The Central Government, through the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, has issued Notification No. 73/2026 dated July 02, 2026, notifying the Mussoorie Dehradun Development Authority, having PAN AAAAM4651Q, for the purposes of exemption under section 10(46) of the Income-tax Act, 1961.
The notification has been issued in pursuance of the provisions of section 536(2)(a) to (c) and (e) of the Income-tax Act, 2025, which preserve certain rights, obligations, proceedings and actions under the repealed Income-tax Act, 1961. Accordingly, the provisions of the Income-tax Act, 1961 shall continue to apply in respect of specified pending or relevant proceedings relating to tax years beginning before April 1, 2026.
Under the notification, the specified income of the Mussoorie Dehradun Development Authority, an authority constituted by the State Government of Uttarakhand, shall be eligible for exemption. The specified income includes grants, loans and advances received from the Government of Uttarakhand; fees, charges or income levied under the Uttarakhand Urban and Country Planning and Development Act, 1973; income from disposal of lands, buildings and other movable or immovable properties; income from lease or rent; and interest earned on bank deposits.
The exemption shall be subject to certain conditions. The Authority shall not engage in any commercial activity, its activities and the nature of specified income shall remain unchanged during 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 further provides that failure to comply with the prescribed conditions shall result in initiation of penal action under the provisions of the Income-tax Act, 1961, along with withdrawal of the exemption granted under section 10(46) of the said Act.
The notification shall be deemed to have been applied for Assessment Years 2022-23 and 2023-24, relevant to Financial Years 2021-22 and 2022-23. The Explanatory Memorandum states that no person’s interests are being adversely affected by giving retrospective effect to the notification.
The Notification can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/notification-no-73-2026-pdf
