The Central Board of Direct Taxes (CBDT) has issued three separate notifications under Section 10(46) of the Income-tax Act, 1961, granting tax exemption to specific Government-constituted bodies engaged in public welfare, worker welfare, and digital governance. The notifications relate to the Karnataka State Rural Livelihood Promotion Society, the Dadra & Nagar Haveli Building and Other Construction Workers Welfare Board, and the Tamil Nadu e-Governance Agency. Details of each notification are summarised below.
Notification No. 11/2026 — Karnataka State Rural Livelihood Promotion Society
The Central Government has notified the Karnataka State Rural Livelihood Promotion Society (PAN: AACAK0581H), constituted by the Government of Karnataka, for exemption in respect of specific categories of income. These include grants received from the Central Government, grants received from the State Government of Karnataka, and interest earned on bank deposits. The notification stipulates that the Society must not engage in any commercial activity, that its activities and the nature of its specified income must remain unchanged, and that it must file its return of income in accordance with section 139(4C)(g) of the Income-tax Act.
The notification is deemed applicable for the assessment years 2024–25 and 2025–26, corresponding to financial years 2023–24 and 2024–25, and will further apply for assessment years 2026–27, 2027–28, and 2028–29. The accompanying explanatory memorandum clarifies that no person is adversely affected by the retrospective effect of the notification.
Notification No. 12/2026 — Dadra & Nagar Haveli Building and Other Construction Workers Welfare Board
The Government has issued a notification granting tax exemption to the Dadra & Nagar Haveli Building and Other Construction Workers Welfare Board (PAN: AAALT2225N), constituted by the Union Territory Administration. The exemption covers income derived from cess collected under the Building and Other Construction Workers’ Welfare Cess Act, 1996, registration fees collected under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, and interest accrued on bank deposits. The Board is required to refrain from commercial activities, maintain the nature of its specified income throughout the financial years, and file its return of income as per section 139(4C)(g).
This notification is deemed to apply retrospectively for assessment years 2019–20 to 2023–24, relevant to financial years 2018–19 to 2022–23. The explanatory memorandum asserts that the retrospective effect does not adversely impact any person.
Notification No. 13/2026 — Tamil Nadu e-Governance Agency (TNeGA)
The Central Government has also notified the Tamil Nadu e-Governance Agency (PAN: AABTT6381N), established by the Government of Tamil Nadu, for exemption on various specified receipts. These include recurring contributions and grants-in-aid from the Tamil Nadu Government and other authorities for operational expenditure, service charges collected through Common Service Centres, service charges for software development and IT consultancy for government bodies, dividends from CSC e-Governance Services India Ltd., administrative cost received on UIDAI’s PEC grants, revenue sharing from online examination services, any future income incidental to the society’s objectives, and interest earned on all such income streams.
The exemption is subject to conditions requiring that the Agency not engage in commercial activity and that its activities and the nature of its specified income remain unchanged, in addition to filing its income tax return under section 139(4C)(g). The notification applies retrospectively for assessment years 2024–25 and 2025–26 and prospectively for assessment years 2026–27, 2027–28, and 2028–29. The explanatory memorandum confirms that no person is adversely affected by the retrospective application.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/CBDT-11-to-13.pdf
