CBDT Notifies Noida Special Economic Zone Authority for Income Tax Exemption under Schedule III of the Income-tax Act, 2025

Last updated: 05 August 2026

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The Central Board of Direct Taxes (CBDT) has issued a notification granting income tax exemption to the Noida Special Economic Zone Authority. This exemption applies to specific income sources such as lease rent, bank interest, and various fees. The notification is effective for tax years 2026-27 and 2027-28, subject to the authority not engaging in commercial activities and maintaining its current operational nature.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 4th August, 2026.

S.O. 4320(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, ‘Noida Special Economic Zone Authority’(PAN: AAALN0639A), an Authority constituted by the Government of India, in respect of the following specified income arising to that authority, namely,:-

(a) Lease rent;
(b) Interest from banks on FDRS;
(c) Receipts from I Card and permit Fee;
(d) Allotment fee in respect of standard design factories;
(e) Auction/Bid amount in respect of plots/Buildings which fall vacant;
(f) Transfer charges in respect of plot/building;
(g) Fee for issue of Form-I for exemption of building plans;
(h) Processing fee for approval of building plans;
(i) Site usage charges from service providers; and
(j) From the sale of miscellaneous scrap/waste.

2. This notification shall be effective subject to the conditions that ‘Noida Special Economic Zone Authority –

(a) shall not engage in any commercial activity;
(b) shall file return of income in accordance with the provision of section 263(9)(c)(xiii) of the said Act, 2025; 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 tax years 2026-27 and 2027-28.

[Notification No. 108 /2026 /F. No. 300196/65/2018-ITA-I]
HARDEV SINGH, Under Sec

FAQ :

The notification officially recognises the Noida Special Economic Zone Authority for income tax exemption under Schedule III of the Income-tax Act, 2025.

The exemption covers income from lease rent, bank interest on FDRs, I Card and permit fees, allotment fees for factories, auction amounts for vacant plots/buildings, transfer charges, fees for building plan exemptions and approvals, site usage charges, and sale of miscellaneous scrap/waste.

The authority must not engage in any commercial activity, must file its income tax return as per Section 263(9)(c)(xiii) of the Act, and its activities and income sources must remain unchanged throughout the tax years.

This notification is applicable for the tax years 2026-27 and 2027-28.

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