The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued two separate notifications granting income tax exemptions under Section 10 of the Income-tax Act, 1961 to the Haryana Building and Other Construction Workers Welfare Board and the Ayodhya Vikas Pradhikaran (Ayodhya Development Authority).
Tax Exemption for Haryana Building and Other Construction Workers Welfare Board
As per Notification No. 158/2025 [S.O. 5060(E)], the Central Government has notified the Haryana Building and Other Construction Workers Welfare Board, Panchkula (PAN: AAATH6995H), as eligible for income exemption under clause (46) of Section 10 of the Act.
The exemption applies to specific income sources, including:
- Registration fees and annual subscriptions from registered construction workers,
- Proceeds from cess collected under the Building and Other Construction Workers Welfare Cess Act, 1996, and
- Interest earned on bank deposits.
The notification is effective for FY 2025-26 to FY 2029-30 (AYs 2026-27 to 2030-31), subject to conditions that the Board:
- Does not engage in any commercial activities,
- Maintains the same nature of income and functions throughout the period, and
- Files its income tax returns as prescribed under Section 139(4C)(g) of the Act.
The Ministry also clarified that no person is adversely affected by the retrospective application of this notification.
Ayodhya Vikas Pradhikaran Recognized Under Section 10(46A)
In a separate Notification No. 159/2025 [S.O. 5061(E)], the CBDT has notified the Ayodhya Vikas Pradhikaran (Ayodhya Development Authority) [PAN: AAALA0206C] as an eligible authority under sub-clause (b) of clause (46A) of Section 10 of the Income-tax Act.
The Ayodhya Development Authority, constituted under the Uttar Pradesh Urban Planning and Development Act, 1973, will enjoy tax exemption effective from Assessment Year 2024-25, provided it continues to function for urban planning and development purposes as specified under the said clause.
The CBDT, in its explanatory memorandum, reaffirmed that the retrospective effect of the notification will not adversely impact any individual or entity.
Background
Section 10(46) and Section 10(46A) of the Income-tax Act empower the Central Government to exempt income of certain statutory bodies, authorities, and boards engaged in public welfare, infrastructure development, and regulatory functions from income tax, provided they meet the prescribed conditions.
Conclusion
These latest notifications reaffirm the government's commitment to supporting welfare and development authorities that operate for public good. While the Haryana Board focuses on improving the welfare of construction workers, the Ayodhya Development Authority plays a key role in planned urban development in the historic city of Ayodhya.
Official copy of the notifications have been attached
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