CBDT Notifies Fees Regulating Authority under Section 10(46) of the Income-tax Act, 1961

Last updated: 31 July 2026

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The Central Board of Direct Taxes (CBDT) has issued a notification designating the 'Fees Regulating Authority' as a body eligible for tax exemption under Section 10(46) of the Income-tax Act, 1961. This exemption applies to specific income streams, including processing fees, penalties, government reimbursements, and interest from investments. The notification ensures continuity of proceedings under the repealed Income-tax Act, 1961, as per the new Income-tax Act, 2025. The Fees Regulating Authority must adhere to certain conditions, such as not engaging in commercial activities and filing income tax returns, to maintain its exemption.

MINISTRY OF FINANCE(Department of Revenue)(CENTRAL BOARD OF DIRECT TAXES)NOTIFICATIONNew Delhi, the 27th July, 2026 S.O. 4120(E). Whereas, section 10 (46) of the Income-tax Act, 1961 (43 of 1961) provided for exemption of specified income of certain bodies or authorities or Boards or Trusts or Comm

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FAQ :

The notification designates the Fees Regulating Authority for the purposes of Section 10(46) of the Income-tax Act, 1961, allowing it to receive tax exemptions on specified income.

The 'Fees Regulating Authority (PAN AAAJF0167B)', constituted by the State Government of Maharashtra, has been notified.

Eligible income includes processing fees, interest, penalties, and other charges from Private Professional Educational Institutions; reimbursements/grants from the Government of Maharashtra; and income from interest on bank deposits and other investments.

The authority must not engage in commercial activity, its activities and income nature must remain unchanged, and it must file its income tax return as per Section 139(4C)(g) of the Act of 1961.

This notification is deemed to have been applied for assessment years 2022-23 through 2026-27, relevant to financial years 2021-22 through 2025-26.

Failure to comply with the conditions may lead to penal actions under the Income Tax Act, 1961, and withdrawal of the exemption granted under Section 10(46).