Latest news with #UttarPradeshIndustrialAreaDevelopmentAct
India Today
22-07-2025
- Business
- India Today
NOIDA is now tax-free. Check who benefits and how
NOIDA has just earned itself a new label, i.e, 'tax-free'. But what does this really mean for the city, its businesses, and its people? The news has already stirred up interest among builders, shopkeepers, and investors Central Board of Direct Taxes (CBDT) recently notified that the New Okhla Industrial Development Authority (NOIDA) will enjoy tax-free status under Section 10(46A) of the Income-tax Act, beginning from the assessment year 2024–25. CA (Dr) Suresh Surana points out, however, that there's more to this than meets the its press note dated 17 July 2025, the CBDT clarified, 'This notification shall be effective from the assessment year 2024-2025, subject to the condition that the assessee continues to be an authority constituted under the Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act No.6 of 1976) with one or more of the purposes specified in sub-clause (a) of clause (46A) of section 10 of the Income-tax Act.' Surana pointed out, 'It is important to note that this exemption is limited solely to income tax and may not extend to other statutory levies.'He further explains that this special relief comes with conditions: 'The so-called 'tax-free' status should not be misconstrued as a blanket exemption from all forms of taxation. It is a specific fiscal relief aimed at supporting NOIDA's public infrastructure and developmental responsibilities by relieving it from the burden of income tax, provided it continues to fulfil the statutory conditions outlined in the notification.'SO, WHAT'S TAX-FREE, AND WHAT'S NOT?In simple terms, only NOIDA's income tax burden is waived. Surana clarifies, 'This exemption is limited solely to income tax and may not extend to other statutory levies.'So, while NOIDA will continue to collect fees and charges, it no longer needs to pay income tax on the money it earns from rents, fees, or grants, as long as it sticks to its main job of urban planning and development for the public BUSINESSES COULD GAINThough the tax break applies directly only to the authority, businesses in NOIDA could feel a welcome ripple effect. With more money left in its kitty, the authority is expected to boost spending on roads, water supply, public transport, industrial zones, and other civic works.'Businesses operating in NOIDA may experience indirect financial benefits,' Surana says. He explains, 'While the exemption itself applies to NOIDA and not directly to private enterprises, it can lead to cost efficiencies and improved infrastructure for businesses functioning within its jurisdiction.'Better roads and quicker approvals mean smoother operations, fewer hold-ups and less red tape. Over time, Surana says, 'This may enhance its capacity to reinvest in civic infrastructure, industrial development, public utilities, and urban planning. Over time, this could translate into better services, quicker project approvals, and improved amenities for commercial establishments operating in the area.'NO EXPIRY DATE, BUT THERE'S A CATCHadvertisementMany wonder how long this tax-free status will last. There is no deadline, but there's a clear condition. The exemption will continue as long as NOIDA sticks to its original role of public development under the Uttar Pradesh Industrial Area Development Act, Surana sums up, 'The tax-free status applies from AY 2024–25 onwards and continues indefinitely, without a preset end date provided NOIDA remains legally constituted under its enabling Act and carries out the specified public-interest functions.'WHY THIS MATTERS FOR NOIDA'S FUTUREAt a time when cities are competing hard to attract businesses and investors, this tax relief could give NOIDA a fresh edge. If managed well, the extra funds could mean smoother roads, quicker building clearances, and better facilities, making life easier for companies and residents the new tag doesn't mean a free pass for everyone, the hope is that NOIDA's 'tax-free' badge, used wisely, will help the city grow faster, smarter, cleaner and more business-friendly in the years ahead.- Ends
Mint
18-07-2025
- 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.
Time of India
29-06-2025
- Business
- Time of India
Allahabad HC quashes Greater Noida order to cancel plots, cites possession delay and lack of civic infra
Noida: In a legal setback to Greater Noida Industrial Development Authority (GNIDA), Allahabad high court has quashed two separate plot cancellation orders, saying the Authority "failed to meet deadlines and followed flawed processes". One order was related to a large IT/ITES project in Tech Zone II and the other to a group housing project in Sector 10. The twin verdicts, delivered earlier this month by Justice Prakash Padia, restored the allotments and brought relief to the realtors, Elevator Properties and Kinetic Buildtech. They had challenged GNIDA's actions in court, alleging that its own defaults stalled their projects. You Can Also Check: Noida AQI | Weather in Noida | Bank Holidays in Noida | Public Holidays in Noida In the first case, on June 16, 2023, GNIDA had cancelled the allotment, citing non-utilisation of land, non-obtaining of a completion certificate and failure to deposit due payments. The 25-acre IT/ITES plot was originally allotted in Oct 2007 to a consortium led by Anant Raj Industries Ltd. It was later transferred to its subsidiary, Elevator Properties, through a lease deed in Aug 2010. Despite over a decade passing, no construction took place. Against the cancellation, Elevator Properties filed a petition in the HC in 2024, arguing that the Authority failed to complete external development works, such as roads, drainage and services, making the land commercially unusable, despite the developer paying the entire premium at lease execution. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo A key legal issue was the amendment to Section 7 of the Uttar Pradesh Industrial Area Development Act in 2022, allowing the Authority to cancel non-utilised plots only by first issuing notice at least three months before Dec 31, 2022, directing the allottee to complete construction by that date. If the plot remained unused, it would stand automatically cancelled on Dec 31, 2022. GNIDA, however, issued its notice only on Jan 3, 2023, after the cut-off date of Sept 30, 2022 to issue such notices. In his order, Justice Prakash Padia ruled that after missing the statutory deadline, GNIDA lost legal power to cancel under this amended provision. The court called the cancellation "wholly without jurisdiction" and "perverse," restoring the allotment and entitling Elevator Properties to consequential benefits. The court also noted GNIDA's cancellation had earlier been upheld by an order dated Nov 23, 2023, passed by the principal secretary, industrial development department, which the court has now set aside. In the second case, the court quashed GNIDA's 2017 cancellation of a plot measuring five acres, allotted to Kinetic Buildtech in May 2014 under a group housing scheme. The plot was allotted in 2014 and the petition against the cancellation was filed in this case in May 2023.
