The Central Government, in exercise of the powers conferred under sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961, has issued three separate notifications all dated 19 January 2026, granting income-tax exemption to specified statutory authorities constituted under State laws. These notifications have been issued by the Central Board of Direct Taxes (CBDT) and published in the Gazette of India (Extraordinary).
- Notification in respect of Aligarh Development Authority
Vide Notification No. 8/2026 [S.O. 260(E)], the Central Government has notified the Aligarh Development Authority (PAN: AAALA0082G) for the purposes of section 10(46A) of the Income-tax Act, 1961.
The Authority is constituted under the Uttar Pradesh Urban Planning and Development Act, 1973 (President’s Act No. 11 of 1973).
The notification shall be effective from Assessment Year 2025-26, subject to the condition that the Authority continues to be constituted under the said Act and carries out one or more of the specified purposes mentioned in section 10(46A)(a) of the Income-tax Act.
- Notification in respect of Barnala Improvement Trust
Vide Notification No. 9/2026 [S.O. 261(E)], the Central Government has notified the Barnala Improvement Trust (PAN: AABTB1345E) under section 10(46A) of the Income-tax Act, 1961.
The Trust is a local authority constituted under the Punjab Town Improvement Act, 1922 (Punjab Act No. 4 of 1922).
This notification shall be effective from Assessment Year 2024-25, subject to the condition that the Trust continues to function as a local authority under the said Act and performs one or more of the specified purposes under section 10(46A)(a).
- Notification in respect of Agra Development Authority
Vide Notification No. 10/2026 [S.O. 262(E)], the Central Government has notified the Agra Development Authority (PAN: AAALA0081F) for the purposes of section 10(46A) of the Income-tax Act, 1961.
The Authority is constituted under the Uttar Pradesh Urban Planning and Development Act, 1973 (President’s Act No. 11 of 1973).
The notification shall be effective from Assessment Year 2024-25, subject to the condition that the Authority continues to be constituted under the said Act and carries out one or more specified purposes under section 10(46A)(a).
Explanatory Memorandum
In all three notifications, it has been certified that no person shall be adversely affected by the grant of retrospective effect, i.e., from the year in which the application was made before the Board/Department.
These notifications are aimed at providing certainty and clarity regarding tax treatment of statutory authorities engaged in public infrastructure development and urban planning functions.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/CBDT-NN-08-to-10-of-2026.pdf
