The Central Board of Direct Taxes (CBDT) has announced the Baddi Barotiwala Nalagarh Development Authority (BBNDA) u/s 10(46) of the Income-tax Act, 1961, granting income tax exemption on certain income for Assessment Years 2019-20 to 2023-24. The notification has been issued through Notification No. 82/2026, dated 13 July 2026.
The exemption has been furnished as per the savings provisions u/s 536 of the Income-tax Act, 2025, which maintains the applicability of the repealed Income-tax Act, 1961 for proceedings concerning tax years starting before 1 April 2026. As per the notification, the tax exemption under section 10(46) of the 1961 Act continues to apply to qualifying entities despite the enactment of the new Income Tax Act, 2025.
In this notification, the cited exempt income of the BBN Development Authority includes:
Grants received from the Central Government or the Government of Himachal Pradesh; Revenue receipts under the Himachal Pradesh Town and Country Planning Act, 1977; and Interest earned on bank deposits.
The exemption will be applicable under specific conditions. The authority should not be involved in any commercial activity, the nature of its activities and specified income should not be changed in the related fiscal year, and it should submit its income tax return under Section 139(4C)(g) of the Income-tax Act, 1961.
If these norms are not complied than it may result in withdrawal of the exemption and initiation of penal proceedings under the act.
The notification has been furnished with retrospective effect, which makes it applicable for the Financial Years 2018-19 to 2022-23, corresponding to Assessment Years 2019-20 to 2023-24.
Also Read: CBDT Notification 01/CPC(TDS)/2026: New UIN Framework for Form 121 (Income Tax Act, 2025)
CBDT stated that granting retrospective effect does not impact the interests of any person.
Read Notification No. 82/2026/F. No. 300196/45/2025-ITA-I
