The Central Government has notified tax exemption in respect of specified income arising to the Kerala Real Estate Regulatory Authority (Kerala RERA) through two notifications issued by the Central Board of Direct Taxes on 29 July 2026. The notifications provide for the exemption under the applicable provisions of the Income-tax Act, 1961, for earlier financial years and under the Income-tax Act, 2025, for tax year 2026-27.
Notification No. 101/2026, issued vide S.O. 4190(E), notifies Kerala RERA, bearing PAN AAAGK1025N, for the purposes of section 10(46) of the Income-tax Act, 1961. Kerala RERA is an authority constituted by the Government of Kerala under sub-section (1) of section 20 of the Real Estate (Regulation and Development) Act, 2016.
Under Notification No. 101/2026, exemption has been provided in respect of the following specified income of Kerala RERA:
- (i) fees collected for registration of projects, real estate agents and plots;
- (ii) fees received for filing compensation claims and complaints; and
- (iii) grants received from the Government.
The exemption is subject to the conditions that Kerala RERA shall not engage in any commercial activity; its activities and the nature of the specified income shall remain unchanged during the relevant financial years; and it shall file its return of income in accordance with the applicable provisions of the Income-tax Act, 1961. Failure to comply with these conditions may result in initiation of penal action and withdrawal of the exemption granted under section 10(46).
Notification No. 101/2026 shall be deemed to apply for Assessment Years 2023-24, 2024-25, 2025-26 and 2026-27, corresponding to Financial Years 2022-23, 2023-24, 2024-25 and 2025-26, respectively. The notification bears F. No. 300196/88/2024-ITA-I.
Separately, Notification No. 102/2026, issued vide S.O. 4191(E), notifies Kerala RERA under Schedule III, Table Serial No. 36, read with section 11 of the Income-tax Act, 2025. The exemption under this notification covers the same categories of specified income, namely registration fees received in respect of projects, agents and plots; fees for filing compensation claims and complaints; and Government grants.
The exemption under Notification No. 102/2026 is subject to the conditions that Kerala RERA shall not undertake any commercial activity; shall file its return of income in accordance with clause (c)(xiii) of sub-section (9) of section 263 of the Income-tax Act, 2025; and shall ensure that its activities and the nature of its specified income remain unchanged throughout the tax year.
Non-compliance with the prescribed conditions will result in withdrawal of the exemption available under Schedule III read with section 11 of the Income-tax Act, 2025, and initiation of proceedings under the said Act. Notification No. 102/2026 will apply for Tax Year 2026-27 and has also been issued under F. No. 300196/88/2024-ITA-I.
Taken together, the two notifications provide continuity in the tax treatment of the specified income of Kerala RERA during the transition from the Income-tax Act, 1961 to the Income-tax Act, 2025, subject to fulfilment of the stipulated conditions.
The Notifications can be accessed at: Notification No. 101/2026 , Notification No. 102/2026
