CBDT Grants Income Tax Exemption to Karnataka Housing Board Under Section 10(46A)



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The Central Board of Direct Taxes (CBDT) has granted income tax exemption to the Karnataka Housing Board (KHB) under Section 10(46A) of the Income-tax Act, effective from the assessment year 2024-25. This exemption allows KHB to operate with more financial flexibility, enabling it to reinvest surpluses into affordable housing and urban development projects across Karnataka. The recognition is contingent on KHB continuing to function as a board constituted under the Karnataka Housing Board Act, 1962, and fulfilling specified public welfare objectives.

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
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FAQ :

The Karnataka Housing Board (KHB) has been granted income tax exemption by the Central Board of Direct Taxes (CBDT) under Section 10(46A) of the Income-tax Act.

The exemption is effective from the assessment year 2024-25 onwards.

KHB must continue to operate as a board constituted under the Karnataka Housing Board Act, 1962, and fulfil one or more of the purposes specified in sub-clause (a) of clause (46A) of Section 10 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, engaged in activities like housing, infrastructure development, or other public welfare objectives.

The exemption will allow KHB to operate with greater financial flexibility, enabling it to reinvest its surpluses into affordable housing initiatives and urban development projects across Karnataka.

Attached File : 671907_25749_notif.pdf



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