. 5006(E)] granting income tax exemption to the Karnataka Housing Board (KHB) under Section 10(46A) of the Income-tax Act, 1961.
The notification, issued by Meenakshi Singh, Deputy Secretary, states that the Central Government, in exercise of powers conferred by sub-clause (b) of clause (46A) of Section 10, has recognized the Karnataka Housing Board (PAN: AAAJK0398K) as an eligible entity for tax exemption purposes.
Effective From AY 2024-25
The exemption will be applicable from the assessment year 2024-25 onwards, provided that the Karnataka Housing Board continues to operate as a board constituted under the Karnataka Housing Board Act, 1962 (Act No. 10 of 1963) and fulfills one or more purposes specified in sub-clause (a) of clause (46A) of Section 10 of the Income-tax Act.
The Explanatory Memorandum accompanying the notification clarifies that the order is being given retrospective effect and certifies that no person will be adversely affected by this retrospective application.
About Section 10(46A) of the Income Tax Act
Section 10(46A) provides income tax exemption to certain statutory authorities, boards, and bodies constituted under a Central or State Act, which are engaged in activities such as housing, infrastructure development, or other public welfare objectives.
About Karnataka Housing Board (KHB)
Established under the Karnataka Housing Board Act, 1962, KHB is a statutory body responsible for implementing housing schemes and promoting affordable housing across the state. The board undertakes projects for various income groups, including economically weaker sections, lower-income groups, and middle-income categories.
The CBDT's recognition of KHB under Section 10(46A) will allow the board to operate with greater financial flexibility, enabling it to reinvest its surpluses into affordable housing initiatives and urban development projects across Karnataka.
Official copy of the notification has been attached
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