Latest news with #NewOkhlaIndustrialDevelopmentAuthority
News18
3 days ago
- Business
- News18
Big Boost For NOIDA: CBDT Grants Tax Relief On Public Utility Income; Know It Means
Last Updated: Starting from Assessment Year 2024–25, NOIDA is exempt from income tax on non-commercial earnings under Section 10(46A), enabling more investment in public infrastructure. News18 The New Okhla Industrial Development Authority in short 'NOIDA' won't have to pay income tax on certain earnings, thanks to a new exemption under Section 10(46A) of the Income Tax Act. It is effective from the Assessment Year 2024–25, The Central Board of Direct Taxes (CBDT) made it official with the new notification. Let's break down what this means and why it's a big deal. What's Exempt and What's Not? This tax break applies to NOIDA's non-commercial income—like rent, service fees, and government grants. Since NOIDA was set up under the Uttar Pradesh Industrial Area Development Act of 1976, it qualifies as a public utility body, making it eligible for this relief. But there's a catch: any money NOIDA makes from commercial or profit-driven activities will still be taxed as usual. Why This Matters A senior official put it simply as quoted by several media reports: this exemption lets NOIDA keep more of its money to invest in public infrastructure. It can focus on building better roads, improved housing, upgraded drainage systems, and smoother transport—without raising local taxes or fees. For businesses in the area, this could mean faster project approvals, better industrial facilities, and more efficient public services. How It Benefits Residents and Businesses For those living in NOIDA, this is a win. The extra funds could lead to noticeable upgrades in their daily life—smoother roads, better public transport, or improved urban planning. Businesses can expect a boost too, with NOIDA likely to streamline services and improve industrial infrastructure, making it easier to get projects off the ground. This exemption puts NOIDA in the same league as Sovereign Wealth Funds and Pension Funds that support infrastructure in India. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
6 days ago
- Business
- Mint
No tax in NOIDA? CBDT gives THIS exemption under Income Tax Act — what it means for residents, businesses
New Okhla Industrial Development Authority (NOIDA) will not be required to pay income tax, after a major exemption under Section 10 (46A) of the Income Tax Act, starting from assessment year 2024–25. 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.
