CBDT Notifies Kerala Real Estate Regulatory Authority for Income Tax Exemption under Schedule III of the Income-tax Act, 2025

Last updated: 31 July 2026

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The Central Board of Direct Taxes (CBDT) has notified the Kerala Real Estate Regulatory Authority (RERA) for income tax exemption. This exemption applies to specific income sources like project/agent registration fees, compensation/complaint filing fees, and government grants. The notification is effective for the tax year 2026-27, provided RERA adheres to certain conditions.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th July, 2026

S.O. 4191(E).— In exercise of the powers conferred by Schedule III [Table: Sl. No. 36] read with section 11 of the Income-tax Act, 2025 (30 of 2025), (hereinafter referred to as the said Act), the Central Government hereby notifies for the purposes of the said clause, “Kerala Real Estate Regulatory Authority” (PAN: AAAGK1025N), an Authority constituted by Government of Kerala under sub-section (1) of Section 20 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), in respect of the following specified income arising to the said authority namely:-

(a) fees collected for registration of projects / agents / plot.
(b) fees for filing compensation and complaint; and
(c) government grants.

2. This notification shall be effective subject to the conditions that ‘Kerala Real Estate Regulatory Authority’ (PAN:
AAAGK1025N),-

(a) shall not engage in any commercial activity;
(b) shall file return of income in accordance with the provision of clause (c)(xiii) of sub-section (9) of section
263 of the said Act; and.
(c) activities and the nature of the specified income shall remain unchanged throughout the tax years.

3. Failure to comply with the conditions specified in paragraph 2 shall result in withdrawal of exemption under Schedule III [Table: Sl. No. 36] read with section 11 and initiation of proceedings under the said Act.

4. This notification shall be applicable for the tax year 2026-27.

[Notification No. 102/2026/F. No. 300196/88/2024-ITA-I]
HARDEV SINGH, Under Secy

FAQ :

The notification grants income tax exemption to the Kerala Real Estate Regulatory Authority under Schedule III of the Income-tax Act, 2025.

The exemption covers fees collected for the registration of projects and agents, fees for filing compensation and complaints, and government grants.

Kerala RERA must not engage in any commercial activity, must file its income tax return as per the Act, and its activities and income nature must remain unchanged throughout the tax years.

This notification is effective for the tax year 2026-27.

Failure to comply with the specified conditions will result in the withdrawal of the exemption and initiation of proceedings under the Income-tax Act.