Notification under section 10 sub section 46 of Income tax Act 1961 in case of Chhatisgarh, Uttarakhand, Madhya Pradesh, Punjab Real Estate Regulatory Authority.

Last updated: 02 September 2023

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The Central Board of Direct Taxes has issued a notification under the Income Tax Act, 1961, granting an exemption from income tax to Real Estate Regulatory Authorities in Chhattisgarh, Uttarakhand, Madhya Pradesh, and Punjab. This exemption applies to specific income sources including government grants, loans, fees/penalties from stakeholders, and interest earned on these amounts. The notification is effective from the financial year 2022-2023.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st September, 2023

S.O. 3865(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 Authorities’ 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;
(c) Interest earned on (a) & (b) above.

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; and
(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.

3. This notification shall be deemed to be applied with respect to the financial year 2022-2023 relevant to assessment year 2023-2024.

Schedule

S.No. (1)	Name of the Real Estate Regulatory Authority (2)	PAN (3)
1	Chhatisgarh Real Estate Regulatory Authority	AAAJC1049H
2	Uttarakhand Real Estate Regulatory Authority	AAALU0695H
3	Madhya Pradesh Real Estate Regulatory Authority	AAAGM0458B
4	Real Estate Regulatory Authority, Punjab	AAAJR1281N

[Notification No. 76 /2023, F.No.300196/19/2022-ITA-I]
VIKAS SINGH, Director, (ITA-I)

FAQ :

The notification covers the Real Estate Regulatory Authorities of Chhattisgarh, Uttarakhand, Madhya Pradesh, and Punjab.

Eligible income includes amounts received as grants-in-aid or loans/advances from the Government, fees/penalties from builders, developers, agents, or other stakeholders, and any interest earned on these amounts.

The authorities must not engage in any commercial activity, their activities and income nature must remain unchanged, and they must file their income tax returns as per the Income-tax Act.

This notification is deemed to be effective from the financial year 2022-2023, relevant to assessment year 2023-2024.