The CBDT issued Notification No. 114/2025 dated July 14, 2025, granting income tax exemption under Section 10(46) of the Income-tax Act, 1961. The exemptions apply to the Baddi Barotiwala Nalagarh Development Authority (PAN AAALB0528J).
This exemption applies to specific income earned by the authority, including:
(a) Grants received from the Central and State Governments,
(b) Revenue receipts under the HP Town and Planning Act, 1977, and
(c) Interest income on bank deposits.
The notification clarifies that the exemption is subject to the following conditions:
- BBNDA must not engage in any commercial activity,
- The nature of its activities and sources of income must remain unchanged during the relevant years, and
- It must file income tax returns as per clause (g) of sub-section (4C) of Section 139 of the Act.
Notably, the exemption is granted retrospectively, applicable for Assessment Years 2014–15 to 2018–19, covering Financial Years 2013–14 to 2017–18. This move aligns with the government’s objective of supporting statutory development authorities by easing their tax compliance burden.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/07/CBDT-Baddi-Barotiwala-Nalagarh-Development-Authority.pdf
