Notification No. 49/2020 [F.No.300196/43/2019-ITA-I] / SO 2380(E)

Last updated: 21 July 2020

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This notification from the Ministry of Finance grants income tax exemption to Real Estate Regulatory Authorities. It specifies that grants-in-aid, loans, advances, fees/penalties from stakeholders, and interest earned on these are eligible for exemption. However, these authorities must adhere to strict conditions, including not engaging in commercial activities and filing income tax returns and audit reports.

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 17th July, 2020 S.O. 2380(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 th

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FAQ :

The purpose of this notification is to notify 'Real Estate Regulatory Authority' as a 'class of Authority' for the purposes of clause (46) of section 10 of the Income-tax Act, 1961, allowing for certain income exemptions.

Eligible income includes amounts received as Grants-in-aid or loan/advance from Government, fee/penalty received from builders/developers, agents or any other stakeholders, and interest earned on these amounts.

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

They are constituted under sub-section (1) of section 20 of the Real Estate (Regulation and Development) Act, 2016.

The notification specifies that it shall be effective subject to the stated conditions and applies to specific Real Estate Regulatory Authorities for the assessment years mentioned in the notification.