The Central Government, through the Central Board of Direct Taxes under the Department of Revenue, Ministry of Finance, has issued Three notifications dated July 27, 2026 providing income-tax exemption in respect of specified income of the Fees Regulating Authority, Maharashtra, and the Chhattisgarh Real Estate Regulatory Authority.
The notifications prescribe the categories of income eligible for exemption, the applicable financial, assessment or tax years, and the conditions that the authorities are required to fulfil for continuing to avail the exemption.
Tax Exemption for Fees Regulating Authority, Maharashtra
Under Notification No. 98/2026, the Central Government has notified the Fees Regulating Authority, Maharashtra, bearing PAN AAAJF0167B, for the purposes of Section 10(46) of the Income-tax Act, 1961.
The exemption covers specified income earned by the Authority from processing fees, interest, penalties and other charges payable by private professional educational institutions; reimbursements and grants received from the Government of Maharashtra; and interest earned on bank deposits and other investments.
The exemption is subject to the conditions that the Authority shall not engage in any commercial activity, its activities and the nature of the specified income shall remain unchanged throughout the relevant financial years, and it shall file its return of income in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
The notification shall be deemed to have applied for Assessment Years 2022-23, 2023-24, 2024-25, 2025-26 and 2026-27, corresponding to Financial Years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26.
Failure to comply with the prescribed conditions may result in initiation of penal action and withdrawal of the exemption granted under Section 10(46) of the Income-tax Act, 1961.
Retrospective Tax Exemption for Chhattisgarh Real Estate Regulatory Authority
Under Notification No. 99/2026, the Central Government has notified the Chhattisgarh Real Estate Regulatory Authority, bearing PAN AAAJC1049H, for the purposes of Section 10(46) of the Income-tax Act, 1961.
The specified exempt income includes grants-in-aid, loans or advances received from the Government; fees and penalties received from builders, developers, agents and other stakeholders under the Real Estate (Regulation and Development) Act, 2016; and interest earned on such receipts.
The exemption is subject to the Authority not undertaking any commercial activity, maintaining unchanged activities and sources of specified income throughout the relevant financial years, and filing its return of income in accordance with Section 139(4C)(g) of the Income-tax Act, 1961.
The notification shall be deemed to have applied for Assessment Years 2024-25, 2025-26 and 2026-27, corresponding to Financial Years 2023-24, 2024-25 and 2025-26.
The notification further clarifies that no person’s interests are being adversely affected by the grant of retrospective effect from the year in which the application was filed before the Board or the Income-tax Department.
Exemption Continued under the Income-tax Act, 2025
Under Notification No. 100/2026, the Central Government has also notified the Chhattisgarh Real Estate Regulatory Authority under Schedule III, Table Serial No. 36, read with Section 11 of the Income-tax Act, 2025.
The notification covers grants-in-aid, loans or advances received from the Government; fees and penalties received from builders, developers, agents and other stakeholders under the Real Estate (Regulation and Development) Act, 2016; and interest earned on these receipts.
The exemption shall remain effective provided that the Authority does not engage in any commercial activity, files its return of income in accordance with Section 263(9)(c)(xiii) of the Income-tax Act, 2025, and ensures that its activities and the nature of specified income remain unchanged throughout the relevant tax years.
Notification No. 100/2026 shall apply for Tax Years 2026-27 and 2027-28. Non-compliance with the prescribed conditions may result in withdrawal of the exemption and initiation of proceedings under the Income-tax Act, 2025.
Ensuring Continuity under the New Income-Tax Framework
Notification Nos. 98/2026 and 99/2026 address exemption for the relevant periods governed by the Income-tax Act, 1961, in accordance with the repeal and savings provisions of the Income-tax Act, 2025.
Notification No. 100/2026 provides for continuation of the exemption available to the Chhattisgarh Real Estate Regulatory Authority under the framework of the Income-tax Act, 2025 for Tax Years 2026-27 and 2027-28.
The three notifications collectively provide clarity regarding the tax treatment of specified statutory receipts of the two State-level regulatory authorities, while making the exemptions conditional upon their continued non-commercial character, timely filing of income-tax returns and maintenance of the notified nature of activities and income.
The Notification s can be accessed at: Notification No. 98/2026 , Notification No. 99/2026 , Notification No. 100/2026
