The Central Government, in exercise of its powers under the Income-tax Act, 1961, has issued a series of notifications all dated March 25, 202 granting income-tax exemption to certain statutory authorities engaged in urban development and economic activities, subject to specified conditions.
[1] Notification No. 29/2026 – Haryana Shehri Vikas Pradhikaran
Vide Notification No. 29/2026, the Central Government has notified the Haryana Urban Development Authority (now known as Haryana Shehri Vikas Pradhikaran) under clause (46A) of section 10 of the Income-tax Act, 1961.
The authority, constituted under the Haryana Urban Development Authority Act, 1977, has been granted exemption with effect from the Assessment Year 2024–25, subject to the condition that it continues to operate for the purposes specified under the said provision.
[2] Notification No. 30/2026 – Patiala Urban Planning and Development Authority
Through Notification No. 30/2026, the Patiala Urban Planning and Development Authority (PDA) has been notified under section 10(46A) of the Act.
The authority is constituted under the Punjab Regional and Town Planning and Development Act, 1995. The exemption shall be applicable from the Assessment Year 2024–25, subject to fulfillment of prescribed conditions under the Income-tax Act.
[3] Notification No. 31/2026 – Varanasi Development Authority
Notification No. 31/2026 notifies the Varanasi Development Authority under section 10(46A) of the Income-tax Act.
The authority, established under the Uttar Pradesh Urban Planning and Development Act, 1973, has been granted exemption effective from the Assessment Year 2025–26, subject to continuation of its statutory functions as specified.
[4] Notification No. 32/2026 – Visakhapatnam Special Economic Zone Authority
Further, Notification No. 32/2026 has been issued under section 10(46) of the Income-tax Act in respect of the Visakhapatnam Special Economic Zone Authority.
The notification grants exemption on specified income streams such as lease rent, fees, allotment charges, and interest income, subject to conditions including:
- non-engagement in commercial activities,
- consistency in nature of activities and income, and
- filing of income-tax returns as per statutory provisions.
The exemption is applicable for Assessment Years 2024–25 to 2028–29 (as specified), covering relevant financial years, subject to compliance with the stated conditions.
Explanatory Memorandum
In all the above notifications, it has been clarified that granting retrospective effect from the year of application does not adversely affect any person.
Conclusion
These notifications reinforce the Government’s commitment to facilitating statutory authorities engaged in urban infrastructure development and special economic zone administration by providing tax exemptions, thereby enabling them to focus on planned development and public service delivery.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/CBDT-NN-29-to-32.pdf
