No tax in NOIDA? CBDT gives THIS exemption under Income Tax Act — what it means for residents, businesses
The Central Board of Direct Taxes (CBDT) issued a notification on July 17 granting NOIDA, an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976, an exemption for performing non-commercial roles.
According to the latest notification, income from public utility services like rent, fees, and government grants will no longer be taxed as per Section 10 (46A) of the Income Tax Act. However, any commercial or profit-driven activities conducted by NOIDA will still be fully taxable.
The notification issued by CBDT read, 'In exercise of the powers conferred by sub-clause (b) of clause (46A) of section 10 of the Income-tax Act, 1961 (43 of 1961), (hereinafter referred to as 'the Income-tax Act'), the Central Government hereby notifies 'New Okhla Industrial Development Authority' (PAN: AAALN0120A) (hereinafter referred to as 'the assessee'), an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act No. 6 of 1976), for the purposes of the said clause.'
The benefits of the latest rule for residents will most likely include improved conditions of roads, housing facilities, transportation, and drainage systems without the imposition of increased local taxes.
The exemption will reportedly result in quicker approval of projects and better industrial infrastructure for businesses, even though the tax liabilities remain the same.
However, the tax department has issued a condition under this exemption. NOIDA will be required to maintain clear records distinguishing between exempt and non-exempt income to avail the tax benefits.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Readers are advised to consult with qualified tax professionals, legal advisors, or financial consultants before making any decisions regarding offshore residency, taxation, or business restructuring. Tax laws are subject to change and may vary based on individual circumstances.
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Time of India
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The Committee has recommended changes in the Income Tax Bill, 2025, which will replace the six-decade-old Income Tax Act, 1961. BJP Member Baijayant Panda, who headed the Select Committee of the Lok Sabha to scrutinise the Income Tax Bill, 2025, tabled the report in the Lower House. New Delhi, Jul 21 (PTI) A Parliamentary panel, which examined the new Income Tax Bill, on Monday suggested that the Finance Ministry allows individual taxpayers to claim TDS refunds by filing I-T returns after the due date without penalty, and exempt anonymous donations made to religious-cum-charitable trusts from taxation. The panel suggested that the ambiguity with regard to Non-Profit Organisations (NPOs), especially those with mixed charitable and religious objectives, for taxing anonymous donations should be removed. The Committee opposed taxing 'receipts' of NPOs as it contravenes the principle of real income taxation under the Income Tax Act. It recommended reintroducing the term 'income' to ensure only net income of NPOs is taxed. Observing that there is a 'significant divergence in the treatment of anonymous donations' to registered NPOs, the committee suggested that such donations should be exempt for religious as well as charitable trusts because many such entities have a hybrid nature. 'While the Bill's stated aim is textual simplification, the committee observe a critical omission concerning religious-cum-charitable trusts, which could have substantial adverse impacts on a large segment of India's NPO sector,' it noted. The Clause 337 of the Income Tax Bill, 2025, proposed a flat 30 per cent tax on anonymous donations received by all registered NPOs, with a narrow exemption extended only to those established wholly for religious purposes. This marks a stark departure from the current Section 115BBC of the Income-tax Act, 1961. The existing law provided a more comprehensive exemption: anonymous donations were not taxed if received by any trust or institution created or established wholly for religious and charitable purposes, unless such a donation was specifically directed towards a university, educational institution, hospital, or medical institution run by that same trust or institution. The existing provision legitimately recognises these 'religious-cum-charitable' entities as a distinct and valid class eligible for concessions on anonymous donations, understanding that such organisations often receive contributions through traditional means (like donation boxes) where donor identification is practically impossible. 'The committee strongly urge the reintroduction of a provision analogous to the explanation found in Section 115BBC of the 1961 Act,' the Select Committee report said. With regard to refund of TDS refund claims by individuals who are otherwise not required to file tax returns, the committee suggested removal of the provision in the Income Tax Bill that makes it mandatory for an assessee to file I-T returns within the due date. The committee observe that the current mandatory requirement to file a return solely for the purpose of claiming a refund could inadvertently lead to prosecution, particularly for small taxpayers whose income falls below the taxable threshold but from whom tax has been deducted at source. 'In such scenarios, the law should not compel a return merely to avoid penal provisions for non-filing. The committee, therefore, recommend to remove sub-clause (1)(ix) from Clause 263 to provide flexibility for allowing refund claims in cases where the return is not filed in due time,' it noted. PTI JD CS JD DR DR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
