CBDT Grants Retrospective Tax Exemption to Haryana RERA, Gurugram Under Section 10(46)

The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 57/2025 dated June 16, 2025, granting tax exemption to the Haryana Real Estate Regulatory Authority (HRERA), Gurugram under clause (46) of section 10 of the Income-tax Act, 1961. The exemption has been given retrospective effect for five financial years, covering FY 2018-19 to FY 2022-23.

Categories of Tax-Exempt Income

As per the notification [S.O. 2687(E)], the following income sources received by HRERA Gurugram are exempt from income tax:

• Grant-in-aid, loans, or advances received from the Government
• Fees and penalties received from real estate builders, developers, agents, or stakeholders under provisions of the Real Estate (Regulation and Development) Act, 2016
• Interest income earned on the above amounts

HRERA Gurugram was constituted under Section 20(1) of the Real Estate (Regulation and Development) Act, 2016 by the State Government of Haryana, and serves as a key regulatory authority in ensuring transparency and fairness in the real estate sector.

Conditions for Exemption

The tax exemption is subject to specific compliance conditions, including:

• The Authority must not engage in any commercial activity
• The nature of activities and specified income must remain unchanged throughout the financial years
• HRERA must file its return of income under clause (g) of sub-section (4C) of Section 139 of the Income-tax Act

Retrospective Application with No Adverse Impact

The notification confirms that the exemption shall be deemed applicable from FY 2018-19 to FY 2022-23 (Assessment Years 2019-20 to 2023-24). An Explanatory Memorandum appended to the notification clarifies that no person is adversely affected by this retrospective application.

This move reflects the government's continued efforts to bring regulatory bodies and statutory authorities under a consistent tax regime, while ensuring transparency and legal clarity on their income tax obligations.

Official copy of the notification has also been attached