Notification No. 37/2020 [F.No. 300196/50/2019-ITA-I] / SO 2041(E)

Last updated: 28 June 2020

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This notification from the Ministry of Finance designates the 'Real Estate Regulatory Authority' as a specified class of authority for income tax purposes under Section 10(46) of the Income-tax Act, 1961. This applies to specific income streams such as government grants, loans, advances, fees, and penalties received from stakeholders, as well as interest earned on these amounts. The exemption is subject to several conditions, including no commercial activity, consistent nature of income, and mandatory filing of income tax returns and audit reports.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

NOTIFICATION

New Delhi, the 25th June, 2020

S.O. 2041 (E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Real Estate Regulatory Authority’ as specified in the schedule to this notification, constituted by Government in exercise of powers conferred under sub-section (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) as a ‘class of Authority’ in respect of the following specified income arising to that Authority, namely:—

(a) Amount received as Grant-in-aid or loan/advance from Government;

(b) Fee/penalty received from builders/developers, agents or any other stakeholders as per the provisions of the Real Estate (Regulation and Development) Act, 2016;

2. This notification shall be effective subject to the conditions that each of the Real Estate Regulatory Authority –

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years;

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of Section 139 of the Income-tax Act, 1961; and

(d) shall file the audit report along with return, duly verified by the accountant as provided in explanation to section 288(2) of the Income-tax Act, 1961 along with a certificate from the chartered accountant that the above conditions are satisfied.

3. This notification shall apply to the Real Estate Regulatory Authority, mentioned at column (2) below, with respect to the assessment years mentioned in column (4) below

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FAQ :

The notification designates the 'Real Estate Regulatory Authority' as a specified class of authority for the purposes of clause (46) of section 10 of the Income-tax Act, 1961, allowing for certain income exemptions.

The notification covers amounts received as Grant-in-aid or loan/advance from the Government, fees/penalties received from builders/developers, agents or other stakeholders, and interest earned on these amounts.

The conditions include not engaging in any commercial activity, maintaining the unchanged nature of activities and income, filing income tax returns as per Section 139(4C)(g), and filing an audit report with a chartered accountant's certificate confirming compliance.

The Real Estate Regulatory Authority was constituted under sub-section (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016.

This notification is effective subject to the conditions outlined within it.