The Central Government, in exercise of powers conferred under the Income-tax Act, 1961, has issued a series of notifications granting income-tax exemptions to certain statutory authorities and bodies under clauses (46) and (46A) of section 10 of the Act. The details of the notifications are as follows:
[1] Notification No. 25/2026 – S.O. 1532(E)
The Central Government has notified Urban Improvement Trust, Sikar under clause (46A) of section 10 of the Income-tax Act, 1961. The Trust, constituted under the Rajasthan Urban Improvement Act, 1959, has been granted exemption with effect from the Assessment Year 2026–27, subject to the condition that it continues to operate for specified statutory purposes under the Act.
[2] Notification No. 26/2026 – S.O. 1533(E)
Shree Ayodhya Jee Teerth Vikas Parishad, constituted under the Uttar Pradesh Shree Ayodhya Jee Teerth Vikas Parishad Act, 2023, has been notified under clause (46A) of section 10. The exemption shall be applicable from the Assessment Year 2025–26, subject to the condition that the body continues to carry out its notified statutory functions.
[3] Notification No. 27/2026 – S.O. 1534(E)
The Central Government has notified CJM-cum-District Legal Services Authority, Fatehabad under clause (46) of section 10 of the Income-tax Act, 1961. The exemption applies to specified income including grants from Central and State authorities, court-directed receipts, recruitment fees, and interest income.
The notification is subject to conditions such as non-engagement in commercial activities and filing of income tax returns as prescribed. The exemption is applicable retrospectively for Assessment Years 2023–24 to 2025–26 and will continue for Assessment Years 2026–27 and 2027–28.
[4] Notification No. 28/2026 – S.O. 1535(E)
District Legal Services Authority, Karnal has also been notified under clause (46) of section 10. The exemption covers specified income such as grants from legal services authorities, government grants, court receipts, recruitment fees, and interest on deposits.
The notification is subject to conditions including prohibition on commercial activities and compliance with return filing requirements. The exemption shall apply retrospectively for Assessment Years 2023–24 to 2025–26 and prospectively for Assessment Years 2026–27 and 2027–28.
Key Highlights
- All notifications are dated 24th March, 2026.
- Exemptions are granted under Section 10(46) and Section 10(46A) of the Income-tax Act, 1961.
- Retrospective benefit has been provided in certain cases from the year of application, ensuring no adverse impact on stakeholders.
- The exemptions are conditional upon continued adherence to statutory functions and non-commercial activities.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/CBDT-Notifications-Nos.-25-to-28-2026-dated-24th-March-2026.pdf
